Zain Latif: Nigeria is the Cornerstone of TLG Capital’s 2026 Investment Strategy
TLG Capital Targets $1 Trillion Opportunity in African SME Private Credit
TLG Capital, a leading alternative investment firm, has signaled a major expansion of its activities within the African Small and Medium-sized Enterprise (SME) sector. In a strategic briefing on Thursday, February 19, 2026, the firm’s founder, Zain Latif, described the African SME market as a "trillion-dollar opportunity" that remains largely untapped due to persistent funding gaps in traditional banking sectors.
With over $250 million already deployed across the continent, TLG Capital is positioning itself as a primary provider of flexible private credit a financing tool that is increasingly critical as interest rates in several African markets soar above 30%.
Addressing the "Backbone" of the Economy
SMEs account for over 90% of all businesses and generate approximately 80% of employment across Africa. However, they face a staggering financing deficit. According to Latif, traditional banks often struggle to serve this segment, leaving viable companies to grapple with high capital costs that stifle growth.
"The SME market is the backbone of Africa’s economy," Latif stated. "Our strategy focuses on refinancing expensive debt and providing growth capital to businesses that drive essential economic activity but are underserved by conventional lenders."
TLG Capital’s approach involves providing structured debt solutions with tenors of one to seven years, often in partnership with local banks to help de-risk the lending process.
Nigeria as a Portfolio Cornerstone
During the briefing, Latif identified Nigeria as a central pillar of TLG Capital’s 2026 investment strategy. He cited the country’s deep banking relationships, an increasingly active local capital market, and strong policy momentum supporting industrial innovation as primary drivers for this focus.
Key Nigerian highlights include:
The Nigeria Private Debt Fund: A 10-billion-naira fund the first of its kind fully deployed to essential sectors including agriculture, healthcare, and technology.
Series 2 Launch: Following the 180% oversubscription of its first series, TLG Capital, in partnership with FCMB Asset Management, is preparing to launch a second series to meet rising investor demand for private credit.
Manufacturing Push: A strategic partnership with the UK-funded Manufacturing Africa programme is targeting over $1.2 billion in foreign direct investment into the sector by late 2026.
The Role of the Africa Growth Impact Fund II (AGIF II)
Central to TLG’s 2026 roadmap is the Africa Growth Impact Fund II (AGIF II). This $200 million fund is anchored by a $20 million commitment from the International Finance Corporation (IFC) and supported by European development finance institutions including Swedfund and Norfund.
The fund specifically targets "stressed but sustainable" SMEs, offering a lifeline to businesses navigating macroeconomic shocks, currency volatility, and high inflation. By combining capital with "advisory horsepower" from partners like McKinsey and BDO, TLG aims to ensure that portfolio companies can scale operations and preserve critical jobs.
As global investors re-evaluate frontier market risks, TLG Capital’s aggressive move into the African SME space underscores a growing confidence in the continent's private sector resilience. For Nigeria, the influx of private credit offers a vital alternative to expensive commercial bank loans, providing manufacturers and tech firms with the patient capital required to drive industrialization. As Latif noted, the goal is to prove that "strong development outcomes and strong financial returns can go hand in hand."
