The International Finance Corporation (IFC) is moving to solidify a major investment in Aruwa Capital Fund II (ACF II), a $50 million private equity fund managed by the Lagos-based, women-led firm Aruwa Capital Management. The project, currently awaiting formal board approval scheduled for March 11, 2026, represents a significant push to support the “missing middle”—SMEs that are too large for seed funding but too small for traditional private equity.
Led by founder Adesuwa Okunbo Rhodes, Aruwa Capital is one of the few female-founded and led growth equity funds in Africa, specializing in Gender-Lens Investing (GLI).
1. Investment Structure and “Blended Finance”
The IFC’s involvement uses a “Blended Finance” model designed to de-risk investments in underserved West African markets.
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IFC Equity: A proposed investment of up to $8 million, capped at 20% of total commitments.
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IDA21 Concessional Window: An additional $3 million subordinated co-investment from the International Development Association (IDA). This “patient capital” layer absorbs higher risk, encouraging other institutional investors to join.
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Concessional Level: The subsidy component is estimated at 0.9% of the total project cost, a strategic lever to mobilize private capital into “risky” segments.
2. Strategic Focus: The Gender Lens
ACF II targets initial investments of $1 million to $3 million in growth-stage SMEs in Nigeria (primary focus) and Ghana (up to 20%). The fund specifically selects companies that meet the 2X Challenge criteria:
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Female-Led/Owned: Supporting businesses founded or managed by women.
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Female-Focused Products: Investing in companies providing essential goods/services to the female economy.
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Target Sectors: Consumer Goods, Clean Energy (Cleantech), Financial Services, and Healthcare.
3. The “Missing Middle” Opportunity
In West Africa, early-stage SMEs often face a “credit crunch.” Aruwa Capital fills this void by acting as the first institutional investor for high-potential companies.
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Track Record: Aruwa’s first fund backed successful startups like FairMoney (Fintech) and Wemy Industries (Hygiene/Consumer Goods).
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Current Deployment: Fund II has already begun deploying capital into the consumer sector, including ventures like Yikodeen and Toasties.
Fund Profile: Aruwa Capital Fund II (2026)
“Aruwa Capital is doubling down on its commitment to impact-driven investing… we are proud to be leading the charge in redefining the private equity industry in Africa.” — Adesuwa Okunbo Rhodes, Founder, Aruwa Capital.
