Nairobi, 30 June 2026 — FSD Africa Investments (FSDAi) today announced a US$1.25 million commitment in iungo Capital, a lender that provides growth financing to small businesses across East Africa. The investment will strengthen iungo’s capital base, enabling them to borrow more and accelerate lending to businesses that struggle to access finance.
Small and growing businesses (SGBs) are the engines of East Africa’s economies. They drive employment, anchor local value chains in food, manufacturing and trade, and form the backbone of communities across Uganda, Kenya, Rwanda and Tanzania. Despite their outsized economic role, these businesses are systematically shut out of affordable finance: they are too large for microfinance yet still perceived to be too early and risky for traditional banks.
iungo capital was built specifically to fill this gap. Operating across Uganda, Kenya, Rwanda, and Tanzania, iungo provides USD-denominated loans of USD 250,000 on average in a first round, pairing capital with targeted technical assistance to strengthen business performance and support long-term growth. Since its inception, iungo has deployed over US$25 million across +60 businesses, building a resilient and diversified portfolio with strong credit performance while supporting job creation and inclusive economic growth across the region.
FSDAi’s investment is made through its Nyala Facility, which provides flexible capital to support innovative financing models and Alternative Local Capital Providers (ALCPs), using its catalytic position to crowd in follow-on investment from institutional investors. This catalytic approach, combining patient, long-term capital with active partnership and enhanced governance support, reflects FSDAi’s broader commitment to building stronger, more inclusive financial markets across Africa.
The investment is expected to support the creation or preservation of 800 jobs across East Africa, finance at least 30 businesses over the investment period, many which are founded, owned, or led by women.
Announcing the investment, FSDAi’s Chief Investment Officer, Anne-Marie Chidzero, said:
“iungo is an important emerging capital allocator, demonstrating how locally rooted fund managers can address the persistent financing gap faced by small and growing businesses across East Africa. By combining deep market knowledge with flexible financing, iungo is building a credible and scalable form of finance for SGBs. FSDAi’s catalytic investment will help de-risk the opportunity, crowd in institutional capital and enable iungo to scale its proven model across the region.”
Roeland Donckers, iungo Capital’s Managing Partner, underscored the significance of the investment, stating:
“Over the past 10 years, iungo capital has consistently targeted the biggest segment of SMEs with unmet finance needs, a traditional segment where local banks and many impact investment funds have gradually moved away from. FSDAi’s investment will help us catalyse the growth of a proven model, not just by its capital and the structure of the same, but also by providing technical assistance and indicating investor confidence to the wider market.”
For more information/queries on FSD Africa Investments and iungo Capital, please contact:
FSD Africa Investments
Joyce Waihiga, Manager, Communications, FSDAi
joyce@fsdafrica.org
iungo Capital
Roeland Donckers, Managing Partner
roeland@iungocapital.com
About FSD Africa Investments (FSDAi)
FSD Africa Investments (FSDAi) is a specialist financial sector investor established by FSD Africa and the UK’s FCDO to strengthen and deepen Africa’s financial markets. We bridge critical funding gaps by investing patient, risk-bearing capital in novel financial instruments, facilities, and intermediaries. Our strategic investments take on early risk, test new models and catalyse capital from others to gradually transition the financial sector to finance Africa’s economic resilience and growth. To date, FSDAi has committed £127 million from its £309m capital commitment to 21 investments, and has successfully exited three investments, one at 2x money. For more information, visit: www.fsdafrica.org/fsdai
About iungo Capital
iungo Capital B.V. is a Netherlands registered investment holding company that provides mezzanine debt financing to traditional SMEs across East Africa. In Uganda, Kenya, Rwanda, and Tanzania, iungo offers USD-denominated loans of up to US$500,000 in a first round, to businesses in labour-intensive sectors, including agri-processing and light manufacturing. Since inception, iungo has deployed over US$25 million across +60 businesses, pairing capital with targeted technical assistance to build resilient, high-impact portfolios that drive job creation and inclusive economic growth. Over 80% of iungo’s portfolio has been consistently 2X aligned. For more information, visit: www.iungocapital.com
