Norfund: High-Impact Investment in SME Fund in Africa

Norfund, a private equity firm, has announced a $7.5 million investment in Inside Equity Fund II L.P., a private equity fund focused on supporting small and medium-sized enterprises (SMEs) in underfinanced and least developed markets in Southeast Africa. This investment increases the fund's total capital to $62 million, enhancing its capability to provide long-term financing to businesses that drive job creation, waste reduction, access to clean energy, and gender equality. The fund aims to address the financing gap for SMEs in these regions by targeting sectors that contribute to sustainable development, such as recycling, renewable energy, and sustainable construction. The fund will invest initially in Madagascar, Zambia, and Mauritius, with potential expansion into Mozambique and Tanzania. This move strengthens Norfund's commitment to financing SMEs that bolster local economies and create opportunities in underserved communities across the region.