Announcing a new phase of partnership with EFAfrica Group
Small Foundation is pleased to announce a new phase of partnership with EFAfrica Group (EFAG), through a commitment to provide the Tanzanian-headquartered equipment leasing company with additional funding to support its trajectory and growth.
With over a decade of operations in Tanzania and 3+ years in Kenya, EFAG has become a leader in non-banking financial institution (NBFI) equipment financing for MSMEs. EFAG is now expanding operations to Zambia, further solidifying its presence and impact across the region. We consider this a significant indicator of EFAG’s potential to scale its business model across Eastern and Southern Africa.
EFAG’s performance and profitability over the last few years has been strong, and it has demonstrated a solid track record of activating new leases. Small Foundation is particularly invested in EFAG’s commitment to bridging the gap between agricultural MSMEs and financial institutions by offering collateral solely on financed equipment, efficient loan processing with minimal paperwork, and appropriately sized term loans for equipment—filling a niche in ticket size and geography.
“We are thrilled about this opportunity to continue supporting a long-time partner whose work we truly value and believe in. EFAG’s prospect of expansion is remarkable and its dedication to continue improving income generating abilities for MSMEs through productive asset financing is a cause we are very glad to support. We are confident that this additional round of funding will propel EFAG and its subsidiaries into a new phase of growth and impact and we are excited to support this journey.”
– Michael Thompson, Investment Manager at Small Foundation
This additional funding round from Small Foundation will support EFAG’s expansion and its commitment to providing smallholder farmers and MSMEs with productive assets to sustain their operations. Since 2013 EFAG has financed over 4,000 leases, exceeding US$100M in equipment. This includes over 1,300 tractors, nearly 700 implements for agriculture and over 800 trucks.
We look forward to seeing other investors join EFAG in creating impactful change in the MSME equipment financing space. We hope our continued support over the years encourages more investors to join hands with EFAG and make equipment financing more accessible across sub-Saharan Africa.
“We very much appreciate our long-standing partnership with Small Foundation, who have been a great supporter, showing flexibility and commitment to helping the business grow profitably to enable the delivery of sustainable impact by providing access to productive equipment finance for MSMEs and farmers in Tanzania, Kenya and, most recently, Zambia. Our equipment creates jobs, improves food security and builds climate change resilience and mitigates its effects. We look forward to other equity and debt funders joining our cornerstone investors, including Small Foundation, to further scale up the business.”
– Michiel Timmerman, Co-Founder and Chair, EFAfrica Group
