Opportunity, a next generation microfinance organization, has signed a share purchase deal to sell six banks serving sub-Saharan Africa to Luxembourg-based fintech firm MyBucks Group.
The alliance marks the first time that a fintech company has purchased banks to drive financial inclusion.
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MyBucks Group operates in eight African countries including Botswana, Kenya, Malawi, Namibia, South Africa, Swaziland, Zambia and Zimbabwe, along with two European countries including Spain and Poland. The company holds three brands namely GetBucks, GetSure as well as GetBanked.
The deal will make Opportunity International a minority shareholder in MyBucks. The company will also retain at least one board seat at the parent level as well as one on the board of each bank following the transaction.
MyBucks will recapitalise all the banks to speed up growth and will also support banks in tapping capital markets to raise debt and capital, MyBucks global CEO Dave van Niekerk said.
The deal is subject to regulatory approval from the Central Bank in each country as well as customary closing conditions.
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By GlobalDataMyBucks plans to recapitalise the Malawi bank immediately after securing the central nod, with other banks to follow suit as required.
In addition, Opportunity International will launch Transformation Centers across Africa to offer outreach services it formerly provided through banks, such as business and financial training, Social Performance Management, education services, health counseling, agriculture training and other transformative and extension services.
Niekerk commented: "This is truly a groundbreaking partnership between an international non-governmental organization and a leading fintech company in Africa. It offers the best of both worlds by combining MyBucks products, credit expertise and technology with Opportunity International’s network, client base and expertise in using financial services to create and expand businesses that help break the cycle of poverty."
