Norfund has announced a substantial investment of $7.5 million in the Inside Equity Fund II, a private equity fund dedicated to supporting small and medium-sized enterprises (SMEs) in Southeast Africa. This fund is managed by Inside Capital Partners and aims to provide essential financial backing to businesses that contribute to job creation, waste reduction, access to clean energy, and gender equality.
With this latest investment, the total capital of Inside Equity Fund II has now reached at least $62 million. This increase in capital significantly enhances the fund’s capacity to offer long-term financing to businesses that are pivotal in driving economic transformation in the region. The fund’s initial investment focus will be on Madagascar, Zambia, and Mauritius, with potential opportunities for expansion into Mozambique and Tanzania—countries where the growth of SMEs is crucial for economic resilience.
Jérôme Lagesse, managing partner at Inside Capital Partners, emphasized the transformative power of investment, stating, “At Inside, we view investment as a powerful catalyst for transformation. By welcoming Norfund as a limited partner, we are deepening our commitment to sustainable growth in Africa’s most underfinanced markets and leveraging our collective expertise to drive meaningful change. Together, we are channeling capital into high-impact SMEs, creating lasting economic opportunities and advancing sustainable development across the region.”
Access to finance remains one of the most significant barriers for SMEs in Africa’s least developed countries. Many businesses with strong strategic and growth potential face challenges in securing the necessary capital to scale, particularly in high-risk markets where private equity funding is limited. Inside Equity Fund II addresses this financing gap by targeting one of the most challenging segments of SMEs, providing crucial funding to businesses capable of driving economic transformation.
The fund prioritizes investments in sectors that contribute to sustainable development, such as recycling, renewable energy, and sustainable construction, thereby fostering both economic and environmental progress.
This partnership builds on the success of Inside Capital Partners’ first fund, which supported high-impact businesses across the region. The investment was formalized in Lusaka, Zambia, reinforcing the commitment to financing SMEs that strengthen local economies and create opportunities in underserved communities. Looking ahead, we anticipate that Inside Capital Partners will continue its vital work in driving economic growth and sustainable impact in Africa’s least developed countries.
