Money Markets
By Reuters
In Summary
- Actis said it saw the deal as the "first in a series of investments" in the industry.
- Privately owned Compuscan operates in six sub-Saharan countries, including South Africa, Uganda and Ethiopia.
- Actis did not give details on the size or terms of the deal or what per cent of Credit Services Holdings, its subsidiary, it would acquire.
Emerging markets private
equity firm Actis said it would invest in South African credit bureau
Compuscan, in its latest deal in the financial services industry on the
fast-growing continent.
Bankers say the lack of credit
bureaus in sub-Saharan Africa has limited many consumers' access to
loans. Without credit data on potential borrowers, banks are more
reluctant to lend because they are unable to accurately price loans.
Actis said it saw the deal as the "first in a series of investments" in the industry.
Under the deal, Actis has
established a company, Credit Services Holdings, which will acquire all
of Compuscan. Actis will then invest in Credit Services Holdings along
with management of Compuscan.
Privately owned Compuscan
operates in six sub-Saharan countries, including South Africa, Uganda
and Ethiopia, Actis said in a statement on Thursday. Only five per cent
of African adults are covered by credit bureaus, compared with 64 per
cent in developed countries, it added.
Actis did not give details on the size or terms of the deal or what per cent of Credit Services Holdings it would acquire.
Michael Jordaan, previously the
head of the retail unit of South African bank FirstRand, will be
chairman of Credit Services Holdings, it said.
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