In the coming years, intra-African trade, especially through the AfCFTA, could boost factoring by making inter-business transactions easier. Currently, the factoring market is still largely controlled by South Africa.
Verdant Capital has made a $2 million mezzanine investment in UsPlus, a South African company that helps small and medium-sized businesses (SMEs) with working capital financing. The investment, structured as junior convertible bonds, is aimed at expanding UsPlus’s factoring operations in South Africa, where access to credit remains a challenge for many SMEs.
"The Fund’s investment will strengthen UsPlus’ capital position and help “crowd-in” more senior debt funding into the business to further grow its balance sheet," said Verdant Capital in a statement.
According to the International Factoring Association (FCI), the African factoring market was valued at around $40 billion in 2023, showing growth but still small compared to the global total of over $3.7 trillion. South Africa dominates the sector, accounting for more than 80% of factoring volumes on the continent, followed by Egypt, Morocco, Kenya, and Tunisia, whose shares remain limited.
Founded in 2015, UsPlus provides financing solutions to local businesses struggling with traditional credit access. The company focuses on manufacturers, logistics providers, farmers, and renewable energy businesses, while also supporting women-led enterprises and sustainable initiatives.
With a portfolio of $38 million and a goal to reach $100 million by mid-2025, the Verdant Capital Hybrid Fund focuses on investments in inclusive financial institutions across Africa, targeting fintech companies and institutions that support micro, small, and medium-sized enterprises (MSMEs).
• WAEMU’s inflation dropped from 2.2% in March to 1.5% in April 2025• BCEAO attributes the decline t...
This launch is a significant milestone that highlights Rwanda's ongoing digital transformation. With...
BCEAO lowers main rate from 3.50% to 3.25% effective June 16, 2025 Inflation eased to 2.3% in...
• FirstRand receives approval to take over HSBC's South African assets, clients, and staff• Move sup...
Egypt signs deals to import up to 290 LNG cargoes over 30 months, starting in July Trafigura,...
• Eutelsat’s OneWeb launches a satellite ground station in Luanda-Bengo, Angola• Station will connect low-Earth-orbit satellites to telecom infrastructure...
Vodacom to build 106 telecom towers in rural KwaZulu-Natal with $5.6 million investment Expansion aims to close the digital divide and boost...
Government unveils plan to boost cybersecurity after attacks on public platforms Measures include firewalls, training, audits, and a new national...
Solar Panda acquires Zambia’s VITALITE, expanding reach across Southern Africa Company now serves over 450,000 households across Kenya, Senegal,...
Kakum National Park is a protected area located in Ghana’s Central Region, near the city of Cape Coast. Established as a forest reserve in 1931 and...
Located in the Seychelles archipelago, over 1,100 kilometers southwest of Mahé, Aldabra is one of the largest coral atolls in the world. It is composed of...