IFC and TLG Capital have announced the first close of a new private credit fund, TLG Africa Growth Impact Fund II (AGIF II), with US$75 million raised.
IFC, through its Distressed Asset Recovery Program (DARP), is anchoring the AGIF II Fund with a commitment of up to US$20 million, which is also backed by Swedfund, Norfund, Bpifrance, and the UK Foreign, Commonwealth & Development Office (FCDO) through its Manufacturing Africa program.
The fund will provide financing in partnership with African banks to support up to 20 SMEs that face stress with their existing loan options. This financing offers them a local capital lifeline to weather macro shocks or other challenges they are facing, helping them emerge stronger. The fund is partnering with banks in many African countries and will support businesses across vital sectors, including manufacturing, healthcare, agriculture, and telecoms.
“Today, one in four SME loans in Africa is under stress,” said Isha Doshi, co-Founder of TLG Capital. “And yet, the entrepreneurial spirit is unshaken. AGIF II is our answer to that call for partnership. It’s about capital that understands context – financing that’s flexible, strategic, and backed by advisory horsepower from McKinsey, BDO, ESS, and Ndarama Works. TLG AGIF II brings together both capital and capacity building.”
