Former GetBucks directors commit to local fintech sector
Company loan book reached over P1 bn in 8 years GetBucks grew footprint despite being digital focused Its strong CSR initiatives highly recognized
GetBucks Botswana Limited, a subsidiary of GetBucks Mauritius Limited and MyBucks ( Limited in Luxembourg) was successfully operational in Botswana as a first- of- itskind Fintech microfinance business that offered payroll and online lending products to Batswana from 2012 - 2019.
The company embraced the use of technology to greatly enhance access and ease of finance for customers who needed a helping hand through credit financing. This effectively positioned the business as the first mainstream fintech with a direct benefit to everyday people in Botswana. The business went on the successfully set up a subsidiary, GetSure, an insurance entity with a similar technological approach to expand accessibility and financial inclusion for customers. According to a statement issued out this Wednesday by former MyBucks CEO, Dave Van Nierkerk and former MyBucks Botswana CEO Martin de Kock, in a period of 8 years, the company had provided over P 1 Billion in loan values to over 50 000 customers.
Average loan values ranged between P 1200 – 13 500, a clear depiction of the customer profiles, who were working- class individuals with actual financially pressing needs. “Our customers went on to build homes, dig boreholes on their farms, provide for their
families, and do many more self- development activities,” said the former MyBucks leaders.
MyBucks, which was competing against more established micro- lenders, had at one point during its peak, employed 74 permanent staff and 110 agents across its branches. Despite being a high digitized company, the company also had branches spread across 11 centres in Botswana, namely: Ghanzi, Maun, Palapye, Molepolole, Kasane, Francistown, Gaborone, Kanye, Serowe, Letlhakane, and Selebi Phikwe, employing talented Batswana of different skills levels. “The business intentionally invested heavily in the development of the education system in Botswana. One such initiative was the adoption of the Lapologang Primary School in Selebi Phikwe to help the school develop whilst also supporting learning and sporting activities. The outcome of the relationship was growth in academic results with the school scoring a 95percent pass rate in 2017 and 2018,” said a statement.
GetBucks’ commitment to Corporate Social Investment was recognised by rating agency Micro Finanza Rating assigning a Social Rating: Grade: B+ for ‘ Moderate social performance management and client protection systems.’
In a move that was aimed at bolstering the nascent bond market in Botswana providing broader access to the market, GetBucks Botswana found it fit to issue a bond to meet all these important elements. The bond was listed on ensued on a journey to raise funds through the Botswana Stock Exchange Limited ( BSEL), one of the best performing exchanges on the continent. A P500 million bond program was launched, raising P116.8 million geared towards refinancing, restructuring, and lowering the cost of capital for existing and future financing facilities for customers. “The bond listing process was a rigorous exercise with extensive due diligence befitting of a Series 3 size bond. Prior to the bond program, the business was funded primarily through GetBucks Mauritius and MyBucks through raising expensive offshore funding which posed a high cost of capital to the Botswana Group and also led to foreign exchange risks,” said the former directors.
MyGetbucks was regulated by Non- Bank Financial Institutions Regularity Authority ( NBFIRA) hence the bond was also given the nod by the authority. In 2020, after a successful 8- year growth period for GetBucks Botswana, a buyout exercise was instituted by MHMK Group Limited incorporated in Mauritius. MHMK acquired the whole business including MyBucks and its subsidiaries including the Botswana business with a management change taking effect at the beginning of 2019. The acquisition was for the entire business including GetSure ( Pty Ltd) and the loan book. Furthermore, there was to be a management change and directorship as the business would change direction and be rebranded to FirstCred. Those close to the deal and new investors, intimated to Botswana Guardian that, after the takeover, the business started to experience headwinds and eventual insolvency in 2022 as reported in the media.
Surprisingly, FirstCred had announced a resilient Profit Before Tax of BWP 53.7 million in December 2020. “It is with great regret that GetBucks Botswana which was a fundamentally sound business has been dragged into the matter. It is to be noted that the previous directors and management of GetBucks Botswana are sound business people with extensive experience across Southern Africa’s financial services sector,” said the former directors.
Meanwhile, former directors and management have apparently vented their frustrations for being associated with failure of FirstCred, ‘ which they have no association with and had no material impact over the last 36 months. “It is a welcome development that the courts have been
involved in and hopefully the regulator to help clarify the state of the business at the time of acquisition and how it came to fail”