Enko Capital, a hedge fund dedicated to Africa, has successfully secured $100 million to support mid-sized lenders across the continent. This initiative targets the substantial financing gap that many medium-scale African enterprises face, as they often find it challenging to obtain funding through conventional channels.
As reported by Bloomberg, Enko Capital is broadening its financial offerings to African businesses, with a particular focus on fintech companies. The goal is to boost their operational capacity and help bridge the financial inclusion divide. Additionally, the fund seeks to highlight the lucrative prospects of private credit investments within Africa.
In this phase, Enko Capital plans to extend private credit denominated in US dollars to mid-sized firms operating in Sub-Saharan Africa. Key industries targeted include agriculture, telecommunications, manufacturing, renewable energy, and financial services.
Beyond the initial $100 million raised, Enko Capital aims to reach a final close of $150 million, with a maximum cap set at $200 million. Managing a portfolio worth $1.3 billion across debt, equity, and private equity, the firm is committed to delivering robust risk-adjusted returns to its investors.
The fund’s backers comprise notable entities such as British International Investment, the UK’s development finance institution, and the International Finance Corporation (IFC), part of the World Bank Group. Other investors include SICOM Global Fund Limited, European impact investors, as well as African pension funds and family offices.
Alain Nkontchou, Managing Partner at Enko Capital, elaborated on the fund’s mission, emphasizing its role in providing vital growth capital to mid-market enterprises. He highlighted that this effort not only addresses the critical financing shortfall faced by African businesses but also supports sustainable economic development across the region.
Enko Capital is joining a growing number of asset managers launching private credit funds aimed at emerging markets, capitalizing on the surge in financing opportunities within these sectors.
The IFC has committed to investing up to $25 million, representing 20% of the fund’s total commitments. The fund’s first closing, which took place in September 2025, exceeded expectations by raising $100 million against an initial target of $80 million.
To mitigate risks, the fund will employ various financial safeguards, including guarantees, insurance wraps, and collateral arrangements. It targets gross returns in the range of 14% to 16%, with cash yields between 9% and 11%, supplemented by additional upside potential.
Founded in 2008, Enko Capital is a specialist asset management firm focused on Africa, overseeing investments in debt, private debt, equity, and private equity across the continent. With $1.3 billion under management, the firm combines deep regional expertise with proven investment acumen.
Also Read: Funding: These African Startups raised at least $10 million in H1 2025.
Enko Capital’s $100 Million Fund: A Boost for African Fintechs
Mid-sized fintech companies in Sub-Saharan Africa stand to benefit significantly from this private credit initiative, which is designed to fuel their growth and expansion strategies. The fund offers fintechs access to Enko Capital’s expertise, helping them navigate the complexities of the financial ecosystem.
Mid-sized enterprises are typically defined by annual revenues ranging from $10 million to $1 billion and employ between 50 and 500 staff members. These companies have established proven business models that have successfully expanded their customer base and revenue streams.
Examples of fintechs in this category include Chipper Cash, Carbon, Paylater, Okra, Lidya, and TeamApt.
In a related development, the IFC, a key partner of Enko Capital, supported Senegalese digital health startup KERA in securing $10 million in funding in June.
Private lenders such as Blackstone Inc. and Apollo Global Management Inc. are driving record-breaking investment flows into emerging markets, signaling a robust appetite for financing in these regions.
By September, African startups had collectively raised $2.2 billion, with 58 companies securing $140 million in that month alone. Notably, funding levels in 2025 have already matched those of 2024, with three months remaining in the year.
The second quarter of 2025 remains the most lucrative period for startup funding, with $963 million raised between April and June. The third quarter follows closely, attracting $785 million in investments.
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