Bayport secures $250m OPIC loan for business start-ups in Africa

By The guardian reporter

  The long-term loan will support the group's financial lending and growth agenda across its operations in Africa

Bayport Tanzania Chief Executive Officer John Mbaga

Emerging  market financial services group, Bayport Management Limited (BML), has announced the closing of a US$250m senior debt facility with the US government development finance entity, Overseas Private Investment Corporation (OPIC), meant for loan issuances in Africa.

 

 

The long-term loan will support the group's financial lending and growth agenda across its operations in Africa, Tanzania in particular.

 

Announcing the development recently, Bayport Tanzania Chief Executive Officer John Mbaga said the group regards OPIC funding as a way to help more people start businesses, educate themselves and their children and invest in futures.

 

"To us, the funding signifies an endorsement of both Bayport's strategy and the US’ commitment to empowering developing countries to design their own solutions and growth trajectories," Mbaga added.

 

For her part, Elizabeth Littlefield, president and CEO of OPIC pointed out that Africa and Latin America were the key regions for global economic growth.

 

"Bayport has demonstrated results across the developing world and earned the first Smart Campaign accreditation in Africa, making it an ideal partner for OPIC," said Littlefield.

 

She further noted that by bringing in inclusive finance to wage-earners who would otherwise lack access to reliable credit, the Bayport model propels emerging economies forward.

 

“With typical loan sizes in Bayport’s portfolio averaging less than US$5,000, OPIC's US$250 million support will have an outsized development impact, reaching tens of thousands of borrowers across Africa and Latin America," she said.

 

However, under the terms of agreement, OPIC will provide financing in the form of long term debt that will enable BML to fund its strategic growth aspirations in Africa and Latin America, which include organic expansion in existing countries and the development of a broader range of financial solutions in those markets.

 

All of this activity will be underpinned by a custom-built new technology platform that is being developed in-house.

 

Bayport delivers on its developmental objectives by making a broad spectrum of financial services accessible to people generally excluded from traditional banking and other life enhancing financial products. Its Tanzanian operation, for example, is innovating through product development initiatives in the purpose loans arena.

 

Bayport's ‘Chagua Chochote’ product offering in Tanzania enables customers to acquire income-generating items such as motor bikes and three-wheeled motorcycle pickups.

 

Customers also have access to other financial solution products such as insurance and mortgage-type loans that allow them to own a surveyed plot of land from the Vikuruti Development.