Swedfund International AB, Sweden’s development finance institution (DFI), has committed $15 million to Lightrock Africa Growth Fund II, targeting technology-driven businesses seeking to expand access to essential services and create jobs across underserved African markets.

The investment will support growth-stage companies operating in sectors including financial services, health care and sustainable transportation, where limited access to capital continues to constrain business expansion.

Swedfund is targeting companies with established business models and the potential to scale solutions across multiple African markets.

Capital targets underserved markets

The investment aligns with Swedfund’s strategy to promote inclusive economic development while advancing its climate and digitalization priorities.

By backing businesses using technology to address gaps in essential services, the Swedish investor aims to strengthen financial inclusion, improve productivity and support more resilient local economies.

“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.

She said the investment would help companies scale solutions in finance, health care and sustainable transportation while supporting employment and attracting additional private capital.

Closing Africa’s service gaps

Access to financial and digital services, reliable energy and transportation remains limited across several African markets, particularly for underserved communities and small and medium-sized enterprises.

These gaps increase operating costs, restrict business growth and limit economic participation, creating opportunities for companies developing commercially viable solutions.

Swedfund said investments in such businesses are intended to improve access to essential products and services while supporting jobs with decent working conditions.

Its broader investment priorities include strengthening local economies, promoting gender equality, encouraging innovation and helping businesses meet international standards.

Lightrock expands investment reach

Lightrock, a London-headquartered global investment platform, backs technology-enabled companies developing solutions across three investment themes: People, Planet and Productivity.

Its investment strategies cover public and private businesses addressing challenges in areas including economic development, environmental sustainability and productivity.

The platform has $5.8 billion in assets under advice and more than 90 portfolio companies, according to the company.

Its Africa Growth Fund II provides capital to businesses with established operations and expansion potential, positioning it to support companies seeking to address structural gaps in essential services.

Swedfund’s Africa investment strategy

Established in 1979, Swedfund invests in developing markets with a mandate to reduce poverty through sustainable investments.

The institution prioritizes Africa, South and Southeast Asia, and Ukraine, using local market expertise to identify investment opportunities and support portfolio companies.

Swedfund is owned by the Swedish state and operates under the Ministry of Finance. Its funding comes from investment portfolio returns and capital injections from Sweden’s development cooperation budget, with investments focused on employment, essential services and climate resilience.