Knowledge

Peach Payments announces intention to expand into Kenya, Nigeria and Namibia

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Peach Payments, a South African fintech start-up recently announced their intention to expand into Kenya, Nigeria and Namibia. The company offers businesses esp SMEs a way to receive payments from customer across platforms without need for an online platform or integration. In 2016, the company launched a payments solution called “PaySafe” which has already processed over ZAR 1 Billion in transactions and will change how businesses receive payments from customers across the globe. “Our initial target for Peach Payments was online or mobile merchants wanting to monetise audiences in South Africa. Over 200 South African online merchants are using Peach... View Article

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Verdant Capital's MD speaks at the recent AfricaCom Conference

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Verdant Capital’s Managing Director, Ed Higenbottam spoke at the recent AfricaCom conference on the panel on mobile financial services, alongside Equity Bank’s John Staley (Chief Officer – Finance Innovation & Technology) and Letshego’s James Wainaina (Group Head of Customer Experience). John Staley explained Equity Bank’s strategy in entering the MVNO business as to try to break the operator dependency, which is an inevitable consequence of most mobile banking in Africa being conducted through the USSD channel. Equity Bank has introduced a film SIM technology to allow customers to switch network in order to perform banking. He explained that most telcos... View Article

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Verdant Capital successfully arranges GHS 13 million loan facility for First Allied Savings and Loans

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Verdant Capital has successfully arranged for First Allied Savings and Loans, a leading Ghanaian financial institution, a loan facility amount of GHS 13 million (approx. USD 3.2 million) from a leading international impact investor. This facility is the first tranche of a private placement debt deal of GHS 60 million (approx. USD 15 million), the balance will close early in the new year. The institution has total assets of around USD 90 million with about 63% of its loan book is represented by micro-enterprise loans and 34% by SME loans. SMEs and micro-enterprises are critical for the economic and social... View Article

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Funding raised for Trustco Bank Namibia

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Trustco Group concluded a 100% acquisition of Fides Bank Namibia Limited, one of six licensed banks in Namibia in 2014. The financial institution was renamed “Trustco Bank Namibia” following the acquisition and recapitalization. SME lending continues to be a priority of the Bank: to offer financial assistance to Namibian entrepreneurs which will boost employment and profitability of the SMEs in the country. Part of the funding raised in this financing round will be used to restart this part of the loan book. Frankfurt School of Finance and Management is providing technical assistance to the Bank. The Bank also plans to... View Article

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Verdant Capital arranges USD 3 million credit facility for Pan African Building Society

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Verdant Capital has arranged for leading Zambian non-bank financial institution, Pan African Building Society (PABS) a revolving credit facility to support its invoice discounting and supply chain financing activities. The initial facility amount is USD 3 million, with the opportunity to upsize, and the financing is supported by technical assistance. The intention is that the financing structure will provide a platform which other funders may ultimately join. PABS is a leading Zambian deposit-taking financial institution regulated by the Bank of Zambia under the Banking and Financial Services Act and the Building Society Act. The institution has a total balance sheet... View Article

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Adoption of financial technologies rapidly benefitting financial inclusion in Sub-Saharan Africa

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The adoption of mobile money and financial technologies has enhanced a rapid transition towards financial inclusion in Sub-Saharan Africa over the past few years. This has brought Sub-Saharan Africa’s population much more than just access to financial services. This has generated new and innovative services that are influential in achieving some of the key targets UN has laid under the “Sustainable Development Goals Initiative” In 2015, the UN adopted the 2030 Development Agenda titled “Transforming our World” with goals including no poverty, quality education, gender equality, affordable clean energy, decent work, and economic growth, reduced inequality. Irrational Innovations, a venture... View Article

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Verdant Capital arranges a revolving credit facility for Pan African Building Society

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Verdant Capital has arranged for leading Zambian non-bank financial institution, Pan African Building Society (PABS) a revolving credit facility to support its invoice discounting and supply chain financing activities. The initial facility amount is USD 3 million, with the opportunity to upsize, and the financing is supported by technical assistance. The intention is that the financing structure will provide a platform which other funders may ultimately join. PABS is a leading Zambian deposit-taking financial institution regulated by the Bank of Zambia under the Banking and Financial Services Act and the Building Society Act. The institution has a total balance sheet... View Article

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Trustco Finance selected as semi-finalists for European Microfinance Award

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Trustco Finance, a subsidiary company of Trustco Group Holdings Ltd submitted its application for the 7th European Microfinance Award 2016 on “Microfinance and Access to Education” in mid-2016. Trustco Finance was selected as one of the ten award semi-finalists. The 2016 award attracted a total of 30 applications from 19 countries. With the award being focused on “Microfinance and Access to Education”, it is intended to recognize the role of microfinance in enabling access to education for children and/or skill-training for youth and adults to enhance their employment and self-employment. Trustco Finance provides 100% of financing on all Institute for... View Article

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Orange launches international money transfer service, Orange Money

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Orange, one of the largest operators of mobile and internet services in Europe and Africa has announced the launch of Orange Money to allow customers in France to transact with and make money transfers to customers in Cote d’Ivoire, Mali and Senegal. “We are delighted to offer the Orange Money solution to our customers living in Metropolitan France and particularly to those with a link to Africa,” said Patrick Roussel, Orange France Consumer Sales Director. The Orange Money service was launched in Cote d’Ivoire in 2008 and now has over 18 million customers in 14 African countries and also has... View Article

