Tweet

Black Investors PLC of Britain Lends $13m to Microfinance Institution (MFI) Kagisano of South Africa

Guest post by: David Satterthwaite

Article Overview: Black Investors PLC, a British investment company, has granted a ZAR 100 million (USD 13 million) long-term loan facility to Kagisano Financial Enterprises, a South African mass market credit provider. The loan will be earmarked for Kagisano’s advances book, bringing its value to over ZAR 300 million (USD 39.1 million). It comes during a period of brisk growth for the company, which has been opening about three new outlets a month as it offers new products and its customer base becomes more affluent. According to CEO Eugene van Niekerk, demand for Kagisano’s products has remained strong in spite of a high interest-rate environment. Black Investors PLC does not appear to have an Internet presence, and further information about the firm could not be ascertained.

Black Investors PLC of Britain Lends $13m to Microfinance Institution (MFI) Kagisano of South Africa

Kagisano is a publicly traded company established in 2002, primarily as a micro-lender providing medium-term loans to medium- and lower-income groups. In recent years, as many previously disadvantaged South African consumers have moved into higher economic strata, the company has been broadening its range of financial services. As of August 31, 2007, Kagisano had total assets of ZAR 182.5 million (USD 23.8 million), of which ZAR 119.5 million (USD 15.6 million) is listed as loans and advances. Calculated from financial statements, its return on assets was 1.75 percent and its debt/equity ratio was 68.6 percent. As for its credit rating, Kagisano does not report a third party performance evaluation of operations to the MIX Market, the microfinance information clearinghouse.

Related Articles
  II. How Can MicroFinance Succeed In Africa?
  Compassion International Invests USD 5 Million in Opportunity International to Develop Microfinance in Africa
  SMEs - South African SMEs and development capital
  SMEs - opportunities in Africa
  Lonrho to Acquire 51% Stake and Control of Mozambican Microfinance Bank, Socremo Banco de Microfinancas

Article Tags: 5 million, 6 million, consumers, credit rating, debt equity ratio, economic strata, financial services, financial statements, income groups, information clearinghouse, kagisano, party performance, performance evaluation, return on assets, term loans, third party



Related Forum Posts
Re: need advice - Africa is a pretty big place I think it is a question of where in Africa you would like to open a call centre. South Africa for example actually has plenty of call centres already operating, so it would very much depend on what part of Africa you are considering. MichelleJ
Re: Join an inventor's group - [quote="ideasuniversity":1cd2fidx]Thanks for this list, will check out if we have this kind of Group in South Africa. I will be glad to be part of them since I am passionate about creating ideas and implementing them.[/quote:1cd2fidx] I would also be very interested in knowing if there was such a group in South Africa, because I am sure that some of the laws etc. surrounding patents might be a bit different here. MichelleJ
Re: Newbie from Africa - Hello Biiyke Welcome to the forum. Which part of Africa are you from it is quite a big continent? I live in South Africa. MichelleJ
Re: Newbie from Africa - [quote="MichelleJ":1mn7d7fx]Hello Biiyke Welcome to the forum. Which part of Africa are you from it is quite a big continent? I live in South Africa. MichelleJ[/quote:1mn7d7fx]Hello MichelleJ,Nice to hear from you.I live in Nigeria.I am also trying to reach the South African market because I know You guys have a lot of unique stuff to show the world!
Re: In-House or Outsource? - Unfortunately, in the South African context, very few SMEs see outsourcing as an option. They believe it is too expensive, and they are paranoid that someone will "steal their ideas". I believe that the three main functions that cannot be outsourced are marketing, sales and strategy. These must be done in house I believe. If you do not have the marketing skills then get them. Hire a consultant or attend a course, but get the skills. Even if you use a consultant, you need to understand what marketing is about, as no one knows your market like you do. Marketing is made to seem difficult and complex, but everyone who really understands their markets, can easily learn to do their own marketing. In South Africa, labour legislation is extremely inflexibile, and consequently labour broking is a large industry. This is an ideal starting point for SMEs in South Africa, as it is a legally complex area, whih comes with severe penalties. I say do it! Rob Smorfitt


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

What is an Adaptive Organization

Make Small Commitments. Get Big Changes.

What Makes an Extraordinary Business Consultant?

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.