Key Takeaways
- • TLG Capital, a London-based private credit fund manager, closed a $5 million debt facility for Shona Capital Zambia Limited, marking TLG's first investment in Zambia and expanding its African footprint to 21 countries.
- • The facility was deployed from TLG's Africa Growth Impact Fund II (AGIF II), which is anchored by institutional investors including the IFC, Norfund, Swedfund, and Bpifrance, with capital to be released in tranches as Shona Zambia scales its loan book.
- • Shona Zambia, founded in March 2025, targets the underserved $10,000–$100,000 SME lending segment, with loan disbursement capability within five days compared to several weeks for traditional lenders, supported by proprietary technology for credit assessment and portfolio monitoring.
- • The investment addresses a $2 billion SME financing gap in Zambia, with Shona Zambia currently serving healthcare, retail, and agriculture sectors and reporting a pipeline exceeding 1,000 potential borrowers.
- • Shona Zambia's leadership team—CEO Kayinja Mfuni, Muze Syachaba, and Micheil Banoub—brings combined 45 years of banking and microfinance experience in Zambia, with TLG serving as the lender's first institutional backer.
Summary
TLG Capital, a London-based private credit fund manager specializing in sub-Saharan Africa, has closed a $5 million debt facility for Shona Capital Zambia Limited, a Lusaka-based SME lender. The transaction marks TLG's inaugural investment in Zambia and brings its African operational footprint to 21 countries, signaling deepening market penetration in the region's underserved lending ecosystem.
The facility was deployed from TLG's Africa Growth Impact Fund II (AGIF II), an institutional-grade vehicle anchored by development finance institutions and impact-focused limited partners including the International Finance Corporation (IFC), Norfund, Swedfund, and Bpifrance. Capital will be released in tranches contingent upon Shona Zambia's loan portfolio expansion, with provisions for additional institutional guarantors and partners to join the transaction as it scales. TLG serves as Shona Zambia's first institutional backer, providing both capital and credibility in an emerging market context.
Shona Zambia, founded in March 2025, operates in the critical but underserved $10,000–$100,000 lending corridor—a segment that sits between the ceiling of microfinance institutions and the documentation requirements of commercial banks. The company leverages proprietary technology to conduct credit assessments, manage disbursements, and execute real-time portfolio monitoring, enabling loan disbursement within five days versus several weeks for traditional lenders. The platform-driven approach addresses a significant friction point in Zambia's SME financing landscape. Shona Zambia currently serves businesses in healthcare, retail, and agriculture sectors and reports a pipeline exceeding 1,000 potential borrowers.
The investment aligns with TLG's stated thesis around a $2 billion SME financing gap in Zambia, reflecting the persistent structural constraint on formal credit access for small businesses across sub-Saharan Africa. Shona Zambia's management team—comprising CEO Kayinja Mfuni, Muze Syachaba, and Micheil Banoub—collectively brings 45 years of banking and microfinance sector experience within Zambia, positioning the venture with institutional-grade operational credibility and local market knowledge essential for SME lending execution.
The facility was deployed from TLG's Africa Growth Impact Fund II (AGIF II), an institutional-grade vehicle anchored by development finance institutions and impact-focused limited partners including the International Finance Corporation (IFC), Norfund, Swedfund, and Bpifrance. Capital will be released in tranches contingent upon Shona Zambia's loan portfolio expansion, with provisions for additional institutional guarantors and partners to join the transaction as it scales. TLG serves as Shona Zambia's first institutional backer, providing both capital and credibility in an emerging market context.
Shona Zambia, founded in March 2025, operates in the critical but underserved $10,000–$100,000 lending corridor—a segment that sits between the ceiling of microfinance institutions and the documentation requirements of commercial banks. The company leverages proprietary technology to conduct credit assessments, manage disbursements, and execute real-time portfolio monitoring, enabling loan disbursement within five days versus several weeks for traditional lenders. The platform-driven approach addresses a significant friction point in Zambia's SME financing landscape. Shona Zambia currently serves businesses in healthcare, retail, and agriculture sectors and reports a pipeline exceeding 1,000 potential borrowers.
The investment aligns with TLG's stated thesis around a $2 billion SME financing gap in Zambia, reflecting the persistent structural constraint on formal credit access for small businesses across sub-Saharan Africa. Shona Zambia's management team—comprising CEO Kayinja Mfuni, Muze Syachaba, and Micheil Banoub—collectively brings 45 years of banking and microfinance sector experience within Zambia, positioning the venture with institutional-grade operational credibility and local market knowledge essential for SME lending execution.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.