Reaffirming its ongoing support, Swedfund continues to provide loans to the African microfinance specialist on a successive basis.
Platcorp's Microfinance Services Expand Financial Inclusion in East and Southern Africa
Platcorp Holdings Limited, a financial services company focused on microfinance, is making a significant impact in East and Southern Africa by providing loans to micro, small, and medium-sized enterprises (MSMEs) that are typically underbanked or underserved. The company, which operates in Kenya, Uganda, Tanzania, and Zambia, offers an average loan size of $320, supporting businesses such as roadside vegetable sellers, small traders, women-owned enterprises, and those involved in climate-resilient agriculture.
Swedfund, Sweden's development finance institution, has recognised the value of Platcorp's work and has invested $10m in Platcorp Holdings Limited. This investment aims to help close the financing gap for small businesses in the region, particularly in East and Southern African countries.
Platcorp's philosophy is to only lend to people who will be better off after the loan, avoiding over-indebtment and high risks. The company employs agronomists to provide advice to farmers, aiming to improve their farming practices. This approach has led to the significant growth of Platcorp's agriculture portfolio, with over 37,000 agricultural clients financed in 2024 alone.
In addition to agriculture, Platcorp works in the trade and retail sectors, affordable housing development, and education, extending credit to both schools and individuals who want to attend school. The company also provides technical assistance to its borrowers, including on-the-ground advice from agronomists and mandatory training for farming loans.
Platcorp's product allows farmers to use their cattle as collateral to upscale their business and expand into seasonal crops. This loan is supported up to 50% through an EU guarantee from the European Fund for Sustainable Development Plus (EFSD+). The majority of dairy production in Kenya comes from individual farmers with five cows or less and is aggregated through cooperative systems.
In collaboration with Swedfund, Platcorp has designed innovative products, including a loan aimed specifically at smallholder farmers in the potato and dairy value chains in Kenya. This loan is expected to help businesses grow, create jobs, and focus on women-owned enterprises and climate-resilient agriculture.
Platcorp's impact extends beyond financial inclusion. By increasing formal credit access, the company contributes to sustainable and inclusive economic development in the region. The company's work expands financial inclusion by bridging a significant credit gap—estimated at $330 billion for African SMEs—helping these small businesses grow and create decent jobs.
This investment from Swedfund marks the fourth investment in Platcorp, following earlier loans in 2018, 2020, and 2022. The investment underscores the importance of Platcorp's work in expanding financial inclusion and promoting sustainable economic development in East and Southern Africa.
- Platcorp's Microfinance Services not only expand financial inclusion in East and Southern Africa, but they also target the development of affordable housing, education, trade, and retail sectors.
- The company's philosophy prioritizes social impact, ensuring that only those who will benefit financially from their loans are provided services, avoiding over-indebtment and high risks.
- Platcorp's unique approach to lending has led to the growth of their agriculture portfolio, with over 37,000 agricultural clients financed in 2024 alone.
- To further support farmers, Platcorp's product allows them to use their cattle as collateral for loans, enabling them to upscale their business and diversify into seasonal crops.
- The partnership between Platcorp and Swedfund has resulted in the creation of innovative products, such as a loan specifically for smallholder farmers in the potato and dairy value chains in Kenya.
- By increasing formal credit access, Platcorp contributes to sustainable and inclusive economic development, bridging a significant credit gap of $330 billion for African SMEs, helping these businesses grow and create decent jobs, thereby impacting general-news and the lifestyle of individuals in the region.