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Jumia launches online payment solution

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Jumia, Nigeria’s No. 1 online retailer and Pan-African leading e-commerce announced in August 2016, the launch of Jumia Pay, a third-party payment solution aimed at providing a safer, faster and more convenient online payment solution across the 23 countries in which the company operates. “Jumia Pay has a very simple yet crucial objective: go even further in providing a safe, a secure and a convenient shopping experience to our customers, building trust along the way between us, our thousands of sellers and our millions of customers. We are very proud to be able to offer this new service to our... View Article

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Bank of Zambia launches collateral registry

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While much attention was drawn to the recent presidential elections, the Bank of Zambia (BoZ) and the Patents and Companies Registration Agency (PACRA) recently announced the launch of a collateral registry. The registry is intended to facilitate SMEs to access funding using other forms of movable property as collateral security. “The launch of collateral registry will increase access to funding, especially for SMEs, and lead to better terms for loan contracts. Currently many SMEs are excluded from the formal credit market largely because they lack assets that can serve as collateral, although they may generally have a wide array of... View Article

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RenMoney Introduces new Education Loan

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RenMoney, a leading Nigerian inclusive lender, is launching a new education loan product, specifically tailored to fund school fees payments by their customers. The education loan product will deploy funding raised by Verdant Capital, as well as RenMoney’s existing resources. RenMoney, like many unsecured lenders in Africa, is aware that a significant part of its customer base use their loans for purposes of school fees, such is the importance placed on education by parents across the continent. The tailored school fees product will go one step further: the loans will be repayable by parents but will be disbursed directly to the schools who... View Article

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Sidian Bank Lauches Car Loan based on Uber Data

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Uber’s recent arrival in Kenya has not only disrupted the traditional taxi industry but has also brought an incidental by-product which looks set to make inroads in the East African nation’s highly constrained credit market. Kenya’s consumer lending market has historically been severely limited by the lack of consumer data. Currently, only 4.4% of population have taken out a personal bank loan with most Kenyan’s facing an average interest rate of 18%. However, in this era of unprecedented connectivity, the transport company is now also helping to bridge this credit gap. Through the use of Uber driver data, Sidian Bank has... View Article

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Africa's Mobile Ecosystem contributes USD 150 billion to the Continent

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In a recent report released by GSMA Intelligence titled, “The Mobile Economy: Africa 2016”, research suggests that the mobile ecosystem is fast becoming a major economic driver throughout the African continent with its services contributing more than USD 150 billion to the African economy. According to Mats Granryd, Director General of GSMA, “The transformational impact of mobile is being felt more profoundly in Africa than anywhere else in the world; Africa’s mobile industry is at the forefront of helping to deliver the United Nations’ Sustainable Development Goals.” While Africa is the least penetrated mobile market globally, it still represents the... View Article

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First Allied Savings & Loans

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First Allied Savings & Loans, one the of the largest savings and loans institutions in Ghana has made impressive strides in terms of the implementation of its agency business model in the first year of its operation. The agency business model, branded “AlliedAgent” which is an important part of their overall financial inclusion strategy, was launched in June 2015. Each “AlliedAgent” is a kiosk in a corner shop or fuel station. So far First Allied has 150 agents; in comparison First Allied has 25 branches, so the agency model has multiplied the total number of “outlets” their customers can utilise... View Article

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FNB says SA must use its high mobile penetration to sustain financial inclusion

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One of South Africa’s leading banks, FNB said the country must use its high mobile penetration to sustain financial inclusion. FNB said the country needed to take advantage of its growing mobile penetration to protect current gains and further broaden access whilst reducing the cost of enablement. FNB Life’s Chief Executive Officer, Lee Bromfield said the country needs to ensure that the current state of the economy does not derail the progress made to date. South Africa’s commitment to broadening financial inclusion focuses on enabling citizens to transact, borrow (credit), invest and insure. Insurance, especially funeral insurance has been a... View Article

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ZAGACE raising capital for ongoing customer acquisition costs

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Zagace is a custom built app store for small medium-size enterprise packages in called zag apps. The platform offers a full suite of enterprise management products from accounting, inventory, sales, manufacturing, storage, HR at a price that is affordable to African SMEs, and accessible via android. The platform, having operated to just over a year, has a customer base from a diverse range of sectors (mainly in Kenya to date) and is in the process of expanding its footprint and product offering into other African markets and already has a customer base in the US. ZAGACE is currently raising additional... View Article

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Verdant Capital has raised c USD 10 million for Madison Finance

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Verdant Capital has raised c USD 10 million equivalent in local currency debt financing for leading Zambian micro-SME and consumer lender, Madison Finance. The transaction was successful notwithstanding the macro economic challenges facing Zambia, and demonstrates the depth and resilience of Verdant Capital’s investor franchise. European Investment Bank was the largest investor in the transaction, which was shared by a large private institution based in South Africa. The transaction represents the first internationally sourced senior debt financing raised by Madison Finance. The transaction was signed late in 2014, and closed in H1 2015 following the satisfaction of final conditions precedent.... View Article

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