Swedfund invests $5 million in Bridge Bank Microfinance to enhance financial inclusion in Côte D’Ivoire

Sweden’s Swedfund, a development finance institution (DFI), and African-based credit fund BluePeak Private Capital Fund have invested in West Africa-based Teyliom Finance. Swedfund contributed $5m out of the combined investment of $25m, which aims to strengthen financial assistance for micro, small and medium scale enterprises (MSMEs), particularly those owned by women in Côte D’Ivoire.

The funds will be managed by Teyliom Finance’s subsidiary, Bridge Bank Microfinance (BBM). Swedfund anticipates that the loan will enhance financial access for women, boost the growth of MSMEs, and subsequently generate income and employment opportunities in West Africa.

BBM has expressed its intention to narrow the market gap by tailoring its offerings specifically to women entrepreneurs and MSMEs led by women. This is part of an ongoing ambition to promote gender equality and empower women financially.

This investment by Swedfund in BBM marks its initial foray into the Ivorian market since it established a regional office in Abidjan, Cote d’Ivoire’s largest city, a year ago.

Kitanha Toure, the Head of Swedfund’s Abidjan office, told Impact Investor that the DFI is also committed to assisting in the development of a gender strategy. She explained that in markets like Côte d’Ivoire, MSMEs often struggle to secure funding, particularly those led by women. Responsible lending to such enterprises could stimulate private sector growth, trigger formal employment opportunities, and further the cause of gender equality.

Swedfund, Teyliom Finance and BBM have agreed on the implementation of a gender strategy, which will be backed and monitored by Swedfund throughout the loan duration. Previously, Swedfund has also invested in BluePeak, an alternative asset management firm. To ensure a higher availability of long-term capital for mid-sized firms and to aid the expansion of African businesses, Swedfund recently announced its commitment to investing in both BluePeak and Vantage Mezzanine Fund IV, another Africa-based credit fund.

Operating in 12 African countries across five sectors, Teyliom Finance is a subsidiary of the Teyliom Group. As part of their commitment to their clients, Swedfund’s portfolio companies are expected to adhere to client protection standards outlined by Cerise+SPTF. This collaboration between global organizations Social Performance Taskforce (SPTF) and French nonprofit Cerise aims to regulate and enhance social and environmental performance management.

During the course of the loan, BBM intends to continue prioritizing responsible lending and to certify its practices in client protection. Such fair practices, as per Toure, are crucial to the realization of positive developmental impact. The standards mandate fair and responsible handling of clients, particularly in sales and debt collection activities.

About two-thirds of Swedfund’s investments are made in sub-Saharan Africa in diverse sectors including energy and climate change, financial inclusion, sustainable enterprises, and food systems. Though historically this DFI has invested predominantly in East Africa, they aspire to increase their investment reach in both Francophone and Anglophone West Africa, facilitated by the newly opened office in Abidjan.

In addition, Swedfund assists the development of sustainable projects in OECD/DAC-recipient nations through its project accelerator facility. The focus in West Africa, as per Toure, mainly lies in renewable energy, green infrastructure, and sustainable transport. Recently, they have funded a feasibility study centred around the transformation of organic waste into biomethane, a potential green alternative for urban transportation in Dakar, Senegal.