In a significant vote of confidence for Africa’s underserved mid-market, four leading European Development Finance Institutions (EDFIs)—British International Investment (BII), FMO (the Dutch entrepreneurial development bank), Swedfund, and the Swiss Investment Fund for Emerging Markets (SIFEM)—have jointly committed $80m to BluePeak Private Capital Fund II (BPCF II).

The fund is dedicated to providing growth capital to mid-sized businesses across Africa, prioritizing environmental, social, and governance (ESG) best practices and measurable impact.

With $30m from BII, $15 million from FMO, $20m from Swedfund, and $15m from SIFEM, this collective $80m investment marks not only a strong endorsement of BluePeak’s strategy but also a broader commitment to expanding the private credit ecosystem across Africa.

The fund close also highlights the increasing alignment and collaboration among EDFIs in their support for scalable and impactful private sector development initiatives.

Africa’s mid-sized businesses, often referred to as the “missing middle,” remain critically underfunded.

Despite their potential to generate employment, expand access to essential services, and reinforce local supply chains, many of these businesses lack access to traditional financing due to insufficient collateral or limited credit history.

BPCF II seeks to close this financing gap by providing flexible credit solutions tailored to the growth needs of these enterprises.

The fund will invest in strategic sectors such as food manufacturing, pharmaceuticals, industrial packaging, and financial services—industries that play a key role in strengthening domestic value chains and fostering industrial development across the continent.

“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,” said Chris Chijiutomi, Managing Director and Head of Africa at British International Investment.

“That’s why we are delighted to collaborate with our European Development counterparts as a consortium to support BluePeak’s Fund II and fuel the growth of private credit as an asset class. 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.”

BluePeak Private Capital Fund II is 2X Challenge qualified, underscoring its commitment to advancing gender inclusion and promoting women’s economic empowerment.

The fund’s strategy is aligned with sustainable development goals by prioritizing resilience, inclusive growth, and long-term value creation across all investment decisions.

Jakob Larsson, Senior Investment Manager at Swedfund, highlighted the development impact of the investment: “This investment supports Swedfund’s goal of reducing poverty by enabling businesses to grow sustainably and increasing access to essential services and capital. We invest to increase financial inclusion and strengthen the private sector’s ability to create jobs, especially for women and young people.”

FMO, which has partnered with BluePeak previously, emphasized the importance of this renewed collaboration. “FMO is pleased to be partnering again with BluePeak to provide much-needed growth capital to African entrepreneurs, supporting our mission of inclusive economic development across the continent,” said Annemarie van Duijn, Manager Private Equity Global Funds at FMO.

“There is a clear funding gap for businesses that seek to retain ownership while still requiring growth financing to expand their operations. Through this partnership, we not only address this gap, but also strengthen our private capital strategy at FMO by collaborating with an experienced local partner capable of financing sustainable and inclusive growth across Africa.”

Anthony Mwangi Njoroge, Principal and Co-Head Africa Fund of Funds at responsAbility, SIFEM’s portfolio manager, added: “Investing in resilient, growth-oriented businesses is essential to driving long-term economic development. SIFEM’s commitment to BluePeak Fund II reflects our mission to catalyze inclusive growth, strengthen the private sector across Africa, support sustainable job creation, and empower local entrepreneurs.”

Walid Cherif, Managing Partner at BluePeak, welcomed the partnership: “We are proud to have the support of leading European DFIs as we continue to scale our mission of backing resilient and defensive businesses across high-growth markets. Their commitment is a strong vote of confidence in our strategy to combine performance with impact, and it plays a critical catalytic role in mobilizing the capital needed to close the significant funding gap across the continent. Raising Fund II in less than four years since the first close of Fund I is a testament to sustained investor confidence driven by continued value creation and strategic positioning in the market.”

As global development finance institutions look for more targeted and effective ways to foster inclusive growth, the backing of BluePeak Private Capital Fund II signals a growing recognition that private credit—when deployed with discipline and impact focus—can play a transformative role in unlocking Africa’s economic potential.