Equity Group Reviewing African Fintech Unit as Executives Quit
Equity Group Reviewing African Fintech Unit as Executives Quit
(Bloomberg) -- Equity Group Holdings Plc is weighing whether to keep its financial-technology unit as a separate business after a top executive quit, adding to the loss of Finserve Africa Ltd.’s head less than a month earlier, according to people familiar with the matter.
Kenya’s biggest bank by market capitalization is considering running Finserve as a division, less than a year after launching it as an independent subsidiary, the people said, asking not to be identified because the details aren’t public. The review, which may include other options, also comes as it looks increasingly unlikely that Finserve will meet a target of generating $22 million of revenue in its first year, they said.
The potential strategic shift follows the resignation of Finserve Africa’s executive director of strategic execution, Eric Karobia, who this week joined Airtel Africa Plc‘s Uganda unit, where he is director of Airtel Money, a spokeswoman for Kampala-based Airtel Uganda said on Wednesday. His departure comes after Microsoft Corp. announced Aug. 6 that former Finserve Managing Director Jack Ngare will be heading its African development center in Nairobi.
Having Finserve closer to the bank may help the lender better capitalize on a venture it started in May with the country’s largest mobile-network operator, Safaricom Plc, the people said. Equity Group expects to lend as much as 420 million shillings ($4.2 million) through the partnership by targeting small businesses.
Equity Group didn’t immediately respond to a call or emailed questions seeking comment.
To contact the reporters on this story: Bella Genga in Nairobi at bgenga2@bloomberg.net;Fred Ojambo in Kampala at fojambo@bloomberg.net
To contact the editors responsible for this story: Stefania Bianchi at sbianchi10@bloomberg.net, Vernon Wessels, David Malingha
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