Verdant Capital has announced a fresh injection of $4.5 million into LOLC Africa Singapore Limited through its Verdant Capital Hybrid Fund, raising the Fund’s total investment in the company to $13.5 million. This follows an earlier $9 million investment in June 2023, with both tranches structured as holding company loans. The capital is being channelled into LOLC Africa’s lending subsidiaries across ten African countries, including Zambia, Rwanda, Egypt, Kenya, Tanzania, Nigeria, Malawi, Zimbabwe, Ghana, and the Democratic Republic of Congo.
LOLC, originally founded in Sri Lanka in 1980, began its African operations in 2018. Verdant Capital Hybrid Fund is the first external investor to back LOLC Africa, reflecting its strategy of making catalytic investments in top-performing companies with strong impact potential. This funding supports the expansion of LOLC’s micro, small, and medium enterprise (MSME) financing footprint, promoting financial inclusion in diverse African markets.
In addition to financial investment, the Fund’s Technical Assistance Facility has provided support for social ratings and client protection pre-certifications for LOLC subsidiaries in Zambia and Egypt, with more technical support planned for other countries. These initiatives reinforce LOLC Africa’s focus on sustainable and responsible finance.
Recognised as one of the world’s leading microfinance groups, LOLC targets customers at the “bottom of the pyramid” by improving access to financial services and increasing customer deposits across underserved communities. The latest funding will help scale the group’s lending activities while strengthening the capital base of both existing and prospective subsidiaries.
This investment aligns with the Fund’s strategy of supporting high-impact financial inclusion efforts while maintaining target-level returns. It also provides investors with diversified exposure across multiple African markets, reflecting confidence in LOLC’s capacity to deliver both commercial success and meaningful socio-economic impact.
The transaction was advised by Suits & Advisors (S&A), who acted as LOLC’s financial advisor.
