Blue Financial Services , the South African micro finance institution (MFI), has been slowly revolutionising the banking industry in Africa.

What began as a small lending institution in South Africa at the start of the new millennium, has rapidly increased in size, with a footprint now stretching across 13 African countries.

Following its expansion plan and a number of acquisitions, Blue has 300 branches, staffed by over 3000 employees, stretching from southern Africa into countries such as Nigeria, Kenya, Uganda and Rwanda .

What marks Blue out from the crowd is the fact that it lends to individuals that usually find it difficult to obtain credit from other financial institutions 

The group recently announced a five-year R130-million senior unsecured debt facility from Dutch development bank FMO, that will be used to fund its consumer finance book into non-Rand Common Monetary Areas (operations outside of South Africa, Lesotho, Swaziland and at Namibia)

Blue CEO Dave van Niekerk says this funding is the second facility from FMO, and underscores the company’s ability to raise finance, even in the current difficult market conditions.

“The long term funding lines from FMO will assist Blue in further diversifying its funding sources and contribute to reducing the overall cost of our borrowings,” said Niekerk.

The company has aspirations to stretch its footprint even further across Africa, and is hoping to enter a further two markets during the current year.

In spite of its concerted push into the pan-African market, Blue Financial Services remains committed to growing its South African business. This was demonstrated last year by the acquisition of Credit U for R278m.

Dave van Niekerk said Credit-U operates through a relatively expensive finance model, adding that through a lower cost of funding Blue was aiming to unlock Credit-U's true potential.

“By improving on and changing the operating model in the branches and achieving economies of scale we will double our current footprint in South Africa,” said Niekerk.

For more information about Blue Financial Services and its plans for further expansion contact the company directly:
Name: Morné Reinders
Email: morner@blue.co.za
Tel: +27 12 990 8400