Shona Capital Raises $5M To Tailor Financing For Zambian SMEs
🙌 Funding for Zambia
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Shona Capital is a lender based in Zambia that provides credit and support to small businesses.
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They just secured $5M funding for scaling.
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Invesor check. TLG Capital structured the deal through their Africa Growth Impact Fund IIm with their first investment deal in Zambia.
💵 Helping the Middle
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Local businesses in Zambia deal with a massive $2B shortage in funding. They are often stuck between micro-loans and big banks.
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Banks usually demand physical assets or piles of paperwork that these firms do not have. This keeps them from growing or hiring more people.
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Providing credit to these companies is a way to create jobs and support the national economy. Shona Capital focuses on these specific "missing middle" firms.
💨 Faster Lending
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The 'missing middle' that Shona is filling is the $10K to $100K lending range.
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Their model assists borrowers get their money within 2-5 days after application.
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This keeps the momentum going for busy shop owners and producers. The easy entry point is an advantages for businesses to start and establish a long-term line of credit.
🇿🇲 Looking Ahead
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This fresh money will help them reach hundreds more SMEs across Zambia. They want to make credit accessible outside of just the big cities.
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They also plan to use better tech to make the loan process even more efficient. This means less waiting for the people running the shops.