Small and medium-sized enterprises (SMEs) in Asia and Africa are set to get more financing after the Japan International Cooperation Agency (JICA) announced a $40 million (Sh5.2 billion) investment in Aavishkaar Capital’s Global Supply Chain Support Fund.
The initiative—launched at the Economic Partnership in Indian Ocean - Africa Forum on the sidelines of TICAD 9 in Yokohama—will expand support for businesses that create jobs, strengthen supply chains, and drive positive social and environmental change, particularly in agriculture, food, and manufacturing.
The fund, Aavishkaar Capital’s eighth, provides debt financing to private companies in emerging markets. JICA’s participation is expected to help bridge the credit gap facing SMEs, which remain critical drivers of economic growth but often struggle to access affordable funding.
The capital will target businesses with measurable social and environmental impact, such as those tackling climate issues, advancing food security, and empowering rural communities.
JICA Senior Vice President Mikio Hataeda said the investment marks a “new chapter of collaboration” between the agency and Aavishkaar. “This commitment reflects JICA’s growing role in impact investment and underscores our focus on strengthening resilient supply chains across Asia and Africa,” he said.
Vineet Rai, founder of the Aavishkaar Group, described the partnership as an extension of “the long-standing tradition of Indo-Japan economic cooperation,” noting that the collaboration with JICA would accelerate Aavishkaar’s mission of backing businesses that not only generate financial returns but also deliver meaningful social outcomes.
The Global Supply Chain Support Fund was established in partnership with German development bank KfW. It has deployed capital into eight companies across Asia and Africa.
Managing Partner at Aavishkaar Capital, Ashish Patel, noted that JICA’s involvement will be impactful in Africa, where SMEs in agriculture and essential services face acute financing shortages.
“This investment will enable us to expand lending to overlooked sectors and support enterprises that are vital to community resilience and job creation,” he said.
The announcement by Prime Minister Shigeru Ishiba highlights Japan’s commitment to fostering inclusive growth in emerging markets through partnerships that blend economic and developmental objectives.
With JICA’s capital injection, the fund is expected to accelerate its role in building sustainable businesses at the heart of Asia and Africa’s supply chains.
