by the MicroCapital Team -

SPECIAL REPORT: In 1 Day, Over 500 Meetings Between Microfinance Institutions, Funders at SAM Investors’ Fair

In SAM 2019a series of “speed-dating” sessions, 120 microfinance institutions (MFIs) and 24 investors met a total of over 500 times to find out whether they might be good matches for one another. This was during the five-day SAM conference that closed October 25 in Ouagadougou, Burkina Faso. The MFIs represented 24 countries. About half were for-profit firms, while about half were organized as cooperatives or NGOs.

Altemius Millinga, the Managing Director of Tanzania’s Yetu Microfinance Bank, tells MicroCapital that the Investors’ Fair “was the best part of SAM because

by the MicroCapital Team -

MICROCAPITAL BRIEF: Trustco of Namibia Earns Higher Rating by Extending Debt Term, Supporting Interests in Finance, Education, Real Estate, Mining

Namibia-based Trustco Group Holdings, whose members include the Institute for Open Learning (IOL), Trustco Finance, Trustco Bank, Trustco Life, Trustco Insurance and Trustco Resources, recently negotiated a term extension with its lender group. Subsequently, Mauritius-based GCR Ratings increased Trustco Group’s financial rating to

by the MicroCapital Team -

MICROCAPITAL BRIEF: Microfinance Institution La Regionale of Cameroon to Distribute Digital Social Security Payments from Government’s CNPS

The Caisse Nationale de Prévoyance Sociale (CNPS), Cameroon’s social security fund, recently authorized La Regionale d’Epargne et de Credit, a deposit-taking microfinance institution (MFI), to distribute benefits on its behalf. After conforming with

by the MicroCapital Team -

MICROCAPITAL BRIEF: Trustco of Namibia to Lend to Trainees in Institute for Open Learning (IOL) Building Trades Programs

The Institute for Open Learning (IOL), a member of Namibia’s Trustco Group, recently launched a program to train people in bricklaying, plastering, plumbing and industrial pipefitting. Trustco Bank, another member of the Trustco Group, has agreed to issue loans to IOL trainees to help them establish themselves within their new careers.

IOL serves approximately 58,000 students, generally on a part-time basis via remote instruction in the fields of education,

by the MicroCapital Team -

MICROCAPITAL BRIEF: Tugende Borrowing $6m for Boda-boda (Motorcycle Taxi) Leasing in Uganda

Tugende, a leasing company in Uganda that specializes in motorcycle taxis, recently agreed to borrow USD 6 million from undisclosed investors to expand its operations. Tugende, which translates as “Let’s Go,” has 10 branches in the country. Since its launch in 2010, it has served 20,000 clients, of whom 8,000 have paid off their “boda-bodas” completely.

The requirements to lease a boda-boda include one year of driving experience, two personal guarantors and

by the MicroCapital Team -

MICROCAPITAL BRIEF: Smart Applications of Kenya Pays OTI $2.75m for MediSmart Medical Information, Insurance Claims Management System

Verdant Capital, a Mauritius-based corporate finance firm operating across Africa, has advised On Track Innovations (OTI), an Israel-based provider of products such as cashless payment systems, on its recent sale of MediSmart, a medical information management platform focused on the East African market. Smart Applications International, a biometric technology firm based in Kenya, paid USD 2.75 million for MediSmart, which has annual revenues of approximately USD 1.5 million. According to Verdant Capital, “By enabling efficient patient identification and claims administration, MediSmart facilitates the broadest possible

by the MicroCapital Team -

MICROCAPITAL BRIEF: Takura Capital of Zimbabwe Acquires Vegetable Producer Companhia do Vanduzi of Mozambique

Zimbabwean private equity firm Takura Capital recently purchased Mozambican vegetable producer Companhia do Vanduzi for an undisclosed price via a bidding process managed by Verdant Capital, a corporate finance firm based in Mauritius. The seller is

by Aliz Crowley -

SPECIAL REPORT: The Mergers & Acquisitions Market in Africa’s Alternative Finance Sector

Headlines in the M&A market in Africa in recent years seem to have been dominated by the to-ing and fro-ing of Anglo-South African giants such as Barclays Africa/ABSA and Old Mutual. However, financial institutions in the middle market perhaps have been more active. The M&A market in the alternative finance sector (non-bank or “specialty” lenders) has seen at least 30 transactions (excluding minority stakes) completed over the last five years, and activity levels have remained robust over the last 18 months notwithstanding the slow-down of the M&A market overall.

The alternative finance sector covers a range of credit institutions that are not part of the traditional banking sector, for example, micro (enterprise) finance, consumer finance, leasing or invoice discounting, vehicle lending, housing finance, student finance, fintech, and specialist banks.

by the MicroCapital Team -

SPECIAL REPORT: Raising Funds for Non-bank Financial Institutions in Africa

The non-bank financial institution (NBFI) sector, often referred to as the alternative finance sector or the shadow banking sector, around the world is largely dependent on the institutional market for funding. By regulation, NBFIs in most markets are prohibited from gathering deposits or restricted from transactional banking services, which are critical to attract deposits. In most markets, banks themselves are reluctant to lend to NBFIs, given the potential long-term competitive threat. For example, Capitec of South Africa and Equity Bank of Kenya, which are now very much fully-fledged banks, have roots as NBFIs. In South Africa, the deepest and broadest market in Africa, NBFIs have been largely focused on borrowing from the domestic market.

This is not without risks given, for example, the significant reversal in domestic investor sentiment following the collapse of African Bank in August 2014. African Bank’s largest peer, Capitec, was less affected because

by the MicroCapital Team -

MICROCAPITAL BRIEF: Jumo Sells Microenterprise, Consumer Lender afb Ghana to Letshego

Letshego Holding Limited, which is based in Botswana and offers deposit and lending services in 10 African countries, recently paid an undisclosed price to Jumo World Limited, a financial technology firm registered in Mauritius, for all of the shares of afb Ghana, which has 60,000 customers and total assets of GHS 97 million (USD 23 million) as of December 2016. Both afb and Letshego lend for