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Second close investment aims to preserve and create decent jobs by bridging SME financing gap across Africa.
Swedfund has invested an additional USD 5 million in the TLG Africa Growth Impact Fund II (TLG II), further supporting the preservation and creation of decent jobs in small and medium-sized enterprises that otherwise struggle to access financing.
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Small and medium-sized enterprises (SMEs) play a vital role in job creation and local economic growth across Africa, yet often face significant challenges in accessing loans that meet their needs. Many are viable and have the potential to grow, but require financing on terms that are sustainable with their expected growth. Through its additional investment in TLG II, Swedfund helps bridge this financing gap by supporting a scalable credit solution that enables local companies to strengthen their businesses, grow, and create jobs.
Addressing the SME Financing Gap
“Through our continued engagement with TLG II, Swedfund helps address an important financing gap for SMEs in Africa. Flexible and tailored credit solutions can support viable companies with temporary liquidity needs, helping to preserve jobs while enabling businesses to recover, grow, and create new decent employment opportunities,” says Jonas Tornblad, Investment Manager at Swedfund.
Flexible Debt Solutions for Sustainable Growth
TLG II provides flexible, long-term debt to SMEs, backed by guarantees issued by banks.
This enables TLG to offer loans with tenors and interest rates that give viable companies better conditions to strengthen their businesses and grow sustainably.
Second Close with Strategic Partners
The investment is made as part of TLG II’s second close, together with Proparco, Calvert Impact Capital, and several existing investors. Swedfund previously invested USD 15 million in TLG II in 2025 and is now increasing its allocation by an additional USD 5 million.
