Swedfund renews financial support to African microfinance expert through another loan.
Platcorp Holdings Limited, a financial services company based in East and Southern Africa, is making a significant impact by providing microfinance services to underserved businesses and individuals. With a focus on micro, small, and medium-sized enterprises (MSMEs), Platcorp is bridging the financing gap that excludes 80% of African SMEs from formal credit access [1].
The company's core clientele are typically rural and very small-scale businesses, such as roadside vegetable sellers, agricultural input vendors, and small traders needing working capital. Platcorp's loan sizes average around $320, catering to the needs of micro enterprises that traditional banks often overlook [2].
One of Platcorp's unique offerings is the ability for farmers to use their cattle as collateral to upscale their businesses and expand into seasonal crops. This innovative approach, combined with training in financial literacy and sustainable agricultural practices, has enabled thousands of smallholder farmers to improve their livelihoods [3].
Platcorp's commitment to empowering women entrepreneurs is evident in their lending practices. A significant share of their loans prioritizes women, aiming to increase their access to formal credit and foster economic participation [1].
The company's focus on climate-resilient agriculture is also noteworthy. While agricultural loans represent about 10% of Platcorp’s portfolio due to the risks involved, they have financed over 37,000 agricultural clients, mainly smallholder farmers or those involved in the smallholder farming value chain [2].
International development finance institutions like Swedfund have recognised Platcorp's role in advancing inclusive economic development in the region. Swedfund has signed a $10m debt deal with Platcorp, with up to 50% of the loan supported through an EU guarantee from the European Fund for Sustainable Development Plus (EFSD+) [4]. This is Swedfund's fourth investment in Platcorp, following earlier loans in 2018, 2020, and 2022 [5].
Platcorp's philosophy is to only lend to people if they end up being better-off afterwards. To ensure this, they offer technical assistance to their borrowers, including employing agronomists and providing on-the-ground advice to farmers [2].
In addition to agriculture, Platcorp extends credit to the trade and retail sectors, provides loans for affordable housing upgrades, and works to improve education [1]. Their repeated financing support from institutions like Swedfund reinforces their role in fostering growth in underserved markets, creating decent jobs, and supporting economic inclusion and sustainability in communities traditionally excluded from formal financial systems [1][2][3][5].
References:
[1] Platcorp Holdings Limited. (n.d.). Retrieved from https://www.platcorp.com/
[2] Platcorp Holdings Limited secures $10m investment from Swedfund. (2023, March 15). Retrieved from https://www.businessdailyafrica.com/corporate-news/platcorp-holdings-limited-secures-10m-investment-from-swedfund/
[3] Platcorp's work with smallholder farmers in Kenya. (n.d.). Retrieved from https://www.platcorp.com/news/platcorp-works-with-smallholder-farmers-in-kenya/
[4] European Fund for Sustainable Development Plus (EFSD+). (n.d.). Retrieved from https://ec.europa.eu/info/business-economy-euro/banking-and-finance/structural-funds/how-it-works/funds/efsd-plus_en
[5] Platcorp's agriculture portfolio grows significantly. (2024, December 15). Retrieved from https://www.businessdailyafrica.com/agriculture/platcorp-agriculture-portfolio-grows-significantly/
- Platcorp Holdings Limited, a financial services company, is significantly impacting East and Southern Africa by offering development finance to underserved businesses and individuals, particularly micro, small, and medium-sized enterprises (MSMEs).
- The company focuses on lending to rural and very small-scale businesses, such as roadside vegetable sellers, agricultural input vendors, and small traders, providing them with funding averaging around $320.
- Platcorp's innovative approach allows farmers to use their cattle as collateral, enabling smallholder farmers to upscale their businesses and expand into seasonal crops, while also providing financial literacy training and sustainable agricultural practices.
- Platcorp prioritizes lending to women entrepreneurs to increase their access to formal credit and promote economic participation, contributes to climate-resilient agriculture, finances over 37,000 agricultural clients, and extends credit to the trade and retail sectors, affordable housing upgrades, and education.
- Development finance institutions like Swedfund have recognized Platcorp's role in advancing inclusive economic development in the region, as evidenced by a $10m debt deal supported by the European Fund for Sustainable Development Plus (EFSD+)—Swedfund's fourth investment in Platcorp.
- Platcorp's philosophy is based on the belief that they should only lend to people who will subsequently benefit, offering technical assistance such as employing agronomists and providing on-the-ground advice to farmers to ensure this principle is upheld, and continuously fostering growth in underserved markets, creating decent jobs, and supporting economic inclusion and sustainability.
