Swedfund, Sweden’s development finance institution, has pledged $15 million to Select Africa, a microfinance group active in Eswatini, Lesotho, and Malawi. Select Africa offers formal credit to underserved public-sector workers across the region.
Many low- and middle-income civil servants such as teachers, nurses, local administrators are often excluded from traditional bank lending because of limited collateral or perceived risks. This funding drives a payroll-based loan model, letting repayments automatically come from salary, lowering risk and helping build formal credit tracks.
The three target countries all grapple with economic headwinds like High unemployment, Weak public services and Vulnerability to climate shocks.
With global aid flows becoming more unpredictable, local means of financial support are critical. Swedfund’s investment is meant to strengthen household resilience, seed small enterprises, and boost growth at the community level.
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Select Africa specializes in civil-servant lending via payroll deductions. The firm started in Eswatini in 1999 and has since scaled into Lesotho, Malawi, Uganda, and Kenya. Today, it operates 19 branches and oversees a loan book of about $108 million.
Under the new arrangement, Swedfund’s capital will enable thousands more public-sector workers to access credit for education, housing, income-generating projects, and daily expenses.
For both Select Africa and Swedfund, this isn’t just about loans. It’s about giving people access to formal financial tools, enabling civil servants to start side businesses, moving low-income borrowers into formal systems and injecting capital into communities often bypassed by larger institutions.
The hope: over time, these effects ripple outward — more jobs, better income stability, stronger local economies.
Swedfund’s $15 million backing of Select Africa marks a targeted push to bring credit to civil servants in Eswatini, Lesotho, and Malawi. By using payroll-based lending, the partnership aims to reduce barriers, build credit access, and catalyze local growth. It’s a strategic effort at the intersection of financial inclusion, social resilience, and sustainable economic development.