Summary of Proposed Investment
Project Number
10196
Company Name
RESIDUAL DEBT SERVICES LIMITED
Date SPI Disclosed
Feb 27, 2002
Country
South Africa
Industry
Financial Markets
Projected Board Date
Mar 31, 2002
Status
Completed
Sector
Commercial Banking - General
Department
Global Industry, Financial Markets
Environmental Category
FI
Previous Events
Approved : May 9, 2002
Signed : Jun 6, 2002
Invested : Sep 20, 2002
Project Description
African Bank was established in 1975, to serve the "unbanked" sectors of the community. It has now grown to be a dominant player in the payroll based lending market, which accounts for about 1.5% of the total assets in the South African banking sector.
The proposed project will assist African Bank to: expand its operations to small contractors and taxi financing; provide micro-loans to previously disadvantaged groups for low-cost housing and education.
IFC will provide long-term finance to a second-tier bank, thus promoting confidence in the sector. The increase of the number of small businesses, low-cost housing availability, and the number of educated people, are high priorities for the South African government. Small contractors and taxi operations provide a means of livelihood in a country with high unemployment; housing is a necessity; and education is essential for economic growth.
The proposed project will assist African Bank to: expand its operations to small contractors and taxi financing; provide micro-loans to previously disadvantaged groups for low-cost housing and education.
IFC will provide long-term finance to a second-tier bank, thus promoting confidence in the sector. The increase of the number of small businesses, low-cost housing availability, and the number of educated people, are high priorities for the South African government. Small contractors and taxi operations provide a means of livelihood in a country with high unemployment; housing is a necessity; and education is essential for economic growth.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Mr. Leon Kirkinis, Managing Director
Private Bag X170, Halfway House, 1685 RSA
Phone: 27 11 256 9000; Fax: 27 11 256 9216
Private Bag X170, Halfway House, 1685 RSA
Phone: 27 11 256 9000; Fax: 27 11 256 9216