Swedfund, Sweden’s development finance institution, has announced a $15 million investment in Select Africa, a regional microfinance company operating in Eswatini, Lesotho, and Malawi, aimed at expanding access to credit for low-income public sector employees often excluded from mainstream financial systems.
The three southern African nations continue to face persistent economic challenges, including high unemployment rates, weak social infrastructure, and growing vulnerability to climate-related shocks. With global aid flows becoming increasingly unpredictable, many households are finding it difficult to maintain livelihoods or finance small-scale enterprises.
Swedfund’s investment seeks to address this gap by supporting payroll-based lending models that allow civil servants to access financing for both personal and income-generating needs. The fund’s broader goal is to foster financial resilience and drive inclusive economic growth at the community level.
“With this loan, we are expanding opportunities for low-income individuals to access credit that enhances their livelihoods and productivity—whether it’s starting or growing a small business, investing in farming, paying school fees, or building a home,” said Jane Niedra, Swedfund’s Investment Director for Financial Inclusion. “This initiative supports human development for families and, ultimately, drives local economic growth and employment creation.”
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Select Africa primarily serves teachers, nurses, and local government employees—groups that commercial banks often overlook due to lack of collateral or perceived high credit risk. Through its salary-deduction lending model, the institution minimizes default risk while helping clients establish a formal credit record and long-term financial stability.
Established in 1999 in Eswatini, Select Africa has since expanded into Lesotho, Malawi, Uganda, and Kenya, with a network of 19 branches and a gross loan portfolio totaling about $108 million.
The partnership between Swedfund and Select Africa aims to deepen financial inclusion, strengthen household income security, and promote small-scale entrepreneurship among underserved public sector workers across sub-Saharan Africa.
