AfriCap Microcredit Fund Makes Equity Microfinance Investment Worth Over $600,000 in Micro-lender Socremo in Mozambique

Micro-lender Socremo, Mozambique, has sold shares worth $620,000 to AfriCap Microfinance Fund (AfriCap). Socremo, established in 1998, is one of the largest microfinance providers in Mozambique with a gross loan portfolio of $4.2 million, total assets of $5.4 million, close to 6,000 borrowers, and 420 active savers, as reported in December, 2004. Socremo also reported total equity at $1.9 million , return on assets (ROA) as 1.8%, return on equity (ROE) as 5.0%, a debt to equity ratio of 185%, and a 10% profit margin at the end of 2004.

AfriCap, which was incorporated in Mauritius in 2001, with an operational base in Dakar, Senegal, is a $15 million equity investment fund dedicated to the microfinance industry in Africa. The fund is designed to provide venture capital and active governance to a select number of emerging African microfinance institutions (MFIs) that are committed to commercial viability. As of July 2004, AfriCap reported total fund assets of $13.3 million and funds allocated to microfinance investments of $3.2 million. Additional Resources1) “AfriCap Microfinance Fund”

2) MIX Market: “AfriCap.”