It has managed only half of its R800m finance needs.

CENTURION (Reuters) - South African micro financier Blue Financial Services has raised only half of its 800 million rand financing needs for the year due to the global economic crisis, its CEO said on Wednesday.

As a result, the loan book across its 14 African operations has remained fairly constant at 1.5 billion rand, Chief Executive Dave van Niekerk told Reuters in an interview.

"We've raised $40 million. We wanted to have raised 800 million rand by now but there is a bit of a lull and delay in the market," he said.

"As funding lines come through, we are going to get a feel of the pipeline, then the loan book growth will start to come through in the second half."

Blue plans to put some money in a treasury hub in Mauritius and use it as a guarantee to tap local funding in Africa.

The company has already received 130 million rand from commercial paper programmes in Botswana and Zambia and hopes for a further 150 million rand from east Africa by end of February.

"We're looking at some local notes programmes in east Africa; Kenya, Uganda and Tanzania," van Niekerk said.

COMMENTS

 SUBSCRIBE to receive radio transcripts and morning news in your inbox daily.

View disclaimer

 

responses to this article

Struggling to raise cash Bit of a problem isn't it ? Considering that you can't trade, and if you can't trade, then your operating structure can't genrerate any revenue, and if you don't generate revenue you can't generate a profit. When are they getting access . .more to cash? and what happened to the rating that Shaun Strydom referred to in the Sunday times? No wonder the share has (and still is) fallen dramatically . .less by Poked on November 04 2009, 13:15 Find this comment inappropriate? Report it

xxx xxxx by xx on November 04 2009, 13:20 Find this comment inappropriate? Report it

comments why don't my comments show up?? by puzzled on November 04 2009, 13:21 Find this comment inappropriate? Report it

The Struggle not good when a company that lends money can't access funding. Particularly with an expensive overhead that keeps ticking up each month. Are there going to be retrenchments or have they accessed funds already? no wonder the share price is . .more falling like lead . .less by Poked on November 04 2009, 13:23 Find this comment inappropriate? Report it

Does Afdawn have the same problem? raising capital? by Frog on November 04 2009, 14:42 Find this comment inappropriate? Report it

Microfinance Does anyone even knows what Microfinance is all about? by Frikkie on November 05 2009, 09:30 Find this comment inappropriate? Report it

@Frikkie Please elaborate... by poked on November 05 2009, 13:35 Find this comment inappropriate? Report it

@Poked Microfinance is there to help people in the lower LSM level, to grant them access to credit that no other formal bank would do. To give them a chance and better opportunity of a better standard of living. by Frikkie on November 05 2009, 16:46 Find this comment inappropriate? Report it

@Frikkie Understood. However what relevance does that have on the point of the article. A good and just cause doesn't pay the monthly bills... by Poked on November 06 2009, 12:42 Find this comment inappropriate? Report it

Name
Subject
Comment

View disclaimer