IFC, TLG Capital announce US$75m first close of African private credit fund to support SMEs

To support small and medium sized enterprises in Africa—and to protect jobs at those businesses—IFC and TLG Capital announced the first close of a new private credit fund, TLG Africa Growth Impact Fund II (AGIF II), with US$75m raised.

IFC, through its Distressed Asset Recovery Program (DARP), is anchoring the AGIF II Fund with a commitment of up to US$20m, 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.”

“This initiative incorporates a strong mobilization component that aims to leverage private sector funding to enhance the growth of financially stressed but sustainable SMEs,” said Aliou Maiga, IFC’s Financial Institutions Group (FIG) Director for Africa. “The fund will support local businesses that provide job opportunities and vital goods and services, contributing to the inclusive growth of the communities where these companies operate.”

The fund targets the UN’s least developed countries, promoting gender equality, local ownership, sustainable industrialisation and decent work—aiming to demonstrate that strong development outcomes and strong returns can go hand in hand.

UK Deputy High Commissioner in Lagos, Mr. Jonny Baxter added: “A strong manufacturing sector is key to driving economic growth and industrialisation in Nigeria and across Africa. By supporting TLG Capital, we’re fostering greater capital flows into Nigeria, which in turn supports job creation, generates wealth and secures a prosperous future. TLG Capital is one of the key partners we are working with to improve foreign direct investments that support manufacturing in Nigeria, which will have a lasting positive impact on both our economies.”

IFC’s DARP focuses on the acquisition and resolution of distressed assets, the refinancing and roll-over risk of viable entities, and the restructuring of SMEs. Since it was established in 2007, DARP has committed US$9.2bn globally, including the mobilisation of US$6bn. This has enabled banks to offload over US$46bn of non-performing loans, while helping over 21 million debtors resolve their obligations.

About TLG
TLG Capital is a leading alternative asset management firm specialising in African markets. TLG has completed 41 investments and 30 exits in 20 African countries since inception in 2012. The TLG Africa Growth Impact Fund II (AGIF II) is a private credit fund that builds on the strategy of Africa Growth Impact Fund I, focused on small-and-medium enterprises in Africa. TLG is trusted by more than 100 institutional and individual investors across the North America, Europe, Asia, and Africa.

About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record US$56bn to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet.

Source: IFC