Categories: Stories

French firm ready to acquire MicroKing

Microcred Group and AfricInvest Financial Sector Fund have agreed a deal to acquire MicroKing Finance (MicroKing),  a micro lending subsidiary of AfrAsia Zimbabwe Holdings Limited, the French firm said today.

The deal, which is pending regulatory approval, will see Microcred acquire 70 percent of MicroKing’s issued share capital with AfricInvest taking up the remaining 30 percent.

Microcred has operations in six other African countries — Nigeria, Mali, Ivory Coast, Madagascar, Senegal and Tunisia as well as in China — while AfricInvest is a pan-African private equity fund manager.

The two investors said they believe that MicroKing remains a strong brand with a good staff base and will provide multifaceted support to MicroKing to ensure its long-term growth and competitiveness.

“We are very excited to support MicroKing and the work carried out by its team those last few years. We wish to make a useful contribution to the development of financial inclusion in Zimbabwe and thus, support a dynamic and entrepreneurial population,” said Arnaud Ventura, Microcred Group’s chief executive in a statement.

MicroKing was put up for sale when Mauritius-based AfrAsia Bank (ABL) Limited exited the country in February last year, leading to the liquidation of its local banking unit and asset manager AfrAsia Capital Management (ACM). It was established in 2001 and now has a wide footprint across Zimbabwe.

Julius Tichelaar, Senior Manager at AfricInvest, said: “AfricInvest is proud to partner with one of the leading providers of financial services on the continent and to further strengthen the AfricInvest footprint in Zimbabwe.”

“AfricInvest will provide support in the transformation to bring MicroKing back to its position of a leading provider of financial services to entrepreneurs and to make it a catalyst for further financial inclusion in the country.”

AfricInvest said it will follow in the recapitalization plan post investment.  MicroKing is expected to undergo a comprehensive turnaround strategy to align its operations with that of the Microcred network.

“We are extremely excited about this acquisition, and we strongly believe it will usher in a new era in our quest to be the leader in providing financial services and products to the informal markets in Zimbabwe. We are convinced that the latent potential that has always been in MicroKing will be unlocked to the benefit of our clients and various partners,” said Lloyd Borerwe, acting Managing Director of MicroKing.

The combination of Microcred and AfricInvest brings with it an integrated mix of sector-specific expertise and strong shareholder support. This will allow MicroKing to leverage the financial and technical capabilities of the new shareholders to enhance its value proposition to the formal and informal sectors and broaden its role in contributing towards greater financial inclusion in Zimbabwe.- The Source

 

 

See also:

French investor to inject $20 million into MicroKing

French investor to inject $20 million into MicroKing

 

 

 

 

Chinamasa says government will bend over backwards to save MicroKing

 

 

RBZ cancels AfrAsia Bank licence

 

 

AfrAsia Bank Zimbabwe haunted by its past

 

 

 

Zimbabwe to allow foreign banks to control local units

(85 VIEWS)

This post was last modified on March 29, 2016 3:49 pm

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

Recent Posts

Reserve Bank of Zimbabwe expects more foreign currency sellers to join the interbank market

The gazetting into law of the payment of quarterly taxes on a 50-50 basis in…

December 4, 2024

Zimbabwe 2025 citizens’ budget

Zimbabwe has today unveiled a ZiG276.4 billion budget for 2025 during which it expects the…

November 28, 2024

To go or not to go- Mnangagwa in a quandary

Zimbabwe President Emmerson Mnangagwa has repeatedly stated that he is not going to contest a…

November 25, 2024

ZiG loses steam, falls against US dollar for five consecutive days

The Zimbabwe Gold fell against the United States dollar for five consecutive days from Monday…

November 22, 2024

Indian think tank says Starlink is a wolf in sheep’s clothing

An Indian think tank has described Starlink, a satellite internet service provider which recently entered…

November 18, 2024

ZiG firms against US dollar for 10 days running but people still do not have confidence in the currency

Zimbabwe’s new currency, the Zimbabwe Gold (ZiG), firmed against the United States dollars for 10…

November 16, 2024