Breaking News
A stake of 15 million euros from the African Development Bank for the digital transformation of financial institutions on the continent
The Board of Directors of the African Development Bank has given the green light, Tuesday, September 25, 2018, in Abidjan, a stake of 15 million euros in the FIVE funds (financial inclusion vehicle), a financial inclusion instrument set up in 2017 by the AfricInvest group.
Evolutionary fund to a capital of 200 million, FIVE aims to make equity and quasi-equity (in funding) in medium-sized banks (financial institutions called second category) and small (institutions financial third category). The goal is to help them accomplish their digital transformation and encourage them to provide loans to African SMEs, which currently suffer from a financing gap.
The African Development Bank has decided to take a stake of 15 million euros in capital FIVE funds to help the digital transformation of financial institutions in Africa and allow them to take advantage of developments and opportunities sector.
FIVE accompany the digital transformation of these banks by providing strategic advice and capital, and helping them optimize their governance and operations. The fund will also help to develop partnerships, notably with conventional insurance companies, mobile network operators, money transfer companies.
Specifically, the FIVE fund invests in equity and convertible debt securities in financial institutions that need to increase their balance and integrate technologies that allow them to expand their service offerings to the unbanked.
Among the institutions that target the FIVE funds include conventional financial institutions (commercial banks lending to SMEs, insurance companies offering cheap products) and financial technology companies (Fintech) that exploit the technology to provide digital financial services and mobile network operators.
- New R&D Tax Credit Could Leave Lots to Be Desired for Struggling UK SME’s Read more
- Leading Insurance Franchisor Reaches $1 Billion Milestone, Earns Industry Accolades Read more
- RISE Announces Winners of $1.5 Million Flood Insurance of the Future Challenge Read more
- Newgen Partners with Mambu to Streamline End-to-end Lending Processes Read more
- BayPort Credit Union Wins Two CUNA Diamond Awards for Creative Excellence in Marketing Read more