Frequently Asked Questions
1. How is Select currently funded?
Until 2006 the Swaziland operation was funded by debt and equity from African Alliance, the main shareholder in the company. In January 2007, Select Africa registered a Medium Term Note programmes on the Swaziland Stock Exchange. Since then, more than USD 45 million has been raised under the programme, which has been renewed three times. Select Kenya and Select Malawi are funded through the shareholder equity and overdraft facilities from local banks. In 2011, Select Malawi secured a funding facility from the Soros Economic Development Fund.
2. How are prospective new countries chosen?
All prospective new countries are assessed based on a scoring system. Each country is given a score based on various factors, such as the availability of a deduction code system, existencce of a regulated microfinance environment, exchange control legislation, macro-economic climate, political stability, size of the civil service, etc. The schedule is updated and monitored on a continuos basis to ensure that Select is well placed to enter prospective markets as and when the opportunity presents itself.
A further consideration is the availability of funding. Select will only enter a new country if it has sufficient funding, either at a group or in-country level, to start-up and grow the business to a sustainable level.
3. Select’s future prospects and funding requirements?
Select is experiencing rapid growth in the countries which we currently operate in, and we are planning to expand our operations to more countries in Sub-Saharan Africa over the next five years. To fund this growth, Select is looking to collaborate with internations institutins, either at a country or group level, through equity, debt, guarantees or a combination of these.