The International Finance Corporation (IFC) plans to commit up to US$52 million to expand access to financing for small businesses across East Africa, targeting enterprises in Kenya, Uganda and Tanzania.
The proposed investment, which is pending board approval scheduled for March 27, will be channeled through Platcorp Holdings, a microfinance investment management firm headquartered in Mauritius with operating subsidiaries in the three East African markets.
According to project documents, the financing aims to expand lending to micro, small and medium-sized enterprises (MSMEs), particularly businesses operating in underserved rural and peri-urban areas where access to long-term credit remains limited.
Of the total planned investment, US$27 million will be provided directly from IFC’s own account, while up to US$25 million is expected to be mobilized from development finance partners through parallel loans and B-loan structures.
The funding will take the form of four-year senior loans distributed among five Platcorp subsidiaries. Indicative allocations include US$20 million for two subsidiaries in Kenya, US$5 million for operations in Uganda, and $2 million for a Tanzanian subsidiary.
Development finance experts say the structure reflects growing efforts by multilateral lenders to deepen local currency financing in African markets, helping businesses avoid foreign exchange risks commonly associated with dollar-denominated borrowing.
The investment is also expected to support financial inclusion objectives, with IFC projecting that about 50% of supported loans will benefit women-owned enterprises. Female entrepreneurs across East Africa continue to face significant barriers to credit access, including higher collateral requirements, limited asset ownership, and weaker access to formal banking networks.
By expanding medium-term local currency lending, the initiative seeks to enable small businesses to invest in equipment, working capital, and expansion projects that can generate employment and strengthen domestic supply chains.
More Read
Platcorp Holdings manages more than US$358 million in assets and serves over one million clients through a network of 568 branches across its operating markets. The company focuses primarily on lending to small businesses and low-income entrepreneurs, although its micro-insurance and vehicle tracking services are not included in the IFC-backed program.
The planned investment aligns with broader efforts by the World Bank Group to stimulate private sector-led growth across Africa, where MSMEs account for the majority of businesses and employment but remain chronically underserved by formal financial institutions.
Limited access to affordable financing remains one of the biggest constraints facing African small businesses. Many enterprises rely on short-term or informal borrowing channels, which often carry higher interest rates and restrict long-term investment planning.
IFC officials say strengthening microfinance institutions capable of lending in local currencies represents a practical pathway to closing the region’s financing gap while supporting inclusive economic growth.
If approved, the investment is expected to increase credit availability across key sectors including agriculture, trade, transport, and small-scale manufacturing — industries that play a central role in job creation across East Africa’s rapidly growing economies.
The move also highlights rising collaboration between development finance institutions and private investors aimed at scaling sustainable financing solutions for small enterprises, particularly those led by women and operating outside major urban centers.
