South Africa: IFC backs digital lender Lula
IFC’s $10 million loan will help unlock working capital for thousands of MSMEs.
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The International Finance Corporation (IFC) has announced a local currency loan to South African digital lender Lula.
IFC’s 170 million rand loan ($10 million equivalent) will help unlock working capital for thousands of micro-, small- and medium-sized enterprises (MSMEs) in South Africa.
Lula provides uncollateralised, fully digital loans to businesses that traditional banks often overlook due to their lack of formal credit history or collateral. About 90% of Lula’s clients are first-time business borrowers.
“At Lula our mission is to empower every SME in South Africa to succeed, because when small businesses thrive, our entire economy and society move forward,” said Trevor Gosling, CEO of Lula. “This partnership with IFC will enable us to extend more working capital to more SMEs, fueling their growth and long-term success. We’re excited to work alongside IFC to drive meaningful impact for SMEs.”
IFC’s vice president for Africa, Ethiopis Tafara, said, “Our partnership with Lula leverages its innovative digital model to expand access to finance for South Africa’s small businesses – empowering entrepreneurs to create jobs and drive a more resilient, inclusive economy.”
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