Finance

Verdant Capital Invests $2mln in UsPlus to Support SMEs

Verdant Capital Invests $2mln in UsPlus to Support SMEs
Thursday, 30 January 2025 13:51

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).

On the same topic
• Presco plans $162M rights issue to raise capital• 166.6M shares offered at ₦1,420 each to shareholders• Funds to expand palm oil output, cut...
• The structure relies on asset-based security and a local bank wrapper to mitigate airline risk.• Regional operators, such as Air Ghana, are already...
• The European Investment Bank (EIB) and the European Commission will provide a blended financing package worth up to €95 million ($110 million) to...
Yango Group, through its $20 million venture fund, has made a strategic investment in Zanifu, a Kenyan B2B fintech specializing in inventory...

Most Read
01

Côte d’Ivoire traced 40% of cocoa for 2024/25 season Most cocoa remains untracked due to info...

With 40% of Its Cocoa Traceable, Côte d’Ivoire Faces a Race to Meet New E.U. Standards
02

• World Bank raises 2025 growth forecasts for Benin, Mali, Burkina, Côte d’Ivoire• Senegal and Niger...

World Bank Revises Up 2025 Forecasts for Four WAEMU Countries, Amid Falling Inflation
03

• AfDB chief Sidi Ould Tah met BOAD president Serge Ekué in Abidjan on Aug. 30.• Talks focused on jo...

AfDB, BOAD join forces to expand financing for West Africa projects
04

• UAC of Nigeria acquired CHI Limited, known for Chivita juices and Hollandia dairy, from Coca-Cola ...

UAC of Nigeria Takes Control of CHI Limited, Former Coca-Cola Subsidiary
05

IFC will provide up to $40 million to Banque Islamique du Sénégal (BIS) under a Mourabaha agr...

IFC Lends $40 Million to Senegal’s Islamic Bank to Triple SME Loans
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.