Overview of LOLC

LOLC Holdings PLC is a Sri Lankan conglomerate that started in 1980 as Lanka ORIX Leasing Company. Over the years, it expanded beyond leasing into financial services, agriculture, leisure, renewable energy, real estate, and technology. The group has been steadily growing its footprint in Asia and Africa.

LOLC in Tanzania

LOLC entered Tanzania in 2021 by acquiring a majority stake in Tujijenge Tanzania Financial Services Limited, a non-deposit-taking microfinance institution. In 2024, the company was officially rebranded to LOLC Tanzania Financial Services, with LOLC holding around 96% ownership.

Business Model and Services

LOLC Tanzania operates primarily as a microfinance institution, offering a range of credit products:

Gari Loans: Financing for new or used vehicles, even those not yet registered.

Biashara Loans: Working capital support for micro, small, and medium enterprises.

Salary Loans: Loans for employees in both government and private sectors.

Personal Loans: General-purpose credit solutions.

The company has a branch network of five (four in Dar es Salaam and one in Mwanza) and also provides services through an online loan application platform. It currently serves more than 80,000 clients and has disbursed loans totaling over TSh 100 billion.

Strategic Direction

LOLC Tanzania remains a non-deposit-taking institution for now, but the group’s plan is to convert it into a deposit-taking microfinance institution. This will allow the company to mobilize deposits from customers in addition to lending. Recent recruitment efforts, such as hiring for liability-side roles, suggest steps toward this transition.

To support growth, LOLC has injected new capital into its Tanzanian operations, strengthening the balance sheet and enabling expansion.

Outlook and Challenges

The move toward becoming a deposit-taking microfinance institution will require regulatory approvals and additional compliance. As with any microfinance business, LOLC Tanzania will need to manage risks around non-performing loans, ensure financial inclusion, and remain competitive against banks, other MFIs, and mobile lenders.