Inside Equity Fund II
Introduction
Inside Equity Fund II targets investments in small and medium-sized enterprises (SMEs) in Southeast Africa, primarily in the least developed countries of Zambia and Madagascar.
Swedfund's investment is expected to contribute to job creation, tax revenues and private sector development in Southeast Africa where there is a shortage of venture capital, which is particularly notable for growth-stage SMEs.
Co-investors include the U.S. International Development Finance Corporation (DFC), International Finance Corporation (IFC) , BIO, DGGF, Terra Mauricia Ltd and MIC Ltd.
Read more in our press release: Catalysing sustainable growth through SMEs in Southeast Africa
Related links:
Swedfund Policy For Sustainable Development
Swedfund E&S Categorisation
Facts
SDG in Focus
No Poverty
End poverty in all its forms everywhere.
Decent Work and Economic Growth
Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.
Reduced Inequalities
Reduce inequality within and among countries.
Value creation
Impact
The investment promotes local economic growth by increasing access to finance for innovative companies. Furthermore, the investment is expected to contribute to job creation and other income-generating opportunities locally. The investment also contributes to local tax revenues and to women's economic empowerment by increasing job opportunities for women.
Additionality
Swedfund’s investment is financially additional as it is made in a challenging, high-risk context where access to capital is limited, the business environment is challenging, and poverty rates are high. The investment is expected to contribute to mobilising capital. The investment is value additional through a strong focus on active value creation during the investment phase where environment, sustainability and corporate governance are prioritised.
ESG Summary
Requirements
In line with Swedfund’s Policy for Sustainable Development, the Fund is required to materially comply with, inter alia: (i) all internationally recognised human rights, (ii) the EDFI harmonized exclusion list and EDFI Fossil Fuel Exclusion List, (iii) local environmental, health & safety and labour laws and regulations, (iv) applicable IFC Performance Standards, (v) the ILO’s Declaration on Fundamental Principles and Rights at Work and the ILO’s Basic Terms and Conditions of Employment.
ESG risk
E&S risk categorisation is Medium-Low Risk (Fund B) based on the Fund’s investment strategy, investments pipeline and previous fund’s portfolio companies. Assessment and management of risks and impacts relate to climate, human rights, decent work, client protection principles and agriculture and food systems.
ESG mitigation measures
Mitigation measures address E&S capacity, including trainings and hiring a dedicated full-time E&S resource, business integrity, implementing a whistleblowing system, and strengthening due diligence processes to cover contextual risks such as responsible agricultural practices, climate, and human rights.
Applicable IFC Performance Standards
IFC Performance Standards 1-4 are applicable.
Whistleblowing channels and Grievance Mechanism
Swedfund’s whistleblowing services can be used by employees, contractors and others at Swedfund, and by the companies and funds in which Swedfund invests. The complaints mechanism can be used for all types of complaints concerning Swedfund and Swedfund’s portfolio companies, but not for complaints concerning individuals as a result of restrictions arising from data protection legislation. 🔹 Link in website footer.