Opportunity International, a microfinance NGO based in the US city of Chicago, has announced that it intends to sell six of its banks that are located in unspecified sub-Saharan Africa to MyBucks Group, a financial technology company in Luxembourg. It is anticipated that the transaction will take place under a “share purchase agreement”[1] that will enable Opportunity International to become a minority shareholder in MyBucks and hold at least one seat on the organization’s board of directors. It is also expected that Opportunity International will retain at least one seat on the board of each bank to be sold to MyBucks. The transaction is subject to regulatory approval from central banking authorities of the countries in which the banks operate.
In addition to recapitalizing the banks, it is expected that MyBucks will use digital and mobile banking technology to reach micro-, small and medium-sized enterprises as well as individual borrowers in remote areas. Following the transaction, Opportunity International plans to open an unspecified number of “Transformation Centers”[1], which are to offer non-financial services previously offered by the banks, such as skills training, general education, health and empowerment support.
Vicki Escarra, the global chief executive officer of Opportunity International, said that “this partnership will greatly accelerate our work to help lift more people out of poverty, transform their lives and strengthen their families and communities”[1]. She added that “myBucks will supercharge our mission by adding significant capital, resources and expertise to help drive financial inclusion of the unbanked and underbanked clients throughout Africa. It also helps us achieve our goal of creating and sustaining 20 million jobs by 2020, which will impact 100 million lives worldwide[1].
Opportunity International provides loans, savings, insurance and training to 12 million individuals in 28 countries in Africa, Asia, Europe and Latin America. MyBucks operates in 10 countries in Africa and Europe. Financial information on the organization is unavailable.
By Alíz Crowley, Research Associate
About Opportunity International
Founded in 1971, Opportunity International is a nonprofit organization that provides loans, savings, insurance and training to 12 million individuals in 28 countries in Africa, Asia, Europe and Latin America. Based in the US city of Chicago, Opportunity International also has administrative offices in Australia, Canada, Germany, Hong Kong, Singapore, Switzerland and the UK. As of 2015, the organization has provided USD 9 billion in loans with 94 percent of these loans disbursed to women. Opportunity International works toward the goal of creating 20 million jobs by 2020.
About the MyBucks
MyBucks is a financial technology company that is based in Luxembourg that offers financial products and services. As of 2015, the organization operates in Botswana, Kenya, Malawi, Namibia, Poland, South Africa, Spain, Swaziland, Zambia and Zimbabwe. MyBucks owns three brands that are marketed under the brand names of GetBucks, GetSure and GetBanked. Financial information on the organization is unavailable.
Sources and Additional Resources
[1] Opportunity International, Press Releases, MyBucks and Opportunity International Partner to Drive Financial Inclusion for 460 Million Unbanked Citizens of Africa
MicroCapital Universe Profile: MyBucks
MicroCapital Universe Profile: Opportunity International
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