Verdant Capital (www.Verdant-Cap.com) believes that the true measure of investment goes beyond capital deployed and financial returns. It is also reflected in the businesses that grow, the jobs they create and the lives they help transform.
In 2025, the Fund took an important step towards strengthening its impact measurement approach by commissioning 60 Decibels (https://apo-opa.co/4dAqYdi) to build an industry-standard impact management framework and conduct independent impact measurement across its investment portfolio. Job creation is Verdant Capital Hybrid Fund’s primary impact objective, and the studies were designed to strengthen the Fund’s understanding of how its investments contribute to employment and broader economic opportunities.
As part of this process, VCHF developed an impact thesis for each investee, and commissioned baseline studies to understand who its investees reach, how their services influence the lives of their customers and, most importantly, their contribution to job creation.
The findings provide an important baseline for tracking impact over time, combining investee-level data with insights from end customers on how access to finance is influencing their businesses and households.
“Our conviction has always been that the right capital, combined with hands-on technical support, can help African financial service providers reach underserved businesses, create jobs and improve livelihoods.” said Edmund Higgenbottam, Chief Executive Officer of Verdant Capital. “Our first impact studies provide encouraging evidence of this, but this is only the beginning. We are committed to using the data and insights from these studies to strengthen our approach and deepen our impact measurement”.
Key Impact Highlights as of 31 December 2025
VCHF has made six investments in inclusive financial institutions to date: WATU, Mogo, LOLC Africa, Zeepay, UsPlus and Bfree. Through these investments, the Fund helps expand access to financial solutions that enable individuals and small businesses to grow their enterprises, strengthen their incomes and contribute to employment generation. The highlights above are drawn from independent 60 Decibels studies with over 850 customers across four investees.
Looking ahead, VCHF has USD 51 million in AUM and plans to grow its portfolio through additional investments and expansion into new markets over the coming years. The Fund is also seeking to mobilise additional capital from investors who share its commitment to delivering commercial returns alongside measurable impact.
Beyond the numbers are the stories of individuals accessing financial services, entrepreneurs expanding their businesses, households strengthening their livelihoods and businesses contributing to more resilient value chains.
This report marks an important milestone in VCHF’s impact journey. It strengthens the Fund’s understanding of the outcomes associated with its investments and reinforces its commitment to measuring not only the scale of its reach, but also the changes experienced by the people and businesses behind the numbers.
Verdant Capital extends its sincere appreciation to its partner, KfW Development Bank, for its continued support, and to its investees for their commitment and collaboration throughout this process.
Verdant Capital also extends its appreciation to 60 Decibels for its valuable partnership as the impact measurement advisor, as well as to the entire Verdant Capital Hybrid Fund team for its dedication and contribution to this important milestone.
Together with its partners, VCHF continues to demonstrate that commercial returns and meaningful impact can go hand in hand.
Read the full report here: Click Here (https://apo-opa.co/4B26qV8)
About Verdant Capital:
Verdant Capital is a leading pan-African investment manager and investment bank specialising in private credit and private equity markets. www.Verdant-Cap.com
About Verdant Capital Hybrid Fund:
Verdant Capital Hybrid Fund (VCHF) is a pan-African investment fund managed by Verdant Capital. The Fund provides hybrid capital to inclusive financial institutions serving micro, small and medium-sized enterprises (MSMEs) and micro-entrepreneurs. The Fund targets commercial returns alongside developmental impact, supporting financial institutions that expand access to finance, create jobs and strengthen livelihoods across Africa.
VCHF invests across a range of financial institutions, including specialist banks, microfinance institutions, leasing and factoring companies, fintechs and other non-bank financial institutions. The Fund has the flexibility to invest through a range of hybrid capital instruments including, holding company debt and subordinated debt, with a strong focus on maintaining high environmental and social standards.
The Fund is supported by a USD 4.5 million Technical Assistance Facility, which strengthens the operational, organisational, environmental and social capacity of investee institutions and forms an important part of VCHF’s post-investment value-add strategy.
About KfW Development Bank:
KfW Development Bank is the anchor investor in the Verdant Capital Hybrid Fund (VCHF). KfW supports development projects and programmes in developing and emerging countries, with a focus on sustainable economic and social development. Alongside its investment, and on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), KfW provides a Technical Assistance Facility. The Facility enables the Fund to work with its investee companies to strengthen responsible business practices, promote social inclusion and deliver positive development outcomes.
About 60 Decibels:
60 Decibels is the world’s leading customer insights company for social impact. With a network of more than 1,700 researchers across 110+ countries, they bring reach, speed, and repeatability to social performance measurement. 60dB has built the largest global dataset of impact benchmarks, with a particular focus on Financial Inclusion, Off -Grid Energy, and Agriculture.