|
|
Like this article? PLEASE +1 it! |  |
|
Kinnevik Invests $14m in African Microfinance Institution Bayport Financial Services
Written by: David SatterthwaiteArticle Overview: Investment AB Kinnevik, a Stockholm-based international investment firm, announced that it has invested USD 14 million in the African microfinance institution (MFI) Bayport Financial Services. The financing is provided as a combination of debt and equity.
 |
Free Download - Ugandan Government to Set up Laws for Regulating its Microfinance Sector By David Satterthwaite |
Kinnevik Invests $14m in African Microfinance Institution Bayport Financial Services
Investment AB Kinnevik, a Stockholm-based international investment firm, announced that it has invested USD 14 million in the African microfinance institution (MFI) Bayport Financial Services. The financing is provided as a combination of debt and equity.
As of June 2007, Investment AB Kinnevik held USD 3.96 billion (SEK 25.6 billion) in total assets. Shareholders’ equity and liabilities also totaled USD 3.96 billion. The Parent Company manages a portfolio focused around three areas: Major Listed Holdings, including Millicom International Cellular, Tele2 and Transcom Worldwide; Major Unlisted Holdings, including the cardboard and paper company Korsnäs; and New Ventures, which actively finds and invests in small- and mid-sized companies with considerable growth potential.
According to a Kinnevik press release, the financing of Bayport is the second major investment in the area of New Ventures for Kinnevik this year. In May, the firm invested in Gateway TV, a company which offers satellite-based pay-TV services in Sub-Saharan Africa. It is expected that the service will be available in 8 countries by the end of 2007. In total, Kinnevik has invested USD 124 million (SEK 800 million) in New Ventures, and the market value of new ventures at the end of second quarter 2007 was approximately USD 150 million (SEK 969 million).
Bayport, founded in 2002, currently has 1,000 employees and 61 branches in Zambia, Tanzania, South Africa, Ghana and Uganda. Bayport serves 150,000 clients, the majority of whom are employed but are unable to access conventional sources of credit. About 20 percent of the MFI’s clients are civil servants who live in rural villages. Bayport deploys teams that travel to villages to disperse loans to people who would otherwise be unable to access financial services.
Bayport clients use the loans for a variety of purposes. Thirty to 40 percent take out loans to pay for education. Twenty percent borrow to fund home improvements. The rest of the loans serve various functions, including funding small businesses and consolidating more expensive debt.
Bayport’s loans range in size from just USD 20 up to USD 1,500. The average loan issued is USD 250–no small amount considering that a teacher in Zambia earns just USD 200 per month. Annual interest is between 70 and 90 percent. The MFI’s repayment terms range from one to 36 months, and repayment rates are high (96.5 percent in Zambia).
No further financial information on Bayport is currently available.
IV Module I Key Principles for an African Model of Microfinance
II. How Can MicroFinance Succeed In Africa?
What is a Microfinance Institution (MFI)?
IV. Principle II: Prioritize Local Knowledge and Participatory Planning
Increasing Microfinance’s Reach with Integrated Services
|
About the Author: David Satterthwaite RSS for David's articles - Visit David's website  Click here to visit David's website   Ugandan Government to Set up Laws for Regulating its Microfinance Sector Grameen Foundation partners with local Microfinance Institutions in Rwanda to Relaunch Village Phone Initiative PAPER WRAPUP Beware of Bad Microcredit by Steve Beck and Tim Ogden Not Just Treasure in Heaven Alliance for Christians in Development ACID to Grant Micro Loans to Benefit Ugandan Schoolchildren Black Investors PLC of Britain Lends $13m to Microfinance Institution MFI Kagisano of South Africa |
Related Forum Posts
What do you do to give back?
- I'm launching new section of the site for social entrepreneurship and our first category is going to be called African Accounts. The goal with the project is to raise awareness of African entrepreneurs and showcase that entrepreneurship can be the path to achieving sustainable development. This has always been a passion of mine and I have done a number of talks around the world on this subject so I'm excited to bring it online as well.
We have recruited some of the top bloggers in the world who focus on African entrepreneurship and are preparing additional resources.
I believe that a big part of running a business is being socially responsible and giving back - even if it's donating your time to an organization or small amounts of money or products. You don't have to be mega-successful to make a difference.
What are some of the things you are doing to give back to the community around you?
Re: How will an african make money truely on the net?
- Is it possible for an African business to set up an "offshore" account in the US or England... or even Switzerland... where all monies are paid? And a trusted agent there, who gets a percentage of any money, can then take that money from paypal and wire it or mail it or whatever to an African bank?
There are lots of countries in Africa, is this a problem in all of them? Seems like an internet entrepreneur who can set up a "Paypal" like company of their own might be able to make money on this... ? Course you'd need governmental contacts...
Help me name my moms business
- I think Infinity Cleaning Services sounds better than Elite Cleaning Solutions... Why the Solutions? What is there to be solved? You simply get a rag with some Windex on it and wipe away.... plug the vacuum and Vac Away, get a mop and mop away.
Stick to Infinity Cleaning Services... ICS sounds cool...
Re: How will an african make money truely on the net?
- [quote="OmnivoreInk":koqfopnc]Is it possible for an African business to set up an "offshore" account in the US or England... or even Switzerland... where all monies are paid? And a trusted agent there, who gets a percentage of any money, can then take that money from paypal and wire it or mail it or whatever to an African bank?
There are lots of countries in Africa, is this a problem in all of them? Seems like an internet entrepreneur who can set up a "Paypal" like company of their own might be able to make money on this... ? Course you'd need governmental contacts...[/quote:koqfopnc]
Hi Topeyinka
I don't know what products you sell, but if they are digital how about selling
them through Clickbank. They will handle the sale for you and will send you
cheques on the money you have earned.
MichelleJ
Future Financial Corporation
- I've never heard of Future Financial Corporation
is this a new company?
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.
by: 
Lesson #3: “Tell ‘em quick and tell ‘em often”
Searching for the Stars: How Yang and Filo Took Their Business to New Heights
Salesperson Wimp-Out: I Need Help 
February 2012 Top 100 Leadership Experts to Follow on Twitter
Please Stop Calling it Coaching!
Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!
Live To Work Or Work To Live?
Igniting Your Unstoppable Business Destiny
Starting a Business with Bad Personal Credit
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.