Last week we could share the news that Micro Africa Ltd has decided to exit as a MYC4 provider. The decision comes as a result of Micro Africa being acquired 100% by Letshego Holdings who is able to finance Micro Africa’s lending activities going forward.
We have received a letter to the MYC4 investors from Tim Carson, Micro Africa’s CEO. He writes:
To all MyC4 Investors
It is with great regret that I write to advise that Micro Africa will be ending its long association with MyC4. Micro Africa has been acquired by Letshego Holdings of Botswana, a financial services company listed on the Botswana Stock Exchange and active in 12 African countries. Letshego has advised that it will take care of all of Micro Africa’s future funding requirements. As a consequence, Micro Africa will not post any new loans on Myc4.
Over the past 5 years, the MyC4 investment community has been a vital cog in enabling Micro Africa to transform the lives of its entrepreneurial clients. Since 2008, MyC4 investors have provided EUR2.8million of crucial funding to almost 2500 clients of Micro Africa in Kenya, Uganda & Rwanda.
The MyC4 funding has been extremely beneficial to our clients enabling them to expand and develop their business activities.
The MyC4 funding has also been a key part of the development of Micro Africa. In 2008, when we first began our association with MyC4, Micro Africa had a portfolio of $4million and approximately 4200 clients. Today Micro Africa has a loan portfolio in excess of $21million and over 45,000 clients.
I would like to thank you all for your support of Micro Africa and our clients. I urge you to continue your support through MyC4 of the thousands of small businesses in Africa that would find it difficult to fund their activities without the support of MyC4.
Many thanks again
CEO -Micro Africa Ltd
Micro Africa is currently the largest provider on the MYC4 platform with 1469 active loans and an outstanding portfolio of approximately €630,000. The portfolio is held in three countries, namely Kenya (60 %), Uganda (25 %), and Rwanda (15 %). As a result of the exit, no new loans will be uploaded to the MYC4 platform for funding, and the active loans will be repaying in accordance with their respective repayment schedules. Micro Africa has reaffirmed its 100 % guarantee to cover on behalf of its clients in case of loan defaults.
Tim’s letter to MYC4 investors expresses in many ways the direction that MYC4 has actively been taking for the last 12-18 months; to be an instrumental financing partner for Tier 2 and Tier 3 microfinance institutions (MFIs) in East Africa that are looking to grow and build institutional capacity.
Our CEO, Mads Kjaer says: ‘We would like to thank Micro Africa and its management for a constructive and professional partnership over the years and we are sure that we will meet again. On one side it is sad to see a 5-year partnership come to an end, yet it is wonderful to part on such good terms and great to know that MYC4 has been part of Micro Africa’s journey from being a small MFI to now being the largest credit only MFI in Kenya’.