Equipment Finance for Africa Group Ltd

EFAfrica Group (EFAG) is an East African group operating with Tanzanian and Kenyan finance companies that specialise in serving MSMEs and farmers with equipment loans that are critical to their ability to develop and scale. Small Foundation provided seed funding for the development of EFAG, which brought $12 million from equity investors and was critical to financing EFAG’s Tanzania operation during the pandemic, as well as its expansion into Kenya. This built on our prior engagement with Equity for Tanzania (EFTA), EFAG’s first initiative.

EFAG’s goal is to increase agricultural productivity and create sustainable employment, mitigating poverty by improving rural livelihoods and economies. EFAG’s initiative EFTA was set up to bridge the ‘missing middle’ financing gap for agricultural ventures, enabling MSMEs to access finance quickly with no collateral requirements and flexible repayment schedules. Small Foundation’s support has empowered EFAG to increase lending to more MSMEs in more countries, enabling them to increase revenues, improve business operations and improve the quality of life for owners and employees. By demonstrating they are a viable market segment, other lenders are starting to lend to these MSMEs.

Blog posts:
Equipment Finance for Africa partnership expansion

Practice area: Investments
Investment years: 2016-present
Region: Kenya & Tanzania