The Overseas Private Investment Corporation (OPIC), the US Government’s development finance institution, has approved up to $200m in new financing to two Africa-focused funds.

OPIC has approved up to $100m in financing to Apis Growth Fund II, managed by Apis Partners.

This private equity fund is focused on financial inclusion and will make investments in financial services across Africa and Asia in growth regions with large populations that have historically been underserved by traditional banking and other basic financial services. 

OPIC’s support will help provide opportunities to large and widely dispersed low income populations and small and medium-sized enterprises in these regions. 

The fund seeks to use business models facilitated by the internet and technological innovations to accelerate access to financial services for individuals and SMEs, while decreasing the cost of service delivery.

In addition, the US DFI has approved up to $100m in financing to Helios Credit Partners, managed by Helios Investment Partners. 

This fund seeks to provide senior secured and second-lien loans to companies in Sub-Saharan Africa that require capital for growth, acquisitions or capital expenditures, concentrating primarily on senior credit to small and mid-sized companies. 

According to the World Bank, availability of bank lines of credit to African companies is severely limited and only 20% of Sub-Saharan African corporations have access to bank loans or lines of credit. 

OPIC’s support will provide catalytic access to capital for companies that face difficulty obtaining private financing and will have a developmental impact by investing in a variety of sectors to include energy, financial services, transportation, logistics, technology, and telecommunications.

Elizabeth L. Littlefield, OPIC President and CEO, said: “In Sub-Saharan Africa, we are supporting a project that will help address credit constraints that local businesses face. And across Asia and Africa, we are supporting a project that will focus on financial inclusion to target low income populations and small and medium sized businesses that are historically underserved by traditional financial services. We look forward to the long-term positive impact that, together, these projects will have for the people living in these regions.”