Mobilising local capital for Africa’s missing middle

Mobilising local capital for Africa’s missing middle

Our partnership with one of Africa’s largest asset managers is improving access to finance for underserved businesses

 

Africa’s SME financing gap stands at an estimated $331 billion, and it is still widening. Mid-sized businesses sit in a difficult position, as they are considered too large for microfinance, yet too small or too risky for most commercial lenders because they lack the collateral, credit history or scale that lenders want. Without access to long-term growth capital, their potential goes unrealised.

In June 2025, we formed a strategic partnership with South Africa’s Public Investment Corporation (PIC), Africa’s largest asset manager with over R3 trillion under management. Its goal is to channel domestic institutional capital into high-impact businesses across the continent, reducing dependence on foreign funding and strengthening local investment ecosystems. In November 2025, we made our first joint investment, into the Enko Impact Credit Fund, a private credit fund providing bespoke financing to mid-sized African businesses in real economy sectors, including manufacturing, renewable energy and financial services.

By pairing our own capital with PIC’s domestic institutional resources, the partnership is already demonstrating the value of our mobilisation strategy. Through strategic partnerships and structured expertise, we can help to crowd in local capital, back underserved businesses and build more resilient investment ecosystems across Africa.

Investment name: Public Investment Corporation (PIC)
Location: Africa

$331bn

funding gap faced by Africa’s SMEs

We are excited to be part of the first transaction under the BII-PIC landmark partnership to advance vital investments across Africa.”

Alain Nkontchou

Managing Partner, Enko Capital

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