Swedfund Commits $28M to AfricInvest Fund for Financial Inclusion
TLDR
- Swedfund, Sweden’s development finance institution, has invested €26 million ($28.2 million) in AfricInvest’s Financial Inclusion Vehicle (FIVE)
- FIVE, launched in 2017 by Pan-African private equity firm AfricInvest, focuses on Tier II and Tier III institutions, including banks, insurers, and fintechs that serve low-income populations and SMEs
- This follows Swedfund’s €15 million investment in AfricInvest’s Small Cap Fund, which targets SMEs. Combined, both investments align with Swedfund’s strategy to promote inclusive finance
Swedfund, Sweden’s development finance institution, has invested €26 million ($28.2 million) in AfricInvest’s Financial Inclusion Vehicle (FIVE), a fund targeting underserved financial institutions across Africa. The investment aims to expand access to banking for unbanked individuals and small businesses.
FIVE, launched in 2017 by Pan-African private equity firm AfricInvest, focuses on Tier II and Tier III institutions, including banks, insurers, and fintechs that serve low-income populations and SMEs. Swedfund’s capital will support financial institutions deploying both traditional and digital-first solutions to improve access to credit, savings, and insurance.
This follows Swedfund’s €15 million investment in AfricInvest’s Small Cap Fund, which targets SMEs. Combined, both investments align with Swedfund’s strategy to promote inclusive finance and economic empowerment. A consortium of European and African development institutions backs the Financial Inclusion Vehicle. Swedfund’s contribution will also support the portfolio's gender-inclusive financial practices and women-focused initiatives.
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Key Takeaways
With only 20% of Africans using formal banking services, development finance institutions are increasing capital flows into inclusive finance platforms. Swedfund’s €26 million investment into AfricInvest’s FIVE fund reflects a broader strategy to support smaller financial institutions that reach underserved segments. These institutions—often Tier II and Tier III players—play a critical role in extending services to rural populations, informal businesses, and women entrepreneurs. FIVE’s focus on combining traditional banking with digital innovation aims to create scalable and sustainable models for reaching new users. The investment also builds resilience in financial ecosystems by strengthening the capital base of banks, insurers, and fintechs. As African economies seek inclusive growth, targeted financial infrastructure investments like FIVE are expected to drive job creation, household stability, and entrepreneurial activity. Swedfund’s emphasis on gender equality further aligns with global development goals. Such blended finance models—combining public capital with private sector expertise—are likely to grow as a tool for bridging Africa’s financial access gap.
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