Verdant Capital has bolstered its support for LOLC Africa, announcing an additional investment of $4.5 million, bringing the total commitment to $13.5 million.
This follows an earlier $9 million investment in June 2023. Both investments are in the form of holding company loans and will be used to support LOLC Africa’s operations in Zambia, Rwanda, Egypt, Kenya, Tanzania, Nigeria, Malawi, Zimbabwe, Ghana, and the Democratic Republic of Congo.
Founded in Sri Lanka in 1980, LOLC Africa began its operations on the continent in 2018.
The African operations of the company now stand as a key target for investment from Verdant Capital Hybrid Fund, which acts as the first external investor in LOLC Africa.
This partnership underlines Verdant Capital’s catalytic investment approach aimed at promoting financial inclusion across Africa by expanding micro, small, and medium enterprises (MSMEs) access to finance.
In addition to the core funding, the Fund has provided financial backing for LOLC Africa’s Social Ratings and Client Protection Pre-Certifications in Zambia and Egypt, with plans for more initiatives to support the company’s growth.
Recognized globally as one of the top microfinance groups, LOLC focuses on financing businesses and individuals at the “bottom of the pyramid.”
This strategy aims to improve access to financing for MSMEs and promote financial inclusion, especially in underserved markets.
The $13.5 million investment is aimed at expanding and supporting the lending activities of LOLC Africa’s subsidiaries, with a focus on MSMEs, particularly those that will contribute to job creation, income generation, and overall economic growth.
This investment is also expected to boost the capital bases of both existing and potentially new subsidiaries across Africa.
Verdant Capital’s investment continues to drive LOLC’s commitment to sustainable, socially responsible growth and enhancing financial inclusion across the continent.
The Fund’s investment aligns with its target of supporting high-impact initiatives in emerging markets while generating positive returns.
Suits & Advisors (S&A) advised LOLC on this transaction.
