In a significant development for Africa’s financial landscape, TLG Capital, a leading pan-African alternative asset manager, has announced a strategic partnership with BFREE, a pioneering ethical debt collection startup based in Nigeria.
The collaboration sees TLG providing a US$3m facility to support BFREE to revolutionise ethical loan collection services across the continent, aiming to transform combative practices with a more just approach.
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BFREE, with its human-centric approach, collaborates with borrowers to restructure outstanding debts, preserving the financial well-being and dignity of millions of borrowers while educating them about credit and financial literacy. The startup leverages innovative data and generative AI tools to extend financial literacy across Africa at a scale that would not be possible for human loan officers, given the small loan sizes.
TLG Capital’s strategic investment enables BFREE to acquire non-performing loan books from commercial and microfinance banks in Africa, implementing ethical recovery practices through its advanced collection system. This relieves the financial pressure on both banks and their borrowers, fostering sustainable development.
Julian Folsbach, BFREE’s CEO, expressed his excitement about the partnership, stating, “BFREE is building a more inclusive financial system in Africa. The TLG team gets this massive opportunity, and their creative approach to structuring and incredible network across Africa made them a critical partner for our business.”
Isaac Marshall of TLG’s team commented, “Everyone investing in Africa knows the problem of scale in retail and SME lending, especially with regard to collections. BFREE has built a practical process to instill a sense of care and dignity into loan collections. We’re extremely excited to be a part of the transformation of the lending ecosystem that they’re going to bring about.”
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Beyond financial considerations, TLG Capital’s investment in BFREE resonates deeply with key Sustainable Development Goals (SDGs), including SDG 1 (No Poverty), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 16 (Peace, Justice, and Strong Institutions). By championing ethical debt collection practices and promoting economic empowerment, this collaboration contributes significantly to sustainable income growth and the advancement of economic development in Africa.
Citations:
[1] https://techcrunch.com/2022/12/06/future-africa-teams-up-with-tlg-capital-to-set-up-25m-venture-debt-fund-for-portfolio-companies/
[2] https://tlgpharma.com/tlg-capital-launches-africa-credit-opportunities-fund/
[3] https://tlgcapital.com
[4] https://uk.linkedin.com/company/tlg-capital
[5] https://www.linkedin.com/posts/ilmarshall_tlg-capital-launches-50m-debt-facility-activity-7140263124963598337-pgNL
