Acquire this licensed credit provider to gain access to its significant loan book and growing network of branches

Zambia
Financial
Client Code: BN000032439
Turnover (Forecast): $8,241,977
EBITDA (Forecast): $3,808,509

Our client is a well-established microfinance institution, providing short-term and long-term consumer loans to individuals with permanent employment, primarily in the public sector. The company has a significant footprint of branches and sales units across Zambia, underpinned by robust lending procedures and active sales and marketing.

Key Aspects
  • A highly recognizable brand, established in an industry with significant barriers to entry.
  • A growing non-deposit taking microfinance institution, licensed and supported by the Bank of Zambia.
  • Significant intellectual property includes in-depth knowledge of the African finance landscape.
  • Robust infrastructure and operations.
  • Advanced underwriting strategies and systems, with automations that tap into credit bureau data.
  • A broad geographic reach, with several branches and sales units in key areas across Zambia.
  • Multiple communication channels enable customers easy access to in-house representatives.
  • Well-entrenched with public sector employees, from the cabinet to municipalities, defense forces and civil services.
  • Deduction codes linked to government payroll systems.
  • Recurring revenue from ongoing collections.
Opportunities
  • Market diversification - the company has recently rolled out a new loan product, applicable to a significantly broader target market within Zambia.
  • Further regional expansion is planned, with a uniquely low-cost structure due to a vital partnership.
  • The loan-book could scale rapidly according to the company’s funding capacity.
  • An acquirer may elect to use the company to springboard into other African countries.
  • A licensed deposit-taking microfinance institution could leverage the company's established branches and customer base for its own loan products.
  • A Zambian-based acquirer with funding in Kwatcha would benefit from reduced exchange rate complexity.
Headquartered

The company's head office is in Zambia's capital city, Lusaka. Branches and sales units are regionally spread across the country.

Current Markets
  • The company’s target market of low-to mid-income earners represents a significant portion of the country's employed population.
  • Customers are Zambian citizens, primarily employed by the government (68%), with the remainder employed being in the private sector.
  • 59% of customers are between the ages of 26 and 40, indicating that the company could get significant customer lifetime value as the segment ages.