×
NewsDay

AMH is an independent media house free from political ties or outside influence. We have four newspapers: The Zimbabwe Independent, a business weekly published every Friday, The Standard, a weekly published every Sunday, and Southern and NewsDay, our daily newspapers. Each has an online edition.

MikroKing suitors head for Zim

Business
European suitors of MicroKing will be in the country this week to tie loose ends on their takeover of the micro-finance concern.

European suitors of MicroKing will be in the country this week to tie loose ends on their takeover of the micro-finance concern.

BY VICTORIA MTOMBA

Last year, the central bank said Microcred and AfricInvest have shown interest in MicroKing, a unit of AfrAsia Bank Zimbabwe Limited (ABZL).

An executive privy to the developments told NewsDay yesterday that the suitors would be in town this week and were doing a due diligence exercise on the micro-finance institution.

In his 2016 National Budget, Finance minister Patrick Chinamasa said a number of policies to mobilise Diaspora remittances as an important source of liquidity in the economy have been instituted.
Finance minister Patrick Chinamasa

“We will be able to know when we have a meeting with them this week when they will start work. All is under control the new investors are doing the final touches,” the official said.

The investors are set to invest $25 million in MicroKing and will wholly own the company.

ABZL surrendered its banking licence last year after failing to meet the $25 million minimum capital requirements.

The British Department for International Development (DFID) had $800 000 investments in MicroKing.

Since 2009 MicroKing channelled $200 million to the small and medium enterprise sector.

The micro-finance sector recorded an increase in total loans to $173,3 million September 2015 from $162,2 million as at 30 June 2015.

The micro-finance sector is dominated by 20 players that contributed 89,1% of the $154,5 million total loans advanced by the sector.

Finance minister Patrick Chinamasa last year said government would bend the rules to save MicroKing from collapse as the micro-finance company was assisting the informal sector.

DFID permanent secretary Mark Lowcock also said last year that MicroKing was transparent in its dealings and the UK government’s arm for ending poverty was willing to continue the relationship.

He said the arm had a successful engagement with DFID and have been servicing resources that were given to them.