ImpactAlpha, September 20 – Belgian impact investor Incofin sold its 28% equity stake in Rwanda’s Unguka Bank to Sri Lanka’s LOLC Holdings. LOLC’s Ishara Nanayakkara touted Africa’s economic and population growth as its reason for buying in.
Incofin invested $1.2 million in Unguka a decade ago through its $173 million second Rural Impulse Fund. Unguka serves roughly 1,700 clients in Rwanda.
British International Investment, which acquired a 20% stake in Unguka in 2015, remains an investor.
LOLC invests in micro and small enterprises in Asia and Africa in sectors including agriculture, construction and financial services. LOLC has made several investments in African financial services firms, including a majority stake in Nigeria’s Fina Trust Microfinance Bank in 2018.
Last year, LOLC’s Africa group landed $9 million from Verdant Capital to boost financing for micro- and small enterprises.