EAST AFRICA – Swedfund, a Swedish development financier, has approved a loan of EUR 5 million (US$5.5m) to Platcorp, a market leader in financing SMEs, in Kenya, Uganda and Tanzania to support SMEs in the tracks of Covid-19.
Platcorp was founded in Kenya in 2003 and expanded to Uganda in 2004 and Tanzania in 2008. Platcorp has a loan portfolio in the three countries of US$ 160 million. In 2019, Platcorp paid out approximately 826,000 loans to its customers.
Platcorp is a leading provider of financing and lending to SMEs in East Africa. This is the second loan from Swedfund to Platcorp. The first loan was issued in 2018.
“It is important for us as a development financier to strengthen the companies’ financial resilience and to protect jobs in developing countries,” says Maria Håkansson, CEO Swedfund.
“The Platcorp Group has a broad and effective platform for access to financing for small and medium-sized companies in East Africa, which enables us to reach and support even more companies, which is in line with our mission.”
With support from Swedfund’s funds for Technical Assistance, TA funds, Platcorp has further developed its sustainability functions, including by introducing a group-wide environmental and social management system.
Swedfund is Sweden’s development financier for sustainable investments in developing countries. To reach the goal: a world without poverty, more jobs are needed in the private sector and access to renewable energy is increasing. The investments are therefore made within energy & climate, health and to reach small and medium-sized companies.
As a state company, Swedfund is managed by the Ministry of Trade and Industry. The operations are financed partly through capital injections for which the Ministry of Foreign Affairs is responsible and through reflows from its own portfolio.
Swedfund was founded in 1979 and since its inception has made more than 240 investments in more than 60 countries.