KUKULA Capital has invested K5.8 million in Betternow Finance Company Limited (BFC), a company which focuses on working capital loans for small and medium entrepreneurs.
Kukula Capital, which is an independent venture finance and private equity firm is a joint venture between Danish and Zambian partners will hold a 30 percent stake in BFC, and will fund the expansion through a combination of debt and equity.
BFC will use the investment to grow its loan book and expand its reach in Zambia to help further economy growth.
“Cash flow solutions for SMEs remain an attractive and underserved market in Zambia, where BFC has a strong platform for growth which Kukula is part of,” Kukula Capital managing director Tue Andersen said after a signing ceremony on Monday.
Signing for BFC, chief executive Noel Nkhoma said the company has a future with the coming in of Kukula Capital’s liquidity support. It is likely to position itself as one of the leading micro-finance institutions.
“We have done so much in the last three years we have been in existence and we see ourselves growing our balance sheet four times over what we are currently sitting on,” he said.
BFC and Kukula Capital have agreed on a strategic growth plan which will see the partnership expanding in a sustainable manner.
Mr Nkhoma said BFC will be the first microfinance company to offer micro-credit to people in peri-urban areas of Lusaka to connect water and work on sanitation.
“We see ourselves not only as a micro-finance institution but also as a responsible corporate citizen.
BFC is a Zambian-owned micro-finance institution established to give better access credit for everyone living, working or engaged in entrepreneurship. Source: Daily Africa