Lula Secures USD 10 M Loan From IFC For SME Financing In South Africa

The International Finance Corporation (IFC) has extended a ZAR 170 M (USD 10 M) local-currency loan to South African digital lender Lula, aiming to expand working-capital access for micro, small and medium-sized enterprises (MSMEs).

Lula provides unsecured, fully digital loans to businesses typically excluded by traditional banks due to limited credit history or lack of collateral. CEO Trevor Gosling said the partnership will enable the lender to reach more SMEs: “When small businesses thrive, our entire economy moves forward.”

IFC said the facility leverages Lula’s digital model to widen financial inclusion and supports its broader push for local-currency financing in Africa, reducing currency-mismatch risks for borrowers who earn in rand but often face foreign-currency debt.

By targeting underserved SMEs, the loan is expected to catalyse growth among firms that underpin South Africa’s employment and economic resilience.