Harare – GetBucks Microfinance Bank Limited (GetBucks) shareholders have approved resolutions that would allow the bank to raise up to RTGS$47 million in additional capital.
The approvals were obtained through resolutions to raise approximately RTGS$5 million via a renounceable rights offer to shareholders, and 350 million shares were placed under the control of the directors which could potentially raise up to RTG$42 million for the bank.
In a statement at an EGM in Harare today, deputy managing director, Paul Soko said demand for loans has grown consistently since 2016 as the company diversified its offering.
The funds will thus be channelled towards loan book growth in order for the bank to grow its loan book to productive sectors of the economy namely agriculture and manufacturing.
The company said the new capital will also be channelled towards acquiring a commercial banking license that requires a minimum RTGS$25 million in capital.
“Additionally, the bank requires the funds to boost its capacity to write more business in the agricultural and manufacturing sectors with its focus on SMEs and individuals,” Soko said.
In an interview with Equity Axis on the side lines of the EGM, Soko said the bank is still confident of achieving the commercial status still despite the existing macroeconomic challenges.
“We are looking to have completed all our activities by the end of the year keeping in mind that there are still regulatory approvals that need to be obtained for the whole process to be completed,” Soko said.
“I think the current economic situation is challenging for everyone, but what we see is an opportunity to emerge from the situation as an institution that is known for servicing its clients very well.”
Deliberating on the model towards achieving a commercial bank status, Soko reiterated that the bank will not be abandoning its lending to SMEs and lower income earners.
“We are going to focus on lower income earners and what we want to give them is a product that is simple and affordable, and that will help people to meet all their financial transactions in an easy and efficient manner,” Soko said.
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Raynold Mhotseka is a Journalism and Media Studies student at the University of Zimbabwe. He serves as a news writer at financial research firm, Equity Axis where he is currently on attachment.