The International Finance Corporation (IFC) and TLG Capital have raised $75 million in the first close of the TLG Africa Growth Impact Fund II (AGIF II), delivering a major boost to small and medium-sized enterprises (SMEs) across Africa and helping to protect jobs on the continent.
Anchored by IFC’s Distressed Asset Recovery Program (DARP) with a commitment of up to $20 million, the fund also enjoys strong backing from Swedfund, Norfund, Bpifrance, and the UK Foreign, Commonwealth & Development Office (FCDO) through its Manufacturing Africa program. The newly launched AGIF II fund is designed to offer a financial lifeline to up to 20 African SMEs facing challenges with existing loan options.
The financing will be delivered in partnership with African banks, ensuring SMEs can access the local capital they need to overcome macroeconomic shocks, operational hurdles, or industry-specific headwinds. AGIF II will support businesses operating in critical sectors including manufacturing, healthcare, agriculture, and telecoms — areas considered vital to economic resilience and inclusive growth.
“Today, one in four SME loans in Africa is under stress,” said Isha Doshi, Co-Founder of TLG Capital. “Yet the entrepreneurial spirit across Africa remains unbroken. AGIF II is about more than just capital — it’s about providing flexible, strategic financing paired with advisory support from top firms like McKinsey, BDO, ESS, and Ndarama Works. We’re building both financial strength and operational capacity for African SMEs.”
Aliou Maiga, IFC’s Financial Institutions Group (FIG) Director for Africa, emphasized the broader impact of the initiative: “This fund is about mobilizing private sector funding to support financially stressed yet viable SMEs. These businesses are vital engines of job creation and essential service delivery. By supporting them, we’re investing in the future of African communities.”
AGIF II also aligns with key development goals, targeting the UN’s least developed countries and promoting gender equality, local ownership, sustainable industrialization, and decent work opportunities. The fund aims to prove that achieving strong social outcomes and generating competitive returns can go hand in hand.
UK Deputy High Commissioner in Lagos, Jonny Baxter, highlighted the specific benefits for Nigeria: “A strong manufacturing sector is crucial to driving growth across Africa. By supporting TLG Capital, we are promoting greater foreign direct investment into Nigeria, boosting job creation, wealth generation, and long-term economic prosperity.”
Since its founding in 2007, IFC’s DARP program has committed $9.2 billion globally, helping financial institutions offload over $46 billion in non-performing loans and enabling more than 21 million debtors to resolve their obligations. AGIF II builds on this legacy by directly addressing the financing needs of SMEs at a critical time.
TLG Capital, founded in 2012, is a leading alternative asset manager focused on Africa. With a track record of 41 investments and 30 exits across 20 African countries, TLG has established itself as a trusted partner for over 100 investors across North America, Europe, Asia, and Africa.
