Improved access to loans for civil servants in sub-Saharan Africa

Eswatini, Malawi, and Lesotho face growing development challenges amid shifting global aid, with urgent needs in health, education, climate resilience, and youth employment. The countries rely heavily on international funding, vital to strengthen their economies.

Swedfund’s loan aims to support low-income individuals, who often face restrictive credit policies from banks and other financial institutions.

- With this loan we increase the possibilities for low-income individuals to secure financing that supports their livelihoods and productive activities, such as starting a small side business, expanding farming, covering education costs or building a house. This contributes to human development for many families and, in turn, fosters potential for local economic growth and more jobs, says Jane Niedra, Investment Director of Financial Inclusion at Swedfund.

Select Africa’s typical customer is employed in the public sector yet is often unable to access financing through traditional banking channels. This is usually due to the banks’ aversion to perceived higher risk customers, and the limited ability to mortgage or attach properties as security across many countries in Africa. Select primarily provides payroll loans for generally underserved and low-income civil servants, providing a pathway to a formal credit history and an improved, more resilient financial situation.

Select Africa Finance Limited is a retail financial services Group founded in 1999, with the opening of its first branch in Eswatini. The Group currently has 19 branches operating in Eswatini, Lesotho, Malawi, Uganda and Kenya and has USD 108m in gross loan book.