NAIROBI, Kenya– Aavishkaar Capital has secured a $40 million (Sh5.3 billion) investment from the Japan International Cooperation Agency (JICA), in a deal expected to ease financing constraints for small and medium-sized enterprises (SMEs) across Africa and Asia.
The funding will be channeled into Aavishkaar’s Global Supply Chain Support Fund (GSCSF), which targets businesses in agriculture, food processing, and manufacturing—sectors considered critical to Kenya’s export competitiveness.
The announcement was made during the “Economic Partnership in Indian Ocean – Africa Forum,” held on the sidelines of the Tokyo International Conference on African Development (TICAD 9) in Yokohama, Japan.
Kenya’s SME sector contributes more than 40 percent of GDP and employs over 80 percent of the workforce, yet faces an annual financing gap estimated at Sh1.3 trillion.
Access to flexible and affordable credit remains the biggest barrier to growth, leaving many export-oriented enterprises unable to scale to meet global demand.
By injecting fresh capital into Aavishkaar’s fund, JICA seeks to bridge part of this gap while backing businesses with measurable social and environmental impact.
“Africa plays a crucial role in global supply chains, but SMEs often lack the financing needed to fully participate,” said Mikio Hataeda, JICA’s Senior Vice President.
The GSCSF, established in partnership with Germany’s KfW development bank, is Aavishkaar Capital’s eighth fund and has already invested in eight enterprises across Asia and Africa.
It offers non-dilutive financing to mid-sized companies embedded in global supply chains, with a strong focus on climate impact and job creation.
Kenya’s agriculture and food processing industries are expected to benefit significantly, especially as exporters face rising demands on traceability, carbon emissions, and resilience.
Analysts say flexible debt financing could enable local firms to modernize production and access premium markets.
For Japan, the investment underscores a deeper pivot toward Africa within its economic diplomacy.
TICAD, first launched in 1993, has increasingly emphasized private-sector partnerships to drive sustainable growth.
Vineet Rai, Founder of Aavishkaar Group, said the partnership highlights the role of emerging economies in shaping development.
“Together, we are committed to advancing sustainable growth and unlocking transformative opportunities for SMEs across Africa and Asia,” he said.
