Swedfund, Sweden’s development finance institution, has signed a $10 million loan agreement with Platcorp Holdings Limited to support MSME lending in Kenya, Uganda, Tanzania, and Zambia.
The new investment will focus on enhancing access to finance for micro, small, and medium-sized enterprises, particularly women-owned businesses and climate-resilient agriculture ventures. These sectors remain largely excluded from traditional credit systems, hindering growth and job creation across the region.
“Limited access to finance is a key constraint for small businesses in many developing countries,” said Jakob Larsson, Senior Investment Manager at Swedfund. “This investment supports the expansion of financial services in underserved communities and contributes to Swedfund’s broader objectives of inclusive and sustainable economic development in low-income countries.”
Swedfund’s relationship with Platcorp is longstanding, with previous funding rounds in 2018, 2020, and 2022. Over the years, Swedfund has noted significant improvements in Platcorp’s environmental and social governance, including enhancements in customer protection and gender equality frameworks.
“This renewed partnership marks a significant step forward in our journey toward financial inclusion and sustainable impact,” said Ignatius Obara, Executive Director of Corporate Affairs, Platcorp Group. “With this support, we will be able to channel more capital to women entrepreneurs, expand access to climate-smart agricultural finance, and continue strengthening our ESG practices.”
Swedfund’s latest loan is 50% guaranteed by the European Union under EFSD+, aligning with the Global Gateway initiative which prioritizes financial inclusion as a key driver of sustainable development.
By empowering MSMEs across four countries and addressing systemic financing gaps, the collaboration between Swedfund and Platcorp is expected to catalyze economic resilience, job creation, and inclusive growth across Africa’s emerging markets.
