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Swedish development finance institution Swedfund has invested $15 million in the Lightrock Africa Growth Fund II, aiming to improve access to essential services, support economic growth and create jobs in underserved markets across Africa.

The investment will target growth-stage companies that use technology to expand and improve access to services such as financial solutions, healthcare, sustainable transport, digital services and energy. Swedfund said the funding is intended to help businesses with proven business models scale their operations and reach more people and small enterprises.

Access to essential services remains a significant challenge in many African countries, particularly for underserved communities and small and medium-sized enterprises (SMEs). Limited access to finance, transport, digital infrastructure and other key services continues to constrain economic development and business growth.

“Many growing businesses in Africa struggle to access the capital needed to expand services that people and small businesses rely on,” said Helen Hagos, Investment Director at Swedfund. “This investment will help businesses scale solutions in areas such as finance, healthcare and sustainable transport, contributing to job creation and stronger local economies. We also see potential for further private capital mobilisation.”

According to Swedfund, the investment is designed to promote financial inclusion, improve productivity and support sustainable economic development. The organisation also expects the commitment to attract additional private-sector investment into African growth companies.

The investment aligns with Swedfund’s broader strategy of supporting sustainable and inclusive economic development in underserved markets, while also advancing its priorities related to climate action and digitalisation.

Lightrock, the fund manager, is a global investment platform that backs technology-enabled companies addressing major social, environmental and economic challenges. Its investment strategies focus on businesses operating within the themes of People, Planet and Productivity.