Sri Lanka’s LOLC makes three parallel foreign acquisitions Tajikistan, Malawi and Tanzania
Sri Lanka’s LOLC Holdings has reportedly expanded its global footprint with three parallel investments being made in Tajikistan, Malawi and Tanzania.
LOLC has entered Central Asia with its maiden investment in the region through the acquisition of a 75% stake in a company known as Karat, (LLC LTMKh and LLCTMKhL) with a license authorising them to conduct micro-lending and gold loan business in Tajikistan.
Meanwhile, the LOLC Group’s microfinance operations in Nigeria and Zambia have provided the impetus for the group to further deepen its presence in the African continent through the strategic acquisition of two microfinance companies in Malawi and Tanzania, the Daily FT has reported.
After creating a microfinance and SME model in Sri Lanka, LOLC entered into the global MSME arena in 2007 with a maiden investment of just $ 0.5 million to acquire an 18% stake in PRASAC Microfinance Institution Ltd. in Cambodia.
The group had afterwards acquired a 70% controlling interest of PRASAC over the next nine-year period. LOLC has also achieved further success in Cambodia by replicating its MSME business model through LOLC Cambodia, the group’s second investment in the country.
Further, LOLC’s greenfield operation in Myanmar, LOLC Myanmar Microfinance Company Ltd. too remains one of the leading microfinance operations in that country.
Meanwhile, the LOLC Group’s more recent microfinance investments in Indonesia, the Philippines, and Pakistan too are now recording turnaround results, supported by a steady build-up of MSME portfolios and assets.
The overseas expansion of Sri Lanka’s LOLC is indicative of the strength and growth of the country’s private sector. Sri Lanka’s strong trade ties, the business conducive environment as well as the continuously improving ease of doing business environment have helped the country’s private sector record impressive growth rates. In fact, many Sri Lankan private sector companies had shown a growth momentum despite challenges posed by the global Covid 19 pandemic. Foreign businesses/investors could therefore look at forming partnerships and joint ventures with local businesses to engage with other countries in the region. Foreign businesses could also look at setting up base in Sri Lanka to engage with other countries using the preferential trade facilities enjoyed by the country.
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