AfricInvest Financial Sector Fund and Microcred Group have agreed to acquire a 100% ownership stake in MicroKing Finance (MicroKing), a provider of microfinance products and services in Zimbabwe.

Julius Tichelaar, Senior Manager at AfricInvest, said: “AfricInvest is proud to partner with one of the leading providers of financial services on the continent and to further strengthen the AfricInvest footprint in Zimbabwe.”

“AfricInvest will provide support in the transformation to bring MicroKing back to its position of a leading provider of financial services to entrepreneurs and to make it a catalyst for further financial inclusion in the country,” he said.

The transaction is pending final regulatory approval.

Microcred, an innovative financial institution focused on financial inclusion in Africa & Asia, and AfricInvest, a pan-African private equity fund manager, are set to provide multifaceted support to MicroKing to ensure the long-term growth and competitiveness of the institution.

MicroKing is expected to undergo a comprehensive turnaround strategy to align its operations with that of the Microcred network.

Arnaud Ventura, Microcred Group’s CEO, said: “We are very excited to support MicroKing and the work carried out by its team those last few years. We wish to make a useful contribution to the development of financial inclusion in Zimbabwe and thus, support a dynamic and entrepreneurial population.”

MicroKing, which was established in 2001 and now has a wide footprint across Zimbabwe, provides financial services that are accessible and adapted to the needs of those unserved and underserved by the financial sector -particularly micro, small- and medium-sized entrepreneurs.

The MicroKing mandate will remain unchanged and the company will continue to bring significant value to clients and its various supportive stakeholders.

“We are extremely excited about this acquisition, and we strongly believe it will usher in a new era in our quest to be the leader in providing financial services and products to the informal markets in Zimbabwe. We are convinced that the latent potential that has always been in MicroKing will be unlocked to the benefit of our clients and various partners,” said Lloyd Borerwe, Acting Managing Director of MicroKing Finance.

The combination of Microcred and AfricInvest brings with it an integrated mix of sector-specific expertise and strong shareholder support.

This will allow MicroKing to leverage the financial and technical capabilities of the new shareholders to enhance its value proposition to the formal and informal sectors and broaden its role in contributing towards greater financial inclusion in Zimbabwe.