IFC and TLG Capital Raises $75M in Fund to Help Distressed SMEs Across Africa  

The International Finance Corporation (IFC) and TLG Capital raises $75M in fund to help distressed SMEs across Africa. This is big news for small and medium businesses that are struggling right now. With so many companies having trouble paying back their loans, this fund comes at just the right time.

The $75M fund raised by IFC and TLG Capital to help distressed SMEs across Africa is a lot of money, and it could make a real difference. The fund, called TLG Africa Growth Impact Fund II (AGIF II), is designed to step in when businesses need it most. The IFC is putting in $20 million of its own, but it’s not alone. Other big names like Swedfund, Norfund, Bpifrance, and the UK Foreign, Commonwealth & Development Office (FCDO) through its Manufacturing Africa program are also backing the fund.

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So, what exactly will this money do? The fund will work with African banks to support up to 20 SMEs that are having problems with their existing loans. This isn’t just about handing out cash-it’s about giving businesses a real chance to recover and grow. The fund will offer financing that’s flexible and tailored to each business’s needs, so they can get through tough times and come out stronger.

Right now, one in every four SME loans in Africa is under stress. That means a huge number of businesses are at risk of failing. But as Isha Doshi, co-founder of TLG Capital, points out, the spirit of entrepreneurship in Africa is still strong. “AGIF II is our answer to that call for partnership,” she says. “It’s about capital that understands context-financing that’s flexible, strategic, and backed by expert advice from McKinsey, BDO, ESS, and Ndarama Works. TLG AGIF II brings together both capital and capacity building.”

The fund will help businesses in all kinds of important sectors, like manufacturing, healthcare, agriculture, and telecoms. It will partner with banks in many African countries, making sure the money gets to where it’s needed most. IFC and TLG Capital raises $75M to help SMEs across Africa, and it’s clear that this is about more than just money-it’s about giving businesses the tools and support they need to succeed.

Small and medium businesses are the backbone of Africa’s economy. They make up about 90% of all businesses on the continent, but many struggle to get the financing they need. Only about 20% can get a bank loan, and there’s a huge gap-experts say African SMEs need about $330 billion more in financing than is currently available.

This new fund is part of a bigger effort by IFC to support businesses in developing markets. Since 2007, IFC’s Distressed Asset Recovery Program (DARP) has provided $9.2 billion globally, including $6 billion from partners. This has helped banks remove $46 billion in bad loans and supported over 21 million borrowers.

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The fund also aims to support the United Nations’ goals for least developed countries, focusing on things like gender equality, local ownership, sustainable industry, and good jobs. It’s about making sure that helping development and making good financial returns go hand in hand.

So, for small businesses in Africa that are struggling, this is a real lifeline. IFC and TLG Capital raises $75M in fund to help distressed SMEs, and with the right support, these businesses can turn their challenges into opportunities for growth and success.

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