Swedfund, Sweden’s development finance institution, has signed a $10 million loan agreement with Platcorp Holdings Limited to boost access to finance for micro, small, and medium-sized enterprises (MSMEs) across East and Southern Africa. The funding will target businesses in Kenya, Uganda, Tanzania, and Zambia, with the aim of strengthening financial inclusion and supporting sustainable economic growth.
Supporting regional enterprise development
Platcorp Holdings Limited is a financial services provider operating in multiple African markets, focusing on delivering credit solutions to underserved segments. The loan from Swedfund is intended to expand Platcorp’s capacity to lend to MSMEs, which are widely regarded as the backbone of local economies. By improving access to capital, the agreement is expected to stimulate entrepreneurship, job creation, and long-term resilience in the targeted countries.
Bridging the financing gap
In many African economies, MSMEs face persistent difficulties in obtaining credit from traditional banks, largely due to limited collateral and higher perceived risk. Development finance institutions like Swedfund play a critical role in addressing this gap by providing long-term capital under concessional terms. The $10 million facility will allow Platcorp to extend more loans to small businesses, particularly those led by women and young entrepreneurs, who often struggle the most to secure financing.
Impact in four markets
Kenya, Uganda, Tanzania, and Zambia are expected to be the main beneficiaries of the new financing. Each of these countries has a vibrant SME sector that contributes significantly to employment and GDP, yet many enterprises operate below potential because of restricted access to funding. Swedfund’s support is designed to strengthen local economies, encourage financial inclusion, and promote sustainable business practices.
Swedfund’s development mandate
As Sweden’s development finance institution, Swedfund combines investment capital with a focus on sustainable impact. Its mandate prioritises poverty reduction, gender equality, and climate responsibility. By partnering with Platcorp, Swedfund is seeking to channel capital to regions where access to finance can have the most transformative effect. The institution has emphasised that the loan is not only about financial returns but also about measurable development outcomes.
Encouraging sustainable growth
The loan facility is expected to help MSMEs expand operations, invest in new technologies, and strengthen supply chains. For governments in the region, better access to credit could translate into higher tax revenues and stronger private sector participation in national development strategies. In the long run, this type of financing can support structural economic transformation, making local economies more resilient to external shocks.
Outlook for African MSMEs
The agreement reflects growing recognition of the importance of small businesses in Africa’s development trajectory. As global institutions and investors look for impactful opportunities, partnerships like the Swedfund–Platcorp loan demonstrate how targeted finance can address systemic challenges while fostering inclusive growth. For MSMEs in Kenya, Uganda, Tanzania, and Zambia, the deal represents a significant step towards breaking down financial barriers and unlocking potential.
REFH – Newshub, 3 September 2025
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