GLOBAL micro-finance giant Microcred has taken over the ownership of Microking Private Limited, a defunct unit of the AfrAsia Kingdom Bank, which ceased operations in 2015 after the central bank cancelled its licence.
The move is set to revive the fortunes of micro-finance institution by broadening and adapting its services and taking business to the next level.
“What was Microking Finance (Pvt) Limited is now Microcred Zimbabwe (Pvt) Limited. We have reinvented our self and grown better to serve you at the highest international level whilst remaining highly accessible and approachable. One thing that we won’t change, but rather amplify, is our belief in the people that we serve and their dreams,” said Microcred Zimbabwe.
Microcred Group jointly owns the new operation with AfricInvest Financial Sector Fund. In terms of the deal, Microcred will own 70 percent of the local business while AfricInvest owns the remainder.
The two firms reportedly plan to pump in more than $20 million into the Zimbabwean micro-lender in the next two years as well as upgrade it into a microfinance bank.
MicroCred has operations in China and in six other African countries, namely Cote d’Ivoire, Madagascar, Mali, Nigeria, Senegal and Tunisia. —