Swiss Investment Fund
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African River Fund

The current-income generalist fund provides long-term financing to underserved SMEs across frontier markets in Sub-Sahara Africa with a focus on healthcare, agribusiness, logistics, transport, pharmaceuticals, and ICT sectors.

African River Fund

The current-income generalist fund provides long-term financing to underserved SMEs across frontier markets in Sub-Sahara Africa with a focus on healthcare, agribusiness, logistics, transport, pharmaceuticals, and ICT sectors.

Investment strategy

The fund provides much needed long-term financing to sustainable, growing SMEs that are operating across frontier markets, which tend to have weaker investment ecosystems with limited access to finance, know-how, and business support.

Development Rationale

While frontier markets in Sub-Saharan Africa are growing rapidly SMEs have no or very limited access to private capital and face a significant funding gap. Still they contribute to 70% of permanent employment. The fund not only provides growth capital but also business expertise accross ESG, HR, financial operations and upskilling.

Investment Rationale

The fund addresses a funding gap for SMEs and provides business advisory and technical assistance thereby contributing to economic growth and resilience, the creation of decent jobs, inclusion of women and capital market development. As a first-close investor, SIFEM helps to mobilize capital in an underserved region for several priority countries and LDCs.

Contribution to strategic objectives

  • Job creation: nww jobs as a result of growth, upskilling, decent wages and gender focus
  • Gender equality: fulfilling criteria 2 (Leadership) and 5 (Investment through Financial Intermediaries)
  • Priority countries

Additionality

  • Sustainability Additionality: applies responsible investment policy and pursues a climate goal.
  • Financial Additionality: supporting an existing partner, contributing to first close and mobilization of additional private and public capital
Reference code
2023-10
Status
Committed
Date of commmitment
December 2023
Date of exit
-
SIFEM commitment
USD
10,000,000
Asset class
Private Debt
Investment strategy
Investment through Fund

Target focus

Healthcare
Agribusiness, Aquaculture, Forestry
Digital Infrastructure & Services
Logistic
Transport

Target countries

Congo, Dem. Rep.
Uganda
Zambia
Kenya
Angola
Fund manager
XSML Capital Limited