Verdant Capital Hybrid Fund has completed a USD 9 million investment in LOLC Africa to expand MSME financing across several African countries, promoting financial inclusion and economic growth.

Target Information

Verdant Capital Hybrid Fund has successfully finalized a USD 9 million investment in LOLC Africa, structured as a loan through the holding company. This capital injection is earmarked for further financing of Micro, Small, and Medium Enterprises (MSMEs) across several African countries, including Zambia, Egypt, Kenya, Tanzania, Nigeria, Malawi, Zimbabwe, Ghana, and the Democratic Republic of Congo. Established in 1980 in Sri Lanka, LOLC made its entrance into Africa in 2018 and has rapidly become one of the top-performing microfinance groups globally. The investment signifies Verdant Capital's commitment as the first external investor in LOLC's African operations, underscoring its mission to catalyze socio-economic progress in the region.

Through this capital infusion, LOLC Africa aims to broaden its outreach and reinforce its financing capabilities for MSMEs, which play a vital role in fostering financial inclusion, creating employment opportunities, generating income, and ultimately promoting broader economic growth. The investment also aligns with LOLC's strategy to scale its operations sustainably while delivering positive social impact to the underserved populations often neglected by traditional financial institutions.

Industry Overview

The microfinance industry in Africa has witnessed significant growth in recent years, driven by the urgent need for financial services among low-income populations. The sector has emerged as a pivotal engine for economic development, particularly as it caters to the financing nee