Enko Capital secures $100 million first close for Africa-focused private credit fund

Enko Capital, an Africa-focused alternative asset manager with $1.3 billion in assets under management, has announced the first close of its new impact-focused private credit fund, raising $100 million (around R1.7 billion) toward a $150m target, with a hard cap of $200m at final close.

The fund attracted commitments from several high-profile investors, including British International Investment (BII), the UK’s development finance institution; the International Finance Corporation (IFC), a member of the World Bank Group; SICOM Global Fund Limited; a leading European impact investor; and a number of African pension funds and family offices.

The Enko Impact Credit Fund will provide US dollar-denominated private credit to mid-market companies across Sub-Saharan Africa, targeting established, cash-generating businesses in resilient sectors such as agriculture, telecommunications, manufacturing, renewable energy, and financial services.

By delivering flexible, tailored financing to well-managed enterprises often underserved by traditional banks, the fund aims to help close the region’s structural credit gap and showcase the commercial viability of private credit in Africa.

Leslie Maasdorp, CEO at BII, said Monday the institution’s participation underscores its confidence in the growth potential of Africa’s private credit market.

“Our commitment to the Enko Impact Credit Fund reflects BII’s belief in the commercial potential of private credit in Africa and its role in closing the financing gap for mid-sized businesses," Maasdorp said.

"By anchoring the fund’s first close, our aim is to send a strong signal to other investors, attract additional capital and help build a viable private credit market that supports businesses critical to economic growthin Africa.”

Enko Capital managing partner, Alain Nkontchou, said the milestone demonstrates growing investor confidence in Africa’s sustainable development through private credit.

“The successful first close of Enko’s flagship private credit strategy underscores growing investor confidence in Africa’s sustainable development through private credit," Nkontchou said.

"With the support of leading international institutional development and impact investors; and local partners, the Fund is strategically positioned to offer customised capital solutions to high-quality mid-market SMEs, unlocking growth, supporting job creation, and advancing sustainable development, while generating compelling risk-adjusted returns for our investors." 

He added that the close also marks the first investment under a new partnership between BII and the IFC, aimed at deepening collaboration to promote impactful and sustainable growth across the continent.

Mohamed Gouled, IFC vice president of industries, said the initiative will help strengthen access to finance for mid-sized African firms.

“Expanding access to finance for mid-sized companies is critical to acceleratinginclusive growth across Africa," Gouled said.

"IFC’s support for the Enko Impact Credit Funddemonstrates IFC’s commitment to channelling longer tenor and flexible fundingto African businesses for growth and job creation. Through this partnership, wewill support businesses across a range of sectors, from agribusiness to telecoms,that are critical for sustained economic growth.”

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