Absa becomes first African financial institution to invest in Lendable's blended-finance strategy

Lendable, a leading provider of asset-backed credit to fast-growing companies globally, and Absa, a leading pan-African financial services provider, today announced Absa’s participation in Lendable MSME Fintech Credit Fund 2 (LMFCF2), Lendable’s blended-finance vehicle backing next-generation financial services companies across emerging markets. Absa has invested in the Fund’s senior notes and provided a subscription line to support the Fund’s deployment of capital. The investment marks the first time an African bank has participated in the strategy and coincides with LMFCF2’s final close, with the Fund closing oversubscribed at US$255 million. Its senior tranche carries an investment-grade rating, a relatively uncommon feature among blended-finance vehicles.

Absa’s participation signals growing African financial institutional interest in global, technology-enabled credit strategies, and marks a notable step in bringing African capital into Emerging Market private credit investments, an asset class historically dominated by international development finance institutions, family offices and foundations. Absa’s capital, alongside other investors, will be deployed to support the next generation of financial services companies in Africa, Asia and Latin America that expand financial access for underserved MSMEs and individuals.

For Absa, the investment aligns with its broader strategy to mobilise capital towards opportunities that support sustainable and inclusive economic growth, while expanding its participation in innovative financing solutions across emerging markets. The bank’s participation provides exposure to a diversified, asset-backed portfolio of loans to fast-growing fintech lenders across emerging markets, underpinned by Lendable’s technology and data-led underwriting approach and its proprietary Maestro risk engine.

For Lendable, welcoming Absa as an investor is a milestone moment. It is the firm’s first African bank investor and signals a broader shift: domestic institutions are increasingly ready to co-invest alongside DFIs and international investors in the very markets Lendable’s strategy is designed to serve. Lendable sees this as an important validation of its approach, and as evidence that the pool of capital available to fund financial inclusion across Africa is widening beyond traditional development finance sources.

Chris Wehbe, CEO of Lendable, commented: “When a leading African bank chooses to invest directly in a strategy funding growth across its own continent, that’s a powerful vote of confidence – both in Lendable and in the underlying businesses we back. Absa’s participation tells us that local institutions see the same opportunity international investors have backed for years, and that they’re ready to invest in it on their own terms. We expect this to be the first of many such partnerships.”

Shyam Ganda, Lead Specialist: Banking at Absa Corporate and Investment Banking, said: “The significance of this transaction extends beyond the investment itself. It shows how African financial institutions can participate more actively in global private credit markets and work with international investors to channel capital into businesses that serve the real economy. As these markets continue to develop, partnerships such as this can help broaden the sources of capital available to high-growth businesses while strengthening the links between African and global financial markets.”

LMFCF2 provides asset-backed capital to next-generation financial services companies leveraging Lendable’s technology and data to expand financial access for underserved populations, and forms part of Lendable’s broader mission to back high-impact, technology-enabled businesses driving inclusive and sustainable growth across developed and emerging markets.