African Century secures $5m credit

0
1262

African Century has secured a credit line of $5 million from FMO (Netherlands Development Finance Company) for on lending to agricultural and small and medium enterprises (SMEs).

BY VICTORIA MTOMBA

African Century managing director Stanley Matiza said the credit line had a four-year tenure.

“We secured a credit line of $5 million. The team from the Dutch development bank is expected to be in the country this week to sign papers with African Century,” he said.

“We will lend the money to SME’s to acquire equipment and machinery such as irrigation pumps, tractors, agricultural implements such as ploughs, planters, boom sprayers, disc harrows, haulage trucks, generators and combine harvesters.”

The firm was set up in 2010 as a leasing company in the local market after the country adopted the multi-currency. Africa Century now has a lease book of $25 million with over 800 leases granted since incorporation.

The business has raised several third-party credit lines from Afreximbank, FMO and Soros Economic Development Fund and others.

The company has grown to be a lease finance company for vehicles and machinery with clients from both the private and public sectors.

Shareholders of African Century Limited are African Century Leasing Limited Mauritius and the Management Staff Share Scheme. The shareholders also have shares in NMB Bank.

African Century was given a licence by the Central Bank to be a deposit-taking microfinance institution.

Microfinance institutions provide financial services to local individuals and groups.

They are aimed at fostering economic activity among low-income earners, for whom access to official banking services is difficult.

FMO can provide funds to individuals as well as syndicated loans, equity, mezzanine, guarantees and capital markets.