Reinforces continuous financial support for African microfinance expert through successive loan provision by Swedfund.
Platcorp Boosts Financial Inclusion in East and Southern Africa
Platcorp Holdings Limited, a financial services company specialising in microfinance, is making a significant impact on financial inclusion in East and Southern Africa. The company, operating in Kenya, Uganda, Tanzania, South Africa, Lesotho, and Zambia, provides targeted loans to micro, small, and medium-sized enterprises (MSMEs), with a particular emphasis on micro enterprises and women-owned businesses.
In 2024, Platcorp disbursed $347 million in loans, with $306 million going to MSMEs and $20.2 million specifically for agriculture. The company has financed over 88,586 MSME customers and 37,453 farmers, many of whom are smallholder farmers linked to agricultural value chains.
One of the key aspects of Platcorp's strategy is its focus on micro enterprises. With an average loan size of around $320, the company targets very small businesses such as roadside vegetable vendors, individual traders, and agricultural input sellers in rural areas. This micro-level financing helps address the large financing gap for African SMEs, estimated at $330 billion by the African Development Bank.
Platcorp also places a strategic emphasis on empowering women entrepreneurs. A remarkable 62% of Platcorp's beneficiaries are women, reflecting the company's commitment to fostering inclusive economic growth.
The company's approach to climate resilience is evident in its loan portfolio, with around 10% targeting agriculture despite the sector's riskiness. This focus includes financing smallholder farmers and businesses connected to their value chains, promoting climate-smart and resilient agricultural practices that support rural livelihoods and sustainability.
Platcorp's impact is further amplified through strategic partnerships. Swedfund, a Swedish development finance institution, has signed a $10 million debt deal with Platcorp. The loan, supported up to 50% through an EU guarantee from the European Fund for Sustainable Development Plus (EFSD+), aims to contribute to closing the financing gap in East and Southern African countries where small businesses often lack access to formal credit.
Swedfund's investment in Platcorp is not new, as the institution has previously provided loans in 2018, 2020, and 2022. Platcorp's approach, which effectively identifies and supports small businesses, has earned the confidence of Swedfund and the EU.
Beyond micro and agricultural loans, Platcorp also provides credit to individuals and businesses in trade, retail, affordable housing development, and education sectors, thus supporting diverse socio-economic needs.
Platcorp's loans are not just about providing credit; they are about helping businesses grow, creating decent jobs, and supporting women-owned enterprises and climate-resilient agriculture. The company offers technical assistance to its borrowers, including employing agronomists for on-the-ground advice and developing training programs in financial literacy, sustainable agricultural practices, and silage management. The training for farming loans is mandatory for Platcorp's borrowers.
In Kenya, the majority of dairy production is done by individual farmers with five cows or less, and it is aggregated through cooperative systems. Platcorp's product allows farmers to use their cattle as collateral to upscale their businesses and expand into seasonal crops.
In conclusion, Platcorp Holdings Limited is driving financial inclusion by offering small-sized loans to typically underserved micro enterprises and prioritising women-owned businesses in East and Southern Africa. Their approach addresses major structural financing gaps in rural and urban informal sectors, fosters climate resilience in agriculture, and leverages international development finance partnerships to scale impact.
- Platcorp Holdings Limited, a financial services company, is investing in biodiversity by financing smallholder farmers and businesses connected to their value chains, promoting climate-smart and resilient agricultural practices.
- The company's focus on micro enterprises, including roadside vegetable vendors, individual traders, and agricultural input sellers in rural areas, is helping to close the financing gap for African SMEs, estimated at $330 billion by the African Development Bank.
- Swedfund, a Swedish development finance institution, is investing in private equity by signing a $10 million debt deal with Platcorp, aiming to contribute to closing the financing gap in East and Southern African countries where small businesses often lack access to formal credit.
- Beyond micro and agricultural loans, Platcorp is investing in the development finance of various sectors, such as affordable housing development, trade, retail, and education, thus supporting diverse socio-economic needs.
