• Enko Capital closes first round of $100 million for its private credit impact fund.
• British International Investment, IFC, and African pension funds among key investors.
• The fund targets mid-sized firms in key sectors across sub-Saharan Africa.

The pan-African asset manager Enko Capital announced on October 20, 2025, that it has raised $100 million in the first closing of its private credit impact fund, designed to support economic growth and job creation in Africa. The fund provides direct loans to companies rather than buying shares or bonds on financial markets.

Named Enko Impact Credit Strategy, the vehicle aims to raise $150 million by final closing, with a ceiling of $200 million. Initially expected to secure $80 million, this first round exceeded expectations, signaling growing investor interest in African private credit.

The round attracted major investors, including British International Investment (BII), the UK’s development finance institution; the International Finance Corporation (IFC); SICOM Global Fund Limited, a leading African asset manager; a European impact investor; African pension funds; and several family offices.

The fund will provide dollar-denominated financing to mid-sized companies in sub-Saharan Africa operating in non-cyclical sectors such as agriculture, telecommunications, manufacturing, renewable energy, and financial services. Its goal is to bridge the persistent financing gap faced by African SMEs, often underserved by local banks, while demonstrating the commercial potential of private credit on the continent. Around ten companies across several sub-Saharan countries are expected to benefit.

“Our commitment to the Enko Impact Credit strategy 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.,” said Leslie Maasdorp, Managing Director of BII. Alain Nkontchou, Managing Partner at Enko Capital, added that “this first closing demonstrates investors’ growing confidence in Africa’s sustainable development through private financing.”

According to Ecofin Agency, the fund targets a gross dollar return of between 14% and 16%, of which 9% to 11% will come from cash interest, with the remainder generated through additional valuation mechanisms such as equity participation, repayment bonuses, or performance clauses built into the financing structures.

Founded in 2008 by brothers Alain and Cyrille Nkontchou, Enko Capital manages $1.3 billion in assets. Based in London and operating in Johannesburg and Abidjan, the group has already made several successful exits through its Enko Africa Private Equity Fund, including Netis Holding (telecoms), Law Union Rock Insurance (insurance), and Madison Financial Services (Zambia).

The initiative is part of a broader effort to structure Africa’s still nascent but fast-growing private credit market, supported by international development financiers. For Mohamed Gouled, Vice President for Industries at IFC, “Expanding access to finance for mid-sized companies is critical to accelerating inclusive growth across Africa.”

Once dominated by bank and multilateral financing, Africa’s private credit market is gradually emerging as a new asset class for institutional investors. This segment, still embryonic five years ago, now attracts major development financiers—BII, IFC, Proparco, and DFC—as well as several independent African managers.

Its key advantage lies in addressing the chronic financing shortfall of mid-sized companies, often excluded from bank credit due to insufficient guarantees or short loan maturities.

According to the African Private Equity and Venture Capital Association (AVCA), private debt in Africa grew by about 14% in 2024, driven by portfolio diversification and rising institutional appetite for yield. However, the continent still accounts for only around 0.3% of the global private credit market.

Globally, the sector continues to expand rapidly, exceeding $3 trillion in assets under management in 2024, according to the Alternative Investment Management Association (AIMA). Morgan Stanley estimates the figure at $1.5 trillion at the start of 2024 and projects $2.6 trillion by 2029. The Bank for International Settlements (BIS) notes that the volume of loans issued by private credit funds rose from about $100 billion in 2010 to more than $1.2 trillion in 2024, underscoring the rise of this asset class amid the decline of traditional bank lending.