Aavishkaar Capital, a leading impact investment fund manager, has secured a strategic investment of USD 40 million (Ksh5.1 billion) from the Japan International Cooperation Agency (JICA) into its Global Supply Chain Support Fund (GSCSF) to boost access to finance for small and medium-sized enterprises (SMEs) across Africa and Asía.
The decision was announced in a speech by Japanese Prime Minister Shigeru Ishiba, at the “Economic Partnership in Indian Ocean – Africa Forum”.
The forum was convened in conjunction with the TICAD 9 (Tokyo International Conference on African Development), which is being held in Yokohama, Japan, throughout the week. The fund is being managed by Aavishkaar Capital , a leading impact investment group which is headquartered in Mumbai, India.
Kenya’s SMEs contribute over 40% of GDP and employ over 80% of the workforce, yet they face a funding gap of more than Ksh 1.3 trillion annually. This partnership will enable Aavishkaar Capital to address these structural financing challenges by offering flexible, impact-driven credit to export-oriented Kenyan businesses and other enterprises across emerging markets.
Through the GSCSF, Aavishkaar Capital provides financing solutions to private companies operating in critical international supply chains, including agriculture, food processing, and manufacturing — sectors where Kenyan exporters are increasingly seeking global competitiveness.
The fund is designed to empower SMEs to scale production, meet export demand, and strengthen resilience in an evolving global economy.
Utilizing JICA’s upcoming contribution to the Fund, Aavishkaar Capital as a fund manager provides credits to private corporates operating in Africa, India and other parts of emerging Asia.
These investors are involved in a variety of international business supply chains, including those in agriculture, food processing and manufacturing. JICA’s commitment aims to support small and medium-sized enterprises (SMEs) whose businesses have a significant social and environmental impact.
By investing in the Global Supply Chain Support Fund, JICA will help Aavishkaar Capital expand into the emerging markets of Africa and Asia, after India, thereby contributing to the development of the wider Indian Ocean region and the global supply chain.
The Global Supply Chain Support Fund (GSC Support Fund) set up in partnership with KfW, a German state-owned development bank, and is the 8th Fund of Aavishkaar Capital that aims to invest in emerging corporates across the global south, driving them toward global success through bespoke non-dilutive capital solutions.
The fund invests in businesses that operate across global supply chains and in sectors having significant climate and social impact.
The GSC Support Fund has already made 8 investments across Asia and Africa.
Speaking at the event, Mikio Hataeda, JICA’s Senior Vice President, said: “We are honoured to invest in the Aavishkaar Fund, with which JICA has a long-standing relationship and has achieved significant impact in India.
“By investing in the fund and entering a new chapter of collaboration with the Aavishkaar Group, we hope to elevate the well-established India-Japan partnership and further strengthen our commitment to impact investment in Africa and Asia.”
Talking about the investment, Vineet Rai, Founder, Aavishkaar Group and Managing Partner, Aavishkaar Capital who also delivered a short speech at TICAD, said, “We are honoured to welcome JICA’s strategic investment in our Global Supply Chain Support Fund targeting the global south.
“This collaboration builds upon a decade of our relationship and reflects the long-standing tradition of Indo-Japan economic cooperation. Together, we are committed to advancing shared values of sustainable growth and transformative opportunities for SMEs across the African & Asian continent and look forward to a long and an impactful alliance.”
Ashish Patel, Managing Partner-Credit at Aavishkaar Capital, said, “We are delighted and honored to partner with JICA. JICA’s participation in the Global Supply Chain Support Fund significantly strengthens our mission to support the growth of SMEs across Africa, directly addressing the critical shortage of debt funding in this sector.
We believe that core and mainstream sectors such as agriculture and essential services have been overlooked and present significant opportunities for growth on the continent. Africa also plays a crucial role in the global supply chain, and we see JICA’s involvement as the beginning of a strong and trusted relationship built on shared values.”
