Lendable MSME Fintech Credit Fund (LMFCF)
LMFCF is a closed-ended debt fund, dedicated to providing debt facilities to early and mid-stage fintech companies across Africa (50%) and Asia (50%). LMFCF will focus on fintech companies that supply credit, working capital, remittances, and payment solutions to MSMEs and, to a lesser extent, to consumers, filling a market gap left by traditional debt providers. It is expected that 95% of the Fund will be allocated to SIFEM eligible countries.
The COVID-19 pandemic and its ensuing economic uncertainty has negatively affected investments in the fintech sector. Access to funding has become more difficult for early to mid-stage fintech companies in frontier and emerging markets. SIFEM’s investment in LMFCF addresses this financing gap and can help drive financial innovation in this sector (SDG 9). By supporting the activities of fintech companies in Africa and in Asia, SIFEM’s investment is also expected to contribute to financial inclusion by promoting access to finance for MSMEs as well as for unbanked and underbanked populations (SDG 10).