London, June 2019
TLG Capital announced today a $10m investment in Platcorp Holdings Limited (Platcorp), through its Credit Opportunities Fund (COF). Platcorp has subsidiaries in Kenya, Uganda and Tanzania. The facility offers Platcorp the optionality to leverage both hard and local currency capital, helping meet demands of its businesses. This is TLG’s first local currency financing for private investments, hedging its risk with MFX Currency Hedge Solutions. It is also marks TLG’s first investment in Tanzania, adding to its East African portfolio of Uganda, Kenya and Rwanda. TLG remains committed to its investment thesis of providing much needed capital to SMEs across Sub Saharan Africa (SSA).
Indeed, SMEs in SSA have limited access to capital from banks, which tend to focus on larger corporates and government products. This lack of access to finance for SMEs is a key factor restricting growth and ultimately affects job creation. According to IFC, four out of five new job opportunities in emerging and frontier economies are created by SMEs and they account for up to 33% of GDP. TLG’s investment comes at a time when Platcorp’s growth trajectory is strong and it continues to utilise its existing footprint to grow to new heights.
“We are delighted to attract investment from TLG Capital. Platcorp’s growth trajectory continues to be very exciting with our sustained and deep understanding of financial services in the region”, said Brett Sievwright, Group CEO. “TLG’s experience on the continent adds credence to Platcorps value proposition and we look forward to building our relationship with them. We remain committed to improving the lives of individuals through financial inclusion and partnerships with similar minded financiers, like TLG.”
“Platcorp is poised for significant growth, servicing clients across East Africa and we are pleased to announce our partnership with them today”, said Saad Sheikh, Principal at TLG Capital. “Platcorp has an outstanding management team with best in class credit processes. Their products are transforming lives, providing the unbanked with access to financing and scaling businesses. We are excited to help grow Platcorp’s reach and footprint. Platcorp has built a solid foundation and is geared for its next growth phase. With the necessary infrastructure in place, the group intends to significantly increase its operating leverage in years to come. This investment further demonstrates TLG’s resolve to create jobs through financial inclusion across its investment landscape.”
“Platcorp has an outstanding management team with best in class credit processes. Their products are transforming lives, providing the unbanked with access to financing and scaling businesses.”
About Platcorp Group:
Platcorp’s core business is investment in micro-finance and non-banking lending subsidiaries that initially focused on providing services primarily to civil servants across the East African region. The Group has since diversified into targeting a larger group of prospective clients outside the government payroll with various products and services including micro-insurance products, asset-financing, payroll lending to private sector clients and traditional microfinance products such as group loans and SME lending. As of December 2018, the Group’s total number of customers was 380,185 served through 315 branches with 5,100 employees. Find out more.