by Amira Berrada - Africa, Regulation -

MICROCAPITAL BRIEF: BancABC Zimbabwe to Launch Microfinance, ABC Holdings Plans to Raise $50m in Capital

A subsidiary of ABC Holdings, which offers microfinance lending in Zambia and consumer lending in Botswana and Tanzania, recently obtained approval from the Reserve Bank of Zimbabwe to offer microfinance products. This subsidiary, named BancABC Zimbabwe, expects to complete the launch within the next couple of months. Plans for this service were initially announced by MicroCapital in 2010.

In addition, ABC Holdings plans to raise USD 50 million in capital for growth, underwritten by African Development Corporation, the group’s major shareholder. Of the USD 50 million, USD 15 million is to be invested in Zimbabwe and the remainder will be distributed between Botswana and Zambia.

ABC Holdings has also engaged Shelter Afrique, a Nairobi-based company that mobilizes financial and technical resources for funding housing development in Africa, to obtain additional wholesale mortgage financing. Last year, ABC Holdings borrowed USD 7 million from Shelter Afrique. The amount anticipated this year is not been divulged.

ABC Holdings operates in Botswana, Mozambique, Tanzania, Zambia and Zimbabwe and as of 2010, reported an operating profit of BWP 111 million (USD 17 million) and total assets of BWP 5.1 billion (USD 687 million).

By Amira Berrada, Research Associate

About BancABC: BancABC is a Botswana-based bank, formed through the 1997 merger of First Merchant Bank and Heritage Investment Bank. It operates in five other southern African countries and as of December 2010, has total assets of BWP 6 billion (USD 812 million). In the microfinance sphere, BancABC has 40,000 micro-borrowers in Zambia in addition to its existing commercial loans. The corporation does not report to the MIX Market, the microfinance information clearinghouse. In March 2012, BancABC received the authorization from the Central Reserve Bank of Zimbabwe to engage in microfinance products.

About ABC Holdings: ABC Holdings is the parent company of a number of sub-Saharan African banks that operate under the BancABC brand name. The BancABC banks offer financial products and services including personal, business and corporate banking, asset management, stockbroking and microfinance. Established in 1956, ABC Holding is headquartered in Botswana. The company is listed on the Botswana Stock Exchange and the Zimbabwe Stock Exchange. As of 2010 ABC Holdings reported operating profit of BWP 111 million (USD 17 million) and reported total assets of BWP 5.1 billion (USD 687 million). The company operates in Botswana, Mozambique, Tanzania, Zambia and Zimbabwe.

About Shelter Afrique: Shelter Afrique is a Nairobi-based company that was established in 1984 and offers housing finance and consulting services to developers and housing finance institutions with the aim to promote the development of residential and commercial housing in Africa. Shelter Afrique offers debt financing in form of Project Loans to developers, lines of credit to financial intermediaries that provide mortgages to the end-users and equity financing to poor people.

Sources and Resources:

[1] http://www.newsday.co.zw/article/2012-03-29-bancabc-sets-sight–on-micro…

MicroCapital.org article, April 26, 2011, “MICROCAPITAL BRIEF: ABC Holdings, BancABC to Roll out Microfinance Services in Zimbabwe” https://www.microcapital.org/microcapital-brief-abc-holdings-bancabc-to-r…

MicroCapital.org article, September 14, 2010, “MICROCAPITAL BRIEF: BancABC Chief Confident About Outlook of Zimbabwean Economy, Eyes Civil Servants as for Microfinance Clients” https://www.microcapital.org/microcapital-brief-bancabc-chief-confident-a…

MicroCapital.org article, April 13, 2010, “MICROCAPITAL BRIEF: BancABC Postpones Plans to Extend Microfinance Operations to Zimbabwe” https://www.microcapital.org/microcapital-brief-bancabc-postpones-plans-t…

MicroCapital Universe Profile for BancABC: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=ban…

MicroCapital Universe Profile for ABC Holdings: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=ABC…

MicroCapital Universe Profile for Shelter Afrique: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=She…

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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Amira joined MicroCapital while working at Export Development Canada (EDC) as a Credit Insurance Underwriter. Amira holds a Bachelor degree in International Business and Finance from Concordia University in Montreal. While completing her bachelor degree, Amira spent a semester in France and upon graduation, three months in India working with non-governmental agencies, political and spiritual groups for various socioeconomic initiatives such as the advancement of women. While travelling to different cities and rural areas in India, Amira was touched by the poverty she witnessed and was dedicated to finding a way to intertwine her business interests with her passion for development. She hopes this internship in microfinance will provide the framework to integrate an element of development into her professional career as well as positively contribute to the field of microfinance. Amira speaks English, French, and Spanish fluently and has conversational knowledge in Portuguese and Arabic. In her spare time, she enjoys reading, trying new restaurants such as molecular gastronomy, restaurants made out of ice and Nicaraguan meals wrapped in banana leaves. Most of all, she loves to travel with loved ones.