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IFC and TLG Capital Launch $75M Fund to Help African SMEs Stay Afloat

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To help small and medium-sized businesses in Africa access the financing they need, the International Finance Corporation (IFC) and investment firm TLG Capital have launched a new private credit initiative.

The fund, called the TLG Africa Growth Impact Fund II (AGIF II), has secured $75 million in its initial round of funding.  
 
IFC, through its Distressed Asset Recovery Program (DARP), is contributing up to $20 million to the fund.
 
Several development finance institutions, including Swedfund, Norfund, Bpifrance, and the UK’s Foreign, Commonwealth & Development Office (FCDO), support this investment via the Manufacturing Africa program.

AGIF II aims to assist around 20 African SMEs that are struggling with existing loans.
 
By working with local banks, the fund will offer much-needed financing to help these businesses recover from financial difficulties, continue operations, and protect jobs.
 
The focus will be on key industries such as manufacturing, healthcare, agriculture, and telecommunications.

According to Isha Doshi, Co-Founder of TLG Capital, “One in four SME loans in Africa is under stress, yet the drive to build and grow businesses remains strong.”
 
She noted that the fund offers more than just money—TLG AGIF II also provides expert guidance from partners like McKinsey, BDO, ESS, and Ndarama Works.

Aliou Maiga, Director of IFC’s Financial Institutions Group for Africa, emphasized that the fund is designed to attract more private investment.
 
He said it would boost SMEs that are critical to community development by offering jobs and essential services.

The fund also aligns with the UN’s goals for least developed countries. It promotes gender equity, local ownership, and sustainable growth—proving that meaningful development and solid financial returns can go together.

UK Deputy High Commissioner to Lagos, Jonny Baxter, added that strengthening manufacturing is crucial for Africa’s economic progress.
 
“Backing TLG Capital helps bring more investment to Nigeria and beyond. It means more jobs, increased wealth, and a better future for all,” he said.

IFC’s DARP has been active since 2007, supporting the resolution of distressed assets and helping businesses restructure.
 
So far, it has committed $9.2 billion globally and helped banks clean up over $46 billion in bad loans, benefiting over 21 million borrowers.

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