SHONA Capital secures sh18b to fund SMEs
In a statement, SHONA said the funding boost will let it hand out loans of between $5,000 and $100,000 to small and medium businesses, with money reaching borrowers in as little as five to 10 days.
Members of the SHONA Capital board and team members. (Courtesy photo)
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TLG Capital, a private credit firm operating across Sub-Saharan Africa, has closed a $5m (sh18.4b) facility for SHONA Capital Limited.
In a statement, SHONA said the funding boost will let it hand out loans of between $5,000 and $100,000 to small and medium businesses, with money reaching borrowers in as little as five to 10 days.
“TLG’s backing provides exactly the type of partnership that will facilitate our ambitious growth targets. This transaction sets our company up to scale and deliver on our impact goals, including a stronger focus on helping more SMEs formalise their operations and integrate into the broader economy,” he said.
The funding is aimed at formal SMEs in sectors such as food and agriculture, healthcare, retail and manufacturing, the very businesses that banks and microfinance institutions have often struggled to serve.
Isha Doshi, co-founder and partner at TLG Capital, said SHONA Capital has built a platform that understands the businesses it serves and can reach them at scale.
SHONA Capital was set up in 2022 to help close Uganda's $8.8b SME financing gap, targeting underbanked businesses in food and agriculture, healthcare, retail and manufacturing.