“As an ethical player in the micro-finance industry, Blue firmly believes that micro-finance is an answer to empower the under-banked and underserved,” says Dave van Niekerk, Chief Executive Officer at Blue.
It is indeed in Africa where the need for development finance is the greatest, and Blue Financial Services Limited (Blue or the Group) already realised this in 2001 when they established themselves to become a prominent pan-African micro-financier, offering financial solutions to people who have previously not had access to credit or formal financial solutions.
“History has shown that handouts are not productive and do not produce wealth. Therefore, government finance, coupled with entrepreneurial driven micro-finance banking is important for ensuring sustainable poverty alleviation and economic empowerment. Most importantly, Blue does not see Africa as a charity case, not at all, and for this reason we lend a hand through responsible and professional financial services,” says Van Niekerk.
An example of Africa’s concerted effort to attract foreign direct investment, create work opportunities and become less dependent on international grants is found in World Bank president Paul Zoellik’s perspective on Rwanda, “…on issue after issue, this is a country on the move. It’s a country where you feel that for every dollar you spend, or every hour you put in, you get a tremendous return.”
Since Blue’s beginnings, the Group has grown phenomenally and is now represented in 14 African countries, operating through more than 300 branches and employing over 3 000 people. In October 2009, Blue will also have been listed for three years on the AltX of the JSE Limited.
“We are proud that we viewed Africa in its entirety as the opportunity right from the start, and built our organisation on this vision. Today, we make financial solutions accessible to all through an extensive branch network and, as a result, empower the financially emerging market in Africa. Underpinning this are our transparent lending practices and the strict corporate governance adherence policies that form the Group’s foundation to carry out business in an accountable manner in each country of operation,” says Van Niekerk.
The successful expansion of Blue plays a major role in terms of Blue’s growth strategy on the continent, and in the Group’s preparation for the future.
“Although growth, progress and development within the Group, and the countries in which we operate, are synonymous with Blue, the global economic crisis and the effect it had on the African economy cannot be ignored. African economies are still lagging behind the rest of the globe’s recovery from the financial crises,” says van Niekerk.
The Group indicated that 72 percent of Africa’s top economies experienced a decline in nominal gross domestic product (GDP) growth in 2009.
As a collective, Africa’s GDP measured 2.5% of total world GDP in 2008, and is estimated at 2.3% of world GDP in 2009. To put this in perspective, the World Bank’s Gross National Income survey (2006) rated Africa as the tenth largest economy in the World, ahead of some of the BRIC constituents: Russia, India and Brazil.
Van Niekerk says that Blue views the lag effect as temporary and that a number of currencies have shown appreciation on the back of resource demand and increased developmental finance.
“With adequate funding lines and capital, as well as an extensive branch and kiosk network, we have the ability to make financial services available to the potentially productive African population. Although banks are cutting back on their lines of credit, and whilst smaller micro-financiers will be worst affected by the drying up of the availability of funds, micro-financiers who have diversified their operations and funding base, will weather this storm best.”
The support Blue receives in the form of investment from global private equity firms, international development funders and frontier market funds; as well as from banks – both international and African based – allows Blue to streamline operations and offer clients a lower interest rate.
Blue’s shareholders include the International Finance Corporation (IFC), Emerging Capital Partners (ECP), Stanlib and Absa Bank. Debt funders include the Dutch Development Bank (FMO), the Overseas Private Investment Corporation (OPIC), and Standard Chartered and the OPEC Fund for International development (OFID).”
“We feel that the prospects for continued growth on the continent remain strong. There are positive signs that liquidity in the international markets is improving, and Blue remains well positioned to capitalise on the scalability of our business. We built Blue on courage, innovation and dynamism. I do not believe you can ever separate risk from opportunity as they are the two basics that explode into success. You can, however, diversify your risk; and in this way lead an organisation to embrace change and actively pursue possibilities,” says Van Niekerk.
For more information on the services offered by Blue:
Contact Morné Reinders
Email: morner@blue.co.za
www.blue.co.za
