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.”
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 www.ifc.org.
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 www.madisonzambia.com.