Enko Capital, a hedge fund specializing in African markets, has successfully raised $100 million to empower medium-sized lenders throughout the continent. This fund addresses the ongoing financing hurdles that mid-tier African businesses often face when attempting to secure traditional bank loans.
According to Bloomberg, Enko Capital is expanding its financial support to African enterprises, with a strong emphasis on fintech firms. The initiative aims to enhance their operational capabilities and contribute to closing the financial inclusion gap. Moreover, the fund highlights the attractive investment opportunities within Africa’s private credit market.
In this current phase, Enko Capital intends to provide US dollar-denominated private credit to mid-sized companies across Sub-Saharan Africa. The sectors prioritized include agriculture, telecommunications, manufacturing, renewable energy, and financial services.
Beyond the initial $100 million raised, Enko Capital is targeting a final close of $150 million, with an upper limit of $200 million. Managing a diverse portfolio valued at $1.3 billion across debt, equity, and private equity, the firm is dedicated to delivering strong risk-adjusted returns for its investors.
The fund’s investors include prominent organizations such as British International Investment-the UK’s development finance institution-and the International Finance Corporation (IFC), a member of the World Bank Group. Additional contributors encompass SICOM Global Fund Limited, European impact investors, as well as African pension funds and family offices.
Alain Nkontchou, Managing Partner at Enko Capital, explained that the fund is structured to inject essential growth capital into mid-market companies. He emphasized the fund’s mission to close the significant financing gap faced by African businesses while promoting sustainable economic development.
Enko Capital is also collaborating with other asset managers launching private credit funds focused on emerging markets, leveraging the growing financing opportunities in this space.
The IFC has pledged up to $25 million, accounting for 20% of the fund’s total commitments. The fund’s inaugural closing in September 2025 surpassed expectations by raising $100 million, exceeding the initial $80 million target.
To manage risk, the fund will utilize financial instruments such as guarantees, insurance wraps, and collateral agreements. It aims for gross returns between 14% and 16%, with cash yields ranging from 9% to 11%, alongside potential additional upside.
Established in 2008, Enko Capital is a specialist asset management firm concentrating on Africa, managing investments across debt, private debt, equity, and private equity sectors. With $1.3 billion in assets under management, the firm combines extensive regional expertise with a strong track record in investment.
Enko Capital’s $100 Million Fund: Empowering African Fintech Growth
This private credit fund offers substantial support to mid-sized fintech companies in Sub-Saharan Africa, facilitating their expansion and scaling efforts. By tapping into Enko Capital’s deep industry knowledge, these fintechs can better navigate the complexities of the financial landscape.
Mid-sized businesses typically report annual revenues between $10 million and $1 billion and employ between 50 and 500 people. These firms have demonstrated successful business models with growing customer bases and revenue streams.
Examples of fintech companies in this category include Flutterwave, Paystack, Chipper Cash, Okra, Payhippo, and Kuda.
In a related move, the IFC, a key partner of Enko Capital, helped Senegalese digital health startup KERA secure $10 million in funding in June.
Private equity giants like Blackstone Inc. and Apollo Global Management Inc. are fueling unprecedented investment activity in emerging markets.
By September 2025, venture capital funding for African startups reached $2.2 billion, with 58 startups raising a combined $140 million in that month alone. Remarkably, the total funding for 2025 has already matched the entire amount raised in 2024, with several months still to go.
The second quarter of 2025 was the most lucrative, attracting $963 million in startup investments between April and June, followed closely by the third quarter, which saw $785 million raised.