Africinvest invests in MicroKing Finance (Private) Ltd

23 Mar 2016

Microcred Group (Microcred) and AfricInvest Financial Sector Fund (AfricInvest) are pleased to announce
they have reached an agreement to acquire a 100% ownership stake in MicroKing Finance (Private)
Limited (MicroKing), a leading provider of microfinance products and services in Zimbabwe. The
transaction is pending final regulatory approval.

Microcred, a leading innovative financial institution focused on financial inclusion in Africa & Asia, and
AfricInvest, a pan-African private equity fund manager, are set to provide multifaceted support to
MicroKing to ensure the long-term growth and competiveness of the institution. MicroKing is expected
to undergo a comprehensive turnaround strategy to align its operations with that of the Microcred
network.

“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 Microcred Group’s Chief Executive Officer,
Arnaud Ventura.

MicroKing, which was established in 2001 and now has a wide footprint across Zimbabwe, provides
financial services that are accessible and adapted to the needs of those unserved and underserved by
the financial sector -particularly micro, small- and medium-sized entrepreneurs. The MicroKing mandate
will remain unchanged and the company will continue to bring significant value to clients and its various
supportive stakeholders.

“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” stated Lloyd Borerwe, Acting Managing Director of
MicroKing Finance (Pvt) Ltd.

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.

Commenting on this transaction, 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.”

 

For more information, please see here.

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