Swedfund invests Sh1.3 billion million to support MSME lending in East and Southern Africa
The loan is supported up to 50 per cent through a guarantee by the European Union under EFSD+ as a contribution to the Global Gateway investment priority of Financial Inclusion
Swedfund has signed a Sh1.3 billion (US$ 10 million) loan to Platcorp Holdings Limited to support lending to micro, small, and medium-sized enterprises (MSMEs) in Kenya, Uganda, Tanzania, and Zambia.
The investment aims to address persistent barriers to finance in these countries, where small businesses often lack access to formal credit. The loan is expected to help businesses grow and create decent jobs, with a particular focus on women-owned enterprises and climate-resilient agriculture.
“Limited access to finance is a key constraint for small businesses in many developing countries,” says 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, Sweden’s development finance institution, has previously provided loans to Platcorp, the holding company of Platinum Credit, in 2018, 2020, and 2022. In connection with its investments, Swedfund has seen improvements in the company’s environmental and social risk management, including measures related to customer protection and gender equality.
“This renewed partnership with Swedfund marks a significant step forward in our journey toward financial inclusion and sustainable impact,” says 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 environmental and social practices. Swedfund’s commitment reinforces our shared values of gender empowerment, responsible finance, and job creation across underserved communities.”
Swedfund’s loan is supported up to 50 per cent through a guarantee by the European Union under EFSD+ as a contribution to the Global Gateway investment priority of Financial Inclusion.
