Verdant Capital has announced a follow-on investment of USD 4.5 million in LOLC Africa Singapore Limited (LOLC Africa) through its Verdant Capital Hybrid Fund, bringing its total investment in the company to USD 13.5 million. The latest capital injection follows the Fund’s initial investment of USD 9 million in June 2023. Both rounds are structured as holding company loans, channelled to LOLC Africa’s lending operations in ten countries, including Zambia, Rwanda, Egypt, Kenya, and Nigeria.
LOLC, founded in Sri Lanka in 1980, expanded into Africa in 2018. The Verdant Capital Hybrid Fund is LOLC Africa’s first external investor, exemplifying its catalytic investment approach. The Fund’s backing is aimed at scaling LOLC Africa’s footprint in financing micro, small, and medium-sized enterprises (MSMEs) across the continent.
The Fund has also supported LOLC Africa through its Technical Assistance Facility (TAF), providing funding for Social Ratings and Client Protection Pre-Certifications in Zambia and Egypt, with further assistance programs underway.
"LOLC is recognised as one of the top-performing global microfinance groups, and the Fund’s investment aligns with its strategy of picking the top performers in each theme or category."
The capital infusion is expected to fuel the growth of LOLC’s subsidiaries, strengthen their capital base, and enable further market expansion. With a focus on serving the bottom of the pyramid, LOLC’s business model advances financial inclusion, job creation, and income generation across multiple African markets.
This diversified investment aligns with the Fund’s goal of generating impactful returns by supporting high-performing, socially responsible financial institutions in emerging economies.
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