Cauris Investment Management, a specialist investment firm focused on financing technology-enabled lenders in emerging markets, is targeting up to $100 million for a new fund aimed at expanding access to credit for small businesses and mobility entrepreneurs across Africa, with the International Finance Corporation proposing to invest up to $7.5 million.

According to an investment disclosure dated October 15, 2026, the IFC, the World Bank Group’s private-sector investment arm, has proposed providing senior debt financing to Cauris Finance’s Third Wave Fund LLC, which will channel capital through fintech lenders to micro, small and medium-sized enterprises and gig-economy workers across the continent. The investment remains pending approval.

The investment remains pending approval, with a projected board date of November 30, 2026. The fund targets a size of up to $75 million, subject to a hard cap of $100 million.

Cauris targets underserved African businesses

Under the proposed arrangement, IFC would provide a senior loan of up to $7.5 million, or 10% of the fund’s size, whichever is lower. The five-year loan would include a grace period of up to 48 months, followed by 12 months of amortisation. The fund’s senior debt tranche will account for 60% of its capital, supported by 30% in mezzanine debt and a 10% catalytic first-loss tranche designed to absorb initial losses and protect senior lenders.

Cauris plans to allocate approximately 60% of the fund to fintech lenders serving MSMEs, particularly businesses underserved by traditional financial institutions. The remaining 40% will target mobility-focused fintech companies offering vehicle lease-to-own financing to entrepreneurs and gig-economy workers.

The fund will operate across East, West and Central Africa, targeting markets including Kenya, Ghana, Uganda, Côte d’Ivoire, Rwanda, Tanzania, Senegal and Cameroon. More than 25% of its MSME investments are expected to support women-led enterprises.

Technology underpins lending strategy

Founded in 2021, Cauris Investment Management specialises in senior secured lending to technology-enabled lenders that provide productive-use capital to microentrepreneurs and small businesses in emerging markets.

The fund will use Cauris’ proprietary DeepDive platform to improve transparency into underlying loan portfolios, helping investors assess credit risks and monitor investments in underserved lending markets.

The initiative comes as African fintech companies face funding constraints, while smaller businesses continue to encounter significant barriers to working capital and affordable credit.

IFC seeks to mobilise additional capital

IFC expects its proposed investment to attract other investors and development finance institutions, expanding long-term funding for fintech lenders serving underserved African markets.

Cauris Management co-founder Noel Yawo Eklo has led the firm since 2002, overseeing its growth from an initial €8 million fund to three funds managing €83 million. He has structured numerous investment and divestment transactions and served on the boards or strategic committees of companies including Celtel Burkina, BOA-BF and AFG/BACI.

Headquartered in Oakland, California, Cauris has team members in Kenya and Burkina Faso. Its Third Wave Fund aims to expand credit access for African small businesses and mobility entrepreneurs while attracting more commercial capital into the continent’s fintech lending sector.