Source: Entrackr
August 22, 2025 – The Japan International Cooperation Agency (JICA) has officially announced their investment of $40 million in the Global Supply Chain Support Fund with Aavishkaar Capital as the fund manager. It will support small and medium-sized enterprises in Asia and Africa involved in global supply chains and return reliable financial returns while promoting sustainable and inclusive growth.
Investment Announcement
The announcement was made by Japanese Prime Minister Shigeru Ishiba at the Economic Partnership in the Indian Ocean – Africa Forum, taking place during the Yokohama-hosted Tokyo International Conference on African Development (TICAD 9). The announcement is a commitment on Japan’s behalf to develop its economic partnerships in the Indian Ocean region and a clear commitment to know how to support impact investment across emerging markets.
Intent of the Fund
The Global Supply Chain Support Fund lends credit to small and medium-sized enterprises (SMEs) that are engaged in global supply chains. The companies included in this fund are SMEs that operate in the various sectors of agriculture, food processing, and manufacturing, and many of them are working on solutions that create social and environmental value.
Unlike traditional venture debt or equity funding, by providing structured credit, the fund provides access to crucial credit to businesses without equity dilution. With the latest investment from JICA, Aavishkaar Capital will now be able to facilitate extended capital solutions and investments beyond India, into Africa and other Asian markets.
About Aavishkaar Capital
Aavishkaar Capital is a leading impact investment firm in the Global South that invests in companies in sustainable agriculture, financial inclusion, and essential services. The firm has raised eight funds to date and currently has approximately $550 million of assets under management.
The Global Supply Chain Support Fund is the firm’s eighth fund and has also received support from other global partners, including the German development bank, KfW, which participated as an anchor investor with a €50 million commitment.
Why This Is Important
JICA’s investment is anticipated to bolster global supply chains and provide opportunities for SMEs that do not normally have access to low-cost financing. It will also aid in the promotion of climate-friendly, socially responsible growth in developing markets.
This partnership is an additional effort in strengthening trade and development relationships from Japan to India, to Africa, and beyond to other Asian countries. It showcases how international collaboration can enhance not only economic growth, but also in the sustainability development goals.
