UK trade finance provider Zvilo launches South African operations targeting R2bn in SME working capital

UK-based trade finance provider Zvilo has launched its South African operations, targeting an initial R2 billion (USD 120.19 million) in working capital funding for small and medium-sized enterprises (SMEs).

The company plans to scale its deployment to R10 billion within 3 to 5 years, addressing a critical financing gap in the South African market.

Addressing South Africa’s SME financing gap

Zvilo aims to tackle South Africa’s estimated R350 billion (USD 21.03 billion) SME financing gap by providing working capital through local supply chains. The initial R2 billion target is aligned with anchor buyers listed on the JSE, according to the company.

SMEs contribute 60% of employment in South Africa and around 90% of the continent’s business.

Working capital helps businesses cover day-to-day expenses, including paying suppliers, purchasing stock, and meeting operating costs while waiting for customer payments.

Zvilo plans to combine its capital deployment with a technology platform designed to improve access to working capital for businesses across South Africa.

Admir Imami, Founder and Group CEO at Zvilo, noted that limited access to finance continues to constrain SME growth, with many businesses struggling to secure funding through traditional channels.

The company’s approach focuses on injecting liquidity into local supply chains and supporting businesses operating at different stages of the value chain.

Local leadership team appointed

Peter Maila has been appointed CEO of Zvilo Africa. He previously served as Co-Chief Investment Officer at Dutch entrepreneurial development bank FMO, where he led private equity investment activity focused on Africa.

Palesa Mabasa and Shiko Mbambu will lead Zvilo South Africa as Managing Partners. Mabasa previously headed SME funding business development at a major South African financial institution, while Mbambu worked as a senior coverage banker at a South African corporate and investment bank.

Beyond South Africa

Beyond its South African launch, Zvilo views the local operation as a potential base for expansion into other African markets, positioning the company to address financing challenges across the continent.

As per a Bloomberg article, Zvilo targets €950 million in annual disbursements by 2028 and €2 billion by 2030. Having entered South Africa in July with a R2 billion ($120 million) working capital commitment, half of which is already secured, the company aims to scale this to 10 billion rand within three to five years, ultimately making South Africa its largest market by the end of the decade.

To bridge the severe late-payment gap affecting regional small- and medium-sized enterprises, Zvilo is partnering with South Africa’s top 20 listed companies as anchor buyers, charging a 1% to 2% invoice fee while unlocking trapped credit.

The company is also planning a multi-country rollout spanning Sierra Leone by the end of 2026, followed by Nigeria, Kenya, Egypt, Ivory Coast, and Tanzania by 2028, and Ghana and the DRC in 2029.