Sweden’s development finance institution, Swedfund, has committed $15 million to Lightrock Africa Growth Fund II, targeting technology-driven businesses expanding access to financial services, healthcare, energy and transport across underserved African markets.
The investment will provide capital to growth-stage companies with established business models, as investors increasingly seek opportunities in African businesses that combine commercial returns with measurable social and economic impact.
The commitment comes as many African startups and small businesses continue to face difficulties securing the long-term financing needed to expand operations, particularly beyond early-stage venture capital funding.
Lightrock Africa Growth Fund II aims to invest in businesses using technology to address gaps in essential services, including financial inclusion, digital infrastructure and sustainable mobility. The strategy focuses on companies capable of expanding their operations while improving access to services for individuals and small and medium-sized enterprises.
“Many growing businesses in Africa struggle to access the capital needed to expand services that people and small businesses rely on,” said Helen Hagos, Investment Director at Swedfund. “This investment will help businesses scale solutions in areas such as finance, healthcare and sustainable transport, contributing to job creation and stronger local economies. We also see potential for further private capital mobilisation.”
The investment highlights the growing role of development finance institutions in supporting African companies that have moved beyond the startup phase but…
