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A GLOBAL innovative financial institution, Microcred Group and its international partners have acquired MicroKing Finance, a microfinance unit for the now defunct AfrAsia Kingdom Bank.
In a statement, the group announced yesterday that together with AfricInvest Financial Sector Fund had acquired 100 percent ownership of MicroKing.
It said closing of the transaction was now subject to obtaining final regulatory approval.
“MicroKing is set to be acquired by an international investment consortium (Microcred and AfricInvest). Microcred, together with its international partners, will bring significant resources to MicroKing both in capital and expertise to become a regional leader in the provision of financial solutions to both the formal and informal sectors,” said the group.
Microcred’s operations span across eight countries in Africa and Asia, and AfricInvest is one of the leading Africa PE firms with close to $1 billion of assets under management.
“The acquisition is set to usher in an integrated mix of sector-specific expertise and strong shareholder support. This will allow MicroKing leverage the financial and technical capabilities of the new shareholders to enhance its value proposition to the formal and informal sectors as well as broaden its role in contributing towards greater financial inclusion in Zimbabwe.”
“We’re very excited to add MicroKing to our network and we’ve faith in the talent of MicroKing’s staff to support the ambitious growth and development of Microcred in Zimbabwe,” said the group.
AfricInvest senior manager Julius Tichelaar 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.”
Last year, six companies — local and regional players — submitted their bids to acquire MicroKing.
Since 2009, MicroKing channelled more than $200 million to SMEs.
derick.khumalo