Small and medium-sized enterprises (SMEs) are the backbone of Africa’s economy, yet they face a staggering $300 billion financing gap that hampers growth and economic development.
To address this critical challenge, the Swiss Investment Fund for Emerging Markets (SIFEM) has announced a $20 million investment in the Apis Growth Markets Fund III (AGMF III).
Managed by Apis Partners, AGMF III aims to raise $500 million to support high-growth businesses in Africa, South Asia, and Southeast Asia.
The fund’s core mission is to enhance financial inclusion by backing innovative technology-driven solutions that bridge the financing gap for SMEs.
Proven Track Record of Supporting Emerging Markets
Apis Partners brings substantial expertise to the table, drawing from the success of its two previous funds.
Its inaugural fund, Apis Growth I, mobilized $287 million, supporting companies like Jumo, a pan-African microcredit platform, and Tala, which provides loans based on mobile data analytics.
Building on this momentum, Apis Growth II raised $563 million in 2019, investing in transformative African enterprises such as Egyptian fintech MNT-Halan and South Africa’s digital payment firm Peach Payments.
Collectively, these initiatives have created approximately 9,000 jobs, with women accounting for one-third of these roles.
Scaling Financial Inclusion Through AGMF III
With AGMF III, Apis Partners seeks to expand its impact across emerging markets.
The fund has already secured interest from major institutional investors, including the International Finance Corporation (IFC), British International Investment (BII), Germany’s DEG, and Sweden’s Swedfund.
By fostering financial inclusion and supporting high-growth businesses, this initiative is poised to unlock the potential of SMEs, drive innovation, and generate sustainable economic opportunities across Africa and beyond.
As these investments gain momentum, they offer a promising pathway for addressing one of the continent’s most pressing economic challenges.
