NAIROBI, Kenya, Aug 27 – Aavishkaar Capital, an impact investment fund manager, has secured $40 million from the Japan International Cooperation Agency (JICA) for its Global Supply Chain Support Fund (GSCSF).
The financing will expand access to credit for small and medium-sized enterprises (SMEs) in Africa and Asia.
The investment was announced by Japanese Prime Minister Shigeru Ishiba during the Economic Partnership in Indian Ocean–Africa Forum, which was held alongside the Tokyo International Conference on African Development (TICAD9) in Yokohama, Japan.
SMEs in Kenya contribute more than 40 percent of GDP and employ over 80 percent of the workforce. Despite this, they face a financing gap estimated at Sh1.3 trillion annually. The partnership with JICA is expected to ease this shortfall by providing debt funding to export-oriented firms and other enterprises in emerging markets.
The GSCSF focuses on private companies in agriculture, food processing, and manufacturing supply chains. These sectors are regarded as central to the competitiveness of exporters in Kenya and other emerging economies. The fund provides non-dilutive credit to help businesses scale production and meet international demand.
The initiative is managed by Aavishkaar Capital, which is headquartered in Mumbai, India. It is the firm’s eighth fund and was set up in partnership with KfW, Germany’s state-owned development bank. Since its inception, the GSCSF has made eight investments across Asia and Africa.
Kenya is expected to be one of the main beneficiaries, given its role in regional trade and its large base of small enterprises. Analysts say the deal reflects the growing importance of Africa in global supply chains, especially in agriculture and essential goods.
JICA has previously collaborated with Aavishkaar in India. The latest investment is part of Japan’s wider effort to strengthen economic links with Africa and promote private sector-led development across the Global South.
According to Aavishkaar Capital, the financing will also target companies with measurable social and environmental impact, aligning with global priorities on sustainable growth and climate resilience.
The Global Supply Chain Support Fund will expand operations in Africa and Asia with the aim of providing credit in sectors often overlooked by traditional lenders. The fund’s managers say this will support employment, boost exports, and create greater resilience in local economies.
