Press release -
Swedfund supports SMEs in East Africa with 5 million EUR
In order to support small and medium-sized companies following the Covid-19 outbreak the Swedish Development Finance Institution, Swedfund, now increases the liquidity available to these companies by lending 5 million EUR to Platcorp, a financial institution providing credit to private individuals and small and medium-sized companies, in Kenya, Uganda and Tanzania.
- It is urgent for us as a Development Finance Institution to strengthen the financial resilience of companies and protect jobs in developing countries .The Platcorp Group has a broad and efficient platform for providing access to financing for small and medium-sized companies in East Africa, which makes it possible for us to reach and support several companies which is in line with our mission, says Maria Håkansson, CEO Swedfund.
Platcorp was founded in 2003 in Kenya and expanded to Uganda in 2004 and Tanzania 2008. Platcorp has a loan portfolio across the three countries of $160million. In 2019 Platcorp disbursed approximately 826,000 loans to its clients. Platcorp is a leading provider of SME financing and payroll lending in East Africa.This is the second loan from Swedfund to Platcorp, with the first loan issued in 2018.
With support from Swedfund’s facility for Technical Assistance, Platcorp has further developed its sustainability capabilities, among other things, by introducing a group-wide Environmental and Social Management System.
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About Swedfund
Swedfund is Sweden's development finance institution for sustainable investments in developing countries. In order to achieve the goal: a world without poverty, more jobs are required in the private sector and that access to renewable energy is increasing. Investments are therefore made within energy & climate, health and to reach small and medium-sized companies.
As a state-owned company, Swedfund is managed by the Ministry of Enterprise and Innovation. The operations are financed partly through capital injections for which the Ministry of Foreign Affairs is responsible and through reflows from the own portfolio. Swedfund was founded in 1979 and has since the start made more than 240 investments in more than 60 countries.
