• IFC considers up to $8 million in Aruwa Fund II
• $50 million fund targets Nigerian, Ghanaian SMEs
• Focus on women-led firms in underserved sectors

The International Finance Corporation (IFC), the World Bank Group's private sector division, is considering investing up to $8 million in Aruwa Capital Fund II (ACF II), a private equity vehicle targeting small and medium-sized enterprises (SMEs) in Nigeria and Ghana, according to information published by the institution. The fund is expected to invest primarily in Nigeria while allocating up to 20% of its commitments to Ghana.

Currently awaiting approval, the project is scheduled to be submitted to the board of directors on March 11, 2026. The fund, managed by AR Capital, a company registered in Mauritius, is targeting a size of $50 million with a cap set at $60 million. The IFC's proposed investment would be capped at 20% of total commitments.

Aruwa Capital Fund II plans to make initial investments of between $1 million and $3 million in growth-stage SMEs. It focuses on companies that strongly promote women's inclusion, particularly in the consumer goods, clean energy, financial services and healthcare sectors.

According to the IFC, the project could benefit from the IDA21 Concessional Capital Window, totaling $3 million in the form of subordinated co-investment. This blended finance mechanism aims to mobilize private capital toward segments deemed risky or underserved.

The private equity market for early-stage SMEs remains limited in West Africa, the institution notes. Aruwa Capital, a Nigeria-based manager led by a female team, targets high-potential companies often overlooked by traditional investors.

The concessional component of the co-investment is estimated at 0.9% of the total project cost, estimated at $60 million.

Fiacre E. Kakpo