Lula specialises in delivering unsecured, fully digital loans to businesses typically overlooked by traditional banks—firms without formal credit history or collateral.

Trevor Gosling, Lula’s Chief Executive, said the partnership will make it possible to channel additional working-capital financing to SMEs.

“Our mission is to empower every SME in South Africa to succeed, because when small businesses thrive, our entire economy and society move forward. This partnership with IFC will enable us to extend more working capital to more SMEs, fuelling their growth and long-term success.”

From IFC’s side, the organisation emphasises that the loan capitalises on Lula’s innovative digital operating model to widen financial access for South Africa’s small businesses.

Ethiopis Tafara, IFC’s Vice-President for Africa, said:

“Our partnership with Lula leverages its innovative digital model to expand access to finance for South Africa’s small businesses – empowering entrepreneurs to create jobs and drive a more resilient, inclusive economy.”

This transaction aligns with IFC’s broader strategic push to increase local-currency financing across Africa, thereby reducing currency mismatch risk for borrowers whose revenues are generated in local currency but whose debt might otherwise be denominated in foreign currency.

Accessibility of funding in Rand supports fiscal stability and strengthens the capacity of domestic firms to grow sustainably.

By targeting MSMEs—often deemed high-risk or underserved by conventional banks—this financing could help drive growth among firms that constitute a large portion of employment and economic dynamism in South Africa.

Lula’s fully digital, first-time borrower focus may enable faster, more inclusive capital deployment.