Swedfund backs Ivorian fund to support SMEs in francophone Africa
- Swedfund invests $16.3 million in Joliba Capital Fund I for lending to small businesses in francophone Africa.
- Investment aims to support the growth of small and medium-sized enterprises and create job opportunities in French-speaking Africa.
- Access to capital for SMEs will contribute to socio-economic development, job creation, and local tax generation.
The investment will enable the growth of small and medium-sized enterprises, which are essential for private sector growth and the creation of jobs in the less developed regions of French-speaking Africa.
There is a great need to create more employment opportunities in the formal sector in French-speaking West and Central Africa. By investing in Joliba Capital Fund I, Swedfund will help improve access to capital for SMEs, which is expected to support socio-economic development through job creation and generation of income and local taxes.
Apart from Joliba Capital, there are few other players in the region that focus on growth investments in SMEs, making Swedfund's investment crucial for SMEs in need of growth capital. In 2022, inflation in sub-Saharan Africa rose to around 14%, mainly due to rising food and energy prices in commodity-importing countries. West Africa has been more affected, mainly due to high inflation in major economies, such as Ghana and Nigeria. However, the macroeconomic development of the countries targeted by Joliba Capital is more stable and inflation is lower.