Convergence and Global Affairs Canada anchor US$1bn blended finance cohort for African and emerging markets

Convergence Blended Finance, in partnership with Global Affairs Canada (GAC), has announced the inaugural cohort for its Blended Finance Accelerator for Fund Managers (A4FM), a multi-year initiative designed to mobilize institutional capital into undercapitalized markets. Of the six fund managers selected, four are explicitly targeting the African continent: Argentil Capital Management, Double Feather Partners, EG Capital, and Oryx Impact. With a combined potential to mobilize approximately US$1 billion in total commitments, these vehicles are engineered to address chronic undercapitalization in SME growth, mobility, and regional trade. Convergence is a global network dedicated to blended finance.

The selected African managers will receive catalytic grant funding and tailored acceleration support to move their vehicles from concept to closing. Argentil Capital will use Proof-of-Concept support to refine the FX framework for its US$75 million growth fund targeting Nigerian and Ghanaian SMEs. Double Feather Partners is utilizing its award to strengthen the structure and team capacity of its US$50 million Africa Mobility Innovation Fund. Meanwhile, EG Capital will apply Expansion Stage support to launch its US$100 million debt fund for supply chain resilience, and Oryx Impact is developing a US$250 million fund-of-funds structure designed to crowd in local institutional investors.

The cohort reflects an increasing use of blended finance structuring to address key barriers such as currency risk, early-stage market gaps, and macro-economic instability. These structures mitigate the macro-economic instability limiting private participation through the deployment of catalytic capital from GAC to absorb first-loss positions or manage currency volatility. Institutional commitments to blended finance have surged from US$2 million in 2022 to US$1.6 billion in 2024, signaling a growing appetite for de-risked exposure to developing markets.

This approach targets the long-standing imbalance where high-growth opportunities in emerging markets are sidelined by prohibitive risk perceptions. Despite the demonstrable viability of projects across the continent, institutional capital has remained largely immobile due to a lack of investment vehicles that meet strict fiduciary requirements. By providing the technical and financial scaffolding necessary to professionalize these opportunities, the program bridges the divide between dormant capital and the high-impact sectors that drive economic progress. Convergence data indicates that while asset managers have led 21% of blended transactions over the past decade, a lack of sophisticated structuring has historically hampered scale. The A4FM program corrects this by equipping managers with the FX risk management tools and credit rating processes required to meet institutional fiduciary standards.

The strategic significance of this cohort lies in its commitment to domestic resource mobilization. Vehicles such as Argentil’s ASIF and the Oryx Impact Fund-of-Funds are designed to reduce dependence on foreign-denominated debt by creating local currency “sleeves”. This allows African institutional investors to deploy capital into high-impact sectors like SME resilience and climate adaptation without the friction of exchange rate volatility, aligning long-term domestic savings with the continent’s industrial progress.

The investment pipeline is focused on scalable, integrated ventures across critical sectors:

• SME & Supply Chain Security: EG Capital’s US$100 million fund and Argentil’s US$75 million vehicle target job creation and resilience in underserved West and East African markets.
• Mobility & Logistics: The DFP Africa Mobility Innovation Fund (US$50 million) focuses on supply chain transformation and emissions reduction.
• Institutional Impact Allocation: The Oryx Impact US$250 million fund-of-funds and Ashmore Group’s US$500 million private debt strategy aim to mainstream impact-oriented credit for sovereign and institutional investors.

The next call for proposals is currently accepting applications until 25th May 2026.