Press Releases

IFC Investment in MFSL to Deepen Financial Markets in Tanzania and Zambia

In Johannesburg
Houtan Bassiri
Phone:  +27 11 731 3179

In Washington:

Lotte Pang
Phone: +1 (202) 758 4290

Johannesburg December 3, 2007—IFC, a member of the World Bank Group, announced today that it will invest in Zambia’s Madison Financial Services Company Limited. MFSL will use the funds from the $7 million investment to develop and expand the products and services it offers in Tanzania and Zambia, helping develop a robust private financial and insurance sector that will contribute to sustainable economic growth in both countries.

IFC’s support will consist of an equity investment of $2 million and a $5 million loan denominated in Zambian kwacha.  This will be IFC’s first local currency loan in Zambia, and it is structured using the swap market.  By using swaps, IFC will help increase the liquidity of the market and support capital market development.  This will also enable IFC to bolster the government’s strategy of encouraging the development of kwacha financing options.

“Working with IFC will increase MFSL’s access to international knowledge, skills, and experience,” said Lawrence S. Sikutwa, Madison’s Chairman. “We look forward to a long-term partnership with IFC that will help us expand, improve operations, and offer new products and services to people who have not had access previously.”

MFSL currently provides financial and insurance services. Building on its successful business model in Zambia, the company has expanded into Tanzania and plans to expand to other African countries in the near future. IFC’s investment will strengthen MFSL’s capital base and provide it with long-term financing to support future growth.

“A robust private financial and insurance sector is crucial to the sustainable growth of any developing economy,” said Thierry Tanoh, IFC Director for Sub-Saharan Africa. “IFC is committed to supporting the expansion of MFSL to create opportunities in Tanzania, Zambia, and other countries in Africa.”

About IFC

IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC’s vision is that poor people have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through loan participations and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, visit

About Madison Financial Services Company Limited

Madison Financial Services Company Limited is a subsidiary of Zambia’s LSA Ltd and brings together all of the group’s financial services companies under one wing. These consist of Madison Life Insurance Company Ltd, Madison General Insurance Company Ltd, Madison Premier Finance Company Ltd, Capital Solutions Ltd, CFB Bureau de Change, and the newly established Madison Asset Management Company Ltd.  

Nonfinancial services companies in the group, which include Madison Health Solutions Ltd, Amalgamated Tourism Investments Ltd, Madison Investment Company Ltd, and Perfect Milling Company Ltd, will continue to report directly to LSA Ltd. For more information, visit