Verdant Capital Hybrid Fund has invested an additional USD 4.5 million in LOLC Africa, raising the total investment to USD 13.5 million to support microfinance initiatives across several African nations.

Target Information

LOLC Africa Singapore Limited has recently received an additional investment of USD 4.5 million from the Verdant Capital Hybrid Fund, which increases the total funding to USD 13.5 million. The additional funds follow a prior investment of USD 9 million made in June 2023. Both investments are structured as holding company loans aimed at enhancing the financial operations of LOLC Africa’s subsidiaries across various African nations, including Zambia, Rwanda, Egypt, Kenya, Tanzania, Nigeria, Malawi, Zimbabwe, Ghana, and the Democratic Republic of Congo.

As the initial external investor for LOLC Africa, the Fund plays a vital role in broadening LOLC's financing capabilities for micro, small, and medium enterprises (MSMEs) throughout the continent. Furthermore, the Fund's Technical Assistance Facility has actively assisted with Social Ratings and Client Protection Pre-Certifications for the subsidiaries in Zambia and Egypt, with additional support programs in development.

Industry Overview

LOLC, established in Sri Lanka in 1980, penetrated the African market in 2018 and has since gained recognition as a leading microfinance entity. The organization's business model emphasizes