Knowledge

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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Is technology the key disruptor of financial services across Africa?

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Originally published in Deal Makers Africa, Vol 9: No 2, 2016 In many markets on the African continent, significant growth in the number and breadth of financial services providers can be seen. This is in terms of the number of non-bank financial services providers who have reached critical mass in terms of size and scale, as well as the number of “non-traditional banks” (ie non-bank financial services providers) who have climbed the regulatory hierarchy and become deposit-taking banks (for example, Trustco in Namibia, and before them Capitec in South Africa). A number of critical factors have contributed to this trend... 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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Has the gloss come off the Africa rising narrative?

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Originally published in Deal Makers Africa, Vol 8: No 4 The historic combination of favourable macro-economic conditions for Africa began to reverse in 2013, with a weakening of most commodity prices as well as the taper tantrum in the global financial markets. Over the course of last year the decline in commodity prices has continued and even accelerated, and in December, the US Federal Reserve finally announced its first increase in interest rates for nearly a decade. Two to three years of falling commodity prices has now left governments grappling with meaningful current account and fiscal deficits. Previous economic darlings,... 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 awarded the accolade of Best Corporate Finance Firm in South Africa

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Verdant Capital has completed four cross-boarder transactions in 2015. In recognition of the strength of its cross border franchise, Verdant Capital was awarded the accolade of Best Corporate Finance Firm in South Africa, 2015 by Acquisition International. Following its transaction in agri-chemicals in South Africa last quarter, the sale of Greenbelt Fertilisers is Verdant Capital’s second transaction in the agri / fertilisers sector this year alone. Over the last two years Verdant Capital is perhaps the most active firm in Africa in this sector.

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Verdant Capital opens Ghana Office

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Verdant Capital has opened an office in Accra, Ghana, and now has a total of three offices (Johannesburg, Ebene, Accra). The Accra office will be led by Kwabena Appenteng, Vice President. Kwabena has extensive corporate, entrepreneurial and corporate finance experience in Ghana and beyond, including as Senior Private Sector Officer at US AID. Save Save

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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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