FINANCING AFRICAN SMEs : Enko Capital Raises XAF 17 Billion from South Africa’s PIC to Strengthen Its Private Credit Fund

(LVDE) – The transaction, which secured a USD 30 million investment—equivalent to XAF 17 billion—aims to strengthen the Enko Impact Credit Fund (EICF), a credit fund created by Enko Capital to expand private lending across the continent and support African SMEs at a time of significant financing constraints. The initiative was led by Alain Nkontchou, head of Enko Capital, an African asset manager.

Enko Capital, a major player in asset management in Africa, recently announced a significant USD 30 million (XAF 17 billion) fundraising round made possible through a commitment from South Africa’s Public Investment Corporation (PIC). The PIC, one of the largest asset managers with over USD 204 billion under management, plays a key role in the expansion of private credit on the continent, in line with the growth agenda driven by Alain Nkontchou.

The PIC’s financing is intended to support the private credit fund Enko is structuring. This investment vehicle targets a final close of USD 150 million (XAF 85.45 billion) by 2026, with an upper limit of USD 200 million (XAF 113.9 billion). For Enko, this operation marks a major strategic milestone, reinforcing its ambition to establish private credit as a central component of its operating model in Africa.

The Enko Impact Credit Fund (EICF), designed to address the financing gap faced by African SMEs, provides dollar-denominated loans to companies with strong cash flows. Target sectors include agriculture, telecommunications, and renewable energy. “Promoting economic and financial inclusion is one of the pillars of our mission,” said Patrick Dlamini, CEO of the PIC. For Enko, this investment demonstrates institutional investors’ confidence in its ability to mobilize capital effectively.

This partnership with the PIC, which began in 2016, continues to strengthen. Alain Nkontchou emphasized its importance to the fund’s development. Last October, Enko Capital had already secured a first close of USD 100 million (XAF 65 billion) for the EICF, backed by renowned institutions such as British International Investment (BII) and the International Finance Corporation (IFC).

Through this fund, Enko Capital aims to build an African private credit ecosystem capable of attracting international capital to reduce the SME financing gap. The initiative is part of a broader effort to mobilize private capital for Africa’s economic development, complementing traditional financing deemed insufficient.

Mid-sized African SMEs face a massive financing shortfall estimated at USD 330 billion. Enko Capital seeks to help bridge this gap by providing flexible financial solutions aligned with investment cycles. Private credit offers several advantages, including shorter return horizons for investors. The PIC’s financing further supports the rise of private credit as a viable strategy to optimize investment return timelines.

As a result, Enko Capital is positioning itself as a leader in Africa’s private credit market, working to design solutions that meet the urgent needs of businesses while offering attractive returns to institutional investors. This momentum could reshape Africa’s economic landscape, fostering innovative financing and enabling SMEs to thrive in a competitive environment.

Tressy Chouente