TLG Africa Growth Fund II 2026
Introduction
Swedfund is investing an additional USD 5 million in TLG Africa Growth Impact Fund II (TLG II).
The investment will further support the preservation and creation of decent jobs in small and medium sized companies that otherwise struggle to access financing.
Read more in our press release: Swedfund increases investment to preserve and create jobs in African SMEs
Facts
SDG in focus
No Poverty
End poverty in all its forms everywhere.
Gender Equality
Achieve gender equality and empower all women and girls.
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.
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 aims to support the growth of technology companies across Africa, creating sustainable jobs and improving access to essential services. The fund helps strengthen the region’s venture capital market and promotes inclusive growth, particularly through increased gender equality. It also contributes to broader development outcomes, including financial inclusion and digitalisation.
Additionality
Swedfund’s investment is financially additional as there is a significant shortage of growth capital in African markets, particularly following the decline in available capital after Covid-19. The investment is also value additional through support to ESG and impact frameworks, strengthened corporate governance, and initiatives that promote gender equality and women’s economic empowerment.
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 (FI-B), based on potential environmental and social risks and impacts, target clients and operating context in the countries where the fund invests.
ESG Mitigation Measures
Swedfund supports the fund in strengthening its environmental and social management systems, building capacity in ESG analysis, and integrating gender considerations into due diligence and portfolio monitoring. Swedfund also promotes strengthened grievance mechanisms, client protection measures, and collaboration on emerging sustainability issues, including data protection and labour conditions in the gig economy.
Applicable IFC Performance Standards
IFC Performance Standards (PS) 1 – 2 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.
Other investments within
Financial Inclusion & MSME Financing