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Get Bucks mulls expansion

Publishing Date : 12 March, 2018


Get Bucks Botswana, a notable player in the micro lending field registered with the Botswana Stock Exchange (BSE) is exploring ways of expanding their operations. Get Bucks, a subsidiary of Frankfurt listed Fintech, MyBucks Group which is predominantly operating in high-growth emerging African markets is considering ways of injecting more capital into expanding their services.

The microlender’s financial results for the interim period which ended December 2017 show that the company made a notable P 15. 99 million from P 6.69 million of 2016 registered in their net books. The microfinance institution realised a net profit margin of 27 percent for the year ending December 2017 and a decrease in revenue by 8 percent from 41.1 percent to 37.9 percent.

The Group Finance Director (FD), Marshal Chimedza highlighted that many factors affected the daily running of business including the loss of the late Clever Hamadi who was the financial officer.He further explained that the loss motivated the group to add more people in the Finance Department.

The results show that the loan book registered an increase of 18 percent in the half-year period from 30 June, 2017. Chimedza explained that Get Bucks has registered an impressive 75 percent increase in the loans, a process he notes is driven by the entity’s technological ways.  Get Bucks has hinted that it prides itself in the efficient and tech-driven collection methods which enable a high-quality loan book. He further cited that the impairment-to-revenue ratio decreased from 14 percent to 9 percent compared to the year before.

The Year-on-year cost-to-revenue ratio witnessed a significant improvement to 40 percent from the 57 percent realised a year earlier. Speaking at the entity’s interim results the Managing Director (MD) Botswana, Martin De Kork cited that they are seeking cash to aid in funding the loan book growth in line with the series 3 of the listed bond. The series 3 amounts to 50 million Pula with a period running until the end of the third quarter. When speaking on operational efficiency, the MD noted that they are forever looking for ways to lower fixed costs and facilitate for reduced funding as already there are more funding capacities available.

He emphasised that GetBucks’ consistent sterling performance can be attributed to their solid business fundamentals which they continue to improve at all times. He attributed this to cutting-edge technology and effective management of the performance of the various divisions within the group. Advancements and operating processes to deliver a superior client experience

With a 17 percent cost of funding margin, the MD has noted that they working on reducing the cost of funding and are constantly looking to inject substantial amounts into the business so as to step into the bond programme. De Kork has noted that the ability of the company to register total assets amounting to P 210 million is a significant indicator that shows their competitive nature.

He added that their tech savvy nature will in future see the application of artificial knowledge in business and service improvement. He noted that it is in Get Bucks Group that they exert their ability to deliver strong results, emanating from their commitment to invest in their staff and  innovative technological



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