TLG Africa Growth Impact Fund II Closes $120m to Support African SMEs
The TLG Africa Growth Impact Fund II (AGIF II) has reached a $120m second close, marking a significant boost for private credit solutions targeting African small-and-medium-sized enterprises (SMEs), according to an official announcement on June 29, 2026. The fundraising includes new investors and increased commitments from existing backers, including Proparco, Calvert Impact Capital, and Swedfund, as reported by the fund.
Key Investors and Fund Structure
The second close of AGIF II, led by Proparco and Calvert Impact Capital, includes 22 investors, with 48% of committed capital sourced from outside the DFI community, signaling growing confidence in African private credit as an institutional asset class. Swedfund, which has increased allocation to AGIF II, joined as a strategic partnership with the UK FCDO through its Manufacturing Africa program.
Impact on African SMEs
Since its $75m first close in April 2025, AGIF II has invested in nine SMEs across seven countries and seven sectors, with debt facilities ranging from $5m to $15m to each company. The fund prioritizes underserved markets, with 59% of total capital invested in UN Least Developed Countries and an additional 19% of total capital invested in World Bank Conflict-affected Situations. These investments support 850 jobs across companies in Guinea, Zambia, and other regions, according to the fund’s data.
The BOMA Approach and Risk Mitigation
AGIF II’s proprietary BOMA (Bank Originated & Mitigated Assets) model involves direct loan origination through local African banks, which back each loan with a guarantee covering 100% of the principal. This structure extends loan tenors beyond typical bank offerings while transferring credit risk to regulated financial institutions, as explained by Tibor Asboth, Head of Africa and Middle East Private Equity at Proparco.
Quotes from Stakeholders
Calvert Impact’s Maya Burney emphasized TLG’s “unique ability to innovate whilst providing meaningful downside protection,” while Africa Re’s Dr. Corneille Karekezi highlighted the fund’s scalable solution to private credit challenges in Africa. IFC’s Aliou Maiga noted that AGIF II’s approach “confirms TLG’s commitment to mobilize capital to support the sustainable growth of SMEs and preserve jobs in Sub-Saharan Africa.”
Future Goals and Challenges
The fund aims to align commercial returns with development outcomes, targeting gender equality, sustainable industrialization, and decent work. It qualifies for the Gender 2X Challenge and the ImpactAssets 50 in 2026.