JICA invests $40 Mn in Aavishkaar Capital fund to boost SMEs in Asia, Africa

Japan’s JICA has invested $40 million in Aavishkaar Capital’s ‘Global Supply Chain Support Fund’ to help businesses in Asia and Africa grow sustainably and inclusively.

Japanese Prime Minister Shigeru Ishiba announced the investment at the “Economic Partnership in Indian Ocean – Africa Forum.” The fund will be managed by Aavishkaar Capital, a leading impact investment firm.

With JICA’s contribution, Aavishkaar Capital will provide loans to private companies in Africa, India, and other emerging Asian markets. These companies work in supply chains like agriculture, food processing, and manufacturing. The goal is to support SMEs that create strong social and environmental impact.

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JICA’s investment in the Global Supply Chain Support Fund will help Aavishkaar Capital expand beyond India into emerging markets in Africa and Asia, supporting the development of the Indian Ocean region and global supply chains.

The fund invests in businesses across global supply chains that have strong social and climate impact and has already made 8 investments in Asia and Africa.

"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," said Mikio Hataeda, Senior Vice President, JICA.

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"We 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…," said Vineet Rai, Founder, Aavishkaar Group and Managing Partner, Aavishkaar Capital.

"With JICA's catalytic support, we aim to scale the Global Supply Chain Support Fund's reach across Asia and Africa, empowering SMEs with growth capital to build resilient-, climate & social Impact aligned - supply chains that can thrive in global markets," said Monu Jain, Partner, Aavishkaar Capital.

Aavishkaar Capital is an impact fund manager focused on the Global South. It invests in sustainable agriculture, financial inclusion, and essential services across India, Emerging Asia, and Sub-Saharan Africa. The firm has raised eight funds and manages about $550 million in assets while delivering returns.