Four European development finance institutions ( DFIs ) – British International Investment ( BII ), Holland’s FMO, Sweden’s Swedfund and the Swiss Investment Fund for Emerging Markets ( SIFEM ) – have jointly committed US$80 million to BluePeak Private Capital Fund II ( BPCF II ), a pan-African private credit ( PC ) fund focused on addressing the financing needs of mid-sized businesses in Africa, with an emphasis on environmental, social and governance ( ESG ) best practices and meaningful impact.

Africa’s mid-market segment remains critically underfunded, notes Swedfund, with a persistent financing gap constraining the growth of otherwise viable businesses. These businesses often lack access to traditional financing due to insufficient collateral or limited credit history despite their potential to generate jobs, expand access to essential services, and strengthen local value chains.

BPCF II will invest in strategic sectors, including food manufacturing, pharmaceuticals, industrial packaging and financial services – industries with the potential to deepen local value chains and foster industrial clusters. With a strong focus on gender inclusion, the fund is 2X Challenge qualified, promoting women’s economic empowerment as a core objective.

As well, the fund integrates sustainability considerations throughout its investment process, Swedfund shares, prioritizing resilience, inclusive growth and long-term value creation. Through this partnership, the DFI consortium aims to support BPCF II in providing capital to African businesses that demonstrate both commercial viability and the potential to deliver measurable development outcomes.

The commitment is a strong signal of support from European DFIs for private credit solutions in Africa’s underserved mid-market. The DFIs have committed US$30 million ( BII ), US$15 million ( FMO ), US$20 million ( Swedfund ) and US$15 million ( SIFEM ), respectively.

“Businesses in Africa need various types of financing to grow, but they often struggle to access funding, especially on flexible terms that meet their specific needs,” states Chris Chijiutomi, BII’s managing director and head of Africa. “This partnership extends our reach and provides growth financing to empower businesses in Africa. Its success will serve as a model to attract more private capital.”