By KENNEDY MUPESENI -
KUKULA Capital Zambia has acquired 30 per cent shares in Betternow Financial Company Limited (BFC) at K5.8 million.
Under the new arrangement which will focus on providing loans for the Small and Medium Enterprises (SMEs), Kukula Capital will hold a 30-per cent stake in the company and will fund the expansion through a combination of debt and equity.
Speaking at the media briefing at Pamodzi Hotel in Lusaka on Monday,
BFC chief executive officer Noel Nkhoma said the partnership would help his company achieve quantum growth and position it to a preferred lender in the country.
“We are excited with this opportunity to work with a respected investment group and this will position the company to achieve needed growth of the company as well as become a preferred lender,” Mr Nkhoma said.
BFC was incorporated in 2012 and commenced operations as non-deposit taking micro-finance institution in the same year.
The company is currently present in Lusaka, with the financing the company plans to expand business national wide in the next five years.
In 2015 the micro-finance institution plans to open branches in Solwezi and Kitwe.
Speaking at the same function Kukula managing director Tue Nyboe Andersen said cash flow solutions remains an attractive and underserved market in Zambia.
“Cash flow solutions remain an attractive and underserved market in Zambia, whereas BFC has a strong platform for growth which we as Kukula are excited to be part of,” Mr Andersen said.
Meanwhile Kukula board chairman Peter Kang’ombe said his company was excited about the transaction due to the strong potential and value which Kukula would add to BFC.