Summary of Proposed Investment
Project Number
10677
Company Name
ABC HOLDINGS LIMITED
Date SPI Disclosed
May 4, 2001
Country
Botswana
Industry
Financial Markets
Projected Board Date
Jun 13, 2001
Status
Completed
Sector
Commercial Banking - General
Department
Global Industry, Financial Markets
Environmental Category
FI
Previous Events
Approved : Jun 19, 2001
Signed : Jun 27, 2002
Invested : Sep 9, 2002
Project Description
ABCH was formed in May 2000 following a merger between First Merchant Bank Holdings and udc Holdings. The merger put in motion the transformation of ABCH, whose major operations are in Zimbabwe into a diversified financial services group with an increased geographical reach in Southern and Eastern Africa. The project is intended to decrease ABCH’s exposure to the harsh economic conditions prevailing in Zimbabwe by widening its revenue base in neighboring African countries with more stable economic fundamentals and attractive market potential. This diversification and expansion will be accomplished through its established regional financial leasing subsidiaries, and a widening of its product line to include full wholesale banking services in the region.
IFC’s lead role in this project will help to build confidence among investors and attract funding from both private investors and bi-lateral agencies to ensure the long-term growth prospects of ABCH. The project will help fill a critical market gap by expanding and strengthening a locally-managed financial institution that will provide specialized financial services such as investment banking, asset financing and management, all critical areas for building a robust financial infrastructure and providing sustainable term funding for private sector activity. Moreover, this project will have a positive impact on the integration of financial systems in the Southern Africa region, which will in turn support increased cross-border trade and investment.
IFC’s lead role in this project will help to build confidence among investors and attract funding from both private investors and bi-lateral agencies to ensure the long-term growth prospects of ABCH. The project will help fill a critical market gap by expanding and strengthening a locally-managed financial institution that will provide specialized financial services such as investment banking, asset financing and management, all critical areas for building a robust financial infrastructure and providing sustainable term funding for private sector activity. Moreover, this project will have a positive impact on the integration of financial systems in the Southern Africa region, which will in turn support increased cross-border trade and investment.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Mr. Douglas Munatsi, Group Chief Executive Officer
PO Box 406
Gaborone, Botswana
(267) 372 999