Lightrock Africa Growth Fund II
Introduction
Swedfund invests USD 15 million in Lightrock Africa Growth Fund II (“LAF II”). The investment aims to increase access to essential services, support economic growth and create jobs in underserved African markets.
Access to essential services such as financial and digital solutions, energy and transport remains limited for large parts of the population in many African countries, particularly among underserved groups and small and medium-sized enterprises (SMEs).
Addressing these gaps is important for fostering inclusive economic development, strengthening businesses, and creating jobs with decent working conditions.
Read more in our press release: Swedfund invests USD 15 million for inclusive growth and better access to essential services in Africa
Facts
SDG in focus
No Poverty
End poverty in all its forms everywhere.
Reduced Inequalities
Reduce inequality within and among countries.
Decent Work and Economic Growth
Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.
Climate Action
Take urgent action to combat climate change and its impacts.
Sector
Financial inclusion & MSME financing
Swedfund’s investments in Financial Inclusion are made in regulated banks and microfinance institutions in order to increase access to debt capital for entrepreneurs, MSMEs and low-in come earners, or in local investment platforms, local companies or through so-called private equity funds to increase access to equity capital for MSMEs.
Value creation
Impact
The investment contributes to inclusive economic development in Africa by supporting growth-stage, technology-enabled companies that expand access to essential products, services and economic opportunities. Lightrock Africa Growth Fund II invests in areas such as financial services, healthcare, education, mobility and climate solutions.
Additionality
Swedfund’s investment is additional, as DFI participation can help attract private capital in a challenging fundraising environment and enable co-investment opportunities in markets where access to capital remains limited.
ESG
Requirements
In line with Swedfund’s Policy for Sustainable Development, the portfolio company 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 Risk (Fund B)based on potential E&S risks and impacts inherent to the sectors in the fund's portfolio and contextual risks in the target countries.
ESG Mitigation Measures
Swedfund is supporting the fund in further developing its environmental and social management system to address matters related to sustainability processes and strengthen its capacity and resources. Swedfund is also supporting the fund in further strengthening its business integrity management system.
Applicable IFC Performance Standards
At fund-manager level, the applicable IFC Performance Standards are PS 1 and PS 2. At investee level, PS 1–4 apply, with PS 3 and PS 4 triggered on a case-by-case basis depending on the digitalisation aspects of individual investments.
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.
Other investments within
Financial Inclusion & MSME Financing