Verdant Capital Expands Support for Financial Inclusion with $4.5 Million Boost to LOLC Africa

Verdant Capital has announced a further investment of USD 4.5 million into LOLC Africa Singapore Limited, bringing its total commitment to the company to USD 13.5 million. This latest investment is an extension of an earlier USD 9 million injection made in June 2023, and both rounds of funding have been structured as holding company loans. The capital is directed toward strengthening the operations of LOLC Africa’s lending subsidiaries across several African nations, including Zambia, Rwanda, Egypt, Kenya, Tanzania, Nigeria, Malawi, Zimbabwe, Ghana, and the Democratic Republic of Congo.

LOLC Africa, a subsidiary of the globally renowned microfinance group LOLC Holdings, began its African journey in 2018. Originating from Sri Lanka and founded in 1980, LOLC has steadily emerged as one of the top-performing microfinance institutions globally. Verdant Capital Hybrid Fund stands as the first external investor in LOLC Africa’s operations, reflecting its commitment to catalytic investments that foster meaningful development impact. The fund’s continued support is aimed at expanding LOLC Africa’s footprint in the micro, small, and medium enterprises (MSMEs) lending space, an area that remains underserved but critically important for economic growth and financial inclusion across the continent.

Alongside its financial investment, Verdant Capital is also supporting LOLC Africa through its Technical Assistance Facility (TAF). The facility has already funded Social Ratings and Client Protection Pre-Certifications for subsidiaries in Zambia and Egypt. Additional technical assistance projects are planned, reinforcing a multi-layered approach to responsible and sustainable financial growth. These initiatives are essential in ensuring that the lending practices of LOLC Africa maintain global best practices, especially in terms of customer protection and social impact metrics.

The strategy aligns with Verdant Capital Hybrid Fund’s focus on investing in high-performing institutions within defined themes. In the case of LOLC, the emphasis is on bottom-of-the-pyramid financial services that enhance access to credit and savings products for small business owners and low-income individuals. By extending credit to MSMEs and encouraging deposit mobilization, LOLC Africa is not only contributing to job creation and income generation but is also laying the groundwork for long-term economic empowerment across the regions it serves.

This additional USD 4.5 million will help LOLC Africa deepen its outreach to MSMEs and strengthen the capital foundations of both its existing and prospective subsidiaries. The support will enable the group to continue scaling its proven business model across new and existing markets, contributing to the resilience and sustainability of the African financial ecosystem. The investment is not just a financial transaction but a testament to the shared commitment of both Verdant Capital and LOLC Africa to inclusive growth and responsible development finance.

Moreover, the investment aligns with the Fund’s return expectations, reinforcing its thesis that socially responsible finance can deliver both impact and sustainable returns. As LOLC Africa broadens its operations, this partnership exemplifies the role of targeted, well-structured capital in unlocking the potential of underserved markets in Africa, while simultaneously advancing the global financial inclusion agenda.