Verdant Capital expands investment in LOLC Africa
The Morning: Verdant Capital has made an investment of $ 4.5 million into LOLC Africa Singapore Limited, bringing its total investment in the pan-African microfinance operator to $ 13.5 million.
This transaction was made through its Verdant Capital Hybrid Fund, follow-on investment that builds upon an initial $ 9 million commitment made in June 2023.
Both funding tranches, structured as holding company loans, are designated to support and expand the lending activities of LOLC Africa’s subsidiaries across ten African nations: Zambia, Rwanda, Egypt, Kenya, Tanzania, Nigeria, Malawi, Zimbabwe, Ghana, and the Democratic Republic of Congo.
LOLC, a Sri Lankan group established in 1980, entered the African market in 2018 and subsequently secured its first external investment from the Verdant Capital Hybrid Fund.
OSL take:
The overseas expansion of Sri Lanka’s LOLC and the confidence shown by foreign businesses in local businesses indicate the strength and growth being recorded by businesses in Sri Lanka. It further indicates the resilience and growth of the country’s overall economy. After facing an unprecedented economic crisis, Sri Lanka is back on the growth path with all key economic sectors showing expansion presenting many business/investment opportunities. The country is targeting on becoming a hub in the South Asian region supported by the country’s geographical positioning in the Indian Ocean and the strong trade ties enjoyed with many foreign countries. With all these positive momentum, Sri Lanka is showing great growth and business potential. Foreign businesses/investors could therefore confidently explore the expanding business/investment opportunities in Sri Lanka while also exploring the possibilities of expanding operations locally and internationally by forming joint ventures or partnerships with local businesses.
| Article Code : | VBS/AT/20250418/Z_5 |