DFCU, Uganda’s third largest lender announced CDC Group’s impending departure in a market advisory this week, in which it said a minority investor was disposing if its stake. That development was confirmed today with the revelation of IFU’s entry into DFCU.

CDC was a founding member with a 60pc stake when the Ugandan lender opened shop in 1964. However that has been progressively degraded as the group embarked on a staggered exit over the last six years. CDC first reduced its shareholding in the Ugandan lender from 60pc to 15pc in 2013 before shedding another 6pc in 2017.

CDC’s Chief Executive, Nick O’Donohoe said DFCU had matured to a point where CDC could exit and deploy its resources elsewhere in the Ugandan economy.  “Our partnership with DFCU has perfectly demonstrated our credentials as a provider of patient capital. And I am delighted that in IFU, we are passing the baton to a like-minded investor that, alongside Arise, the largest existing shareholder in DFCU, will be as equally committed to DFCU’s long-term stability and success.”

DFCU, he added, was now firmly established in the Ugandan economy “so we felt it was the appropriate time to deploy our capital elsewhere.”

O’Donohoe said CDC still considers Uganda a good investment destination and would be on the lookout for opportunities to reinvest in the country the proceeds from the sale of its stake in DFCU.

DFCU Limited board chair Elly Karuhanga, said the 55 year old company had made significant contribution to the economic development and transformation of Uganda because of strong shareholders.

“With IFU as one of the shareholders, we are confident that dfcu is well on track to achieving its vision of being the preferred financial institution in Uganda. We take this opportunity to express our deep appreciation to CDC who have walked this journey with us since 1964. Their commitment and support over the last 55 years has enabled us to make real tangible progress towards the achievement of our vision. We look forward to continued collaboration with CDC in other areas in the future.”

IFU´s Chief Executive Officer, Torben Huss said IFU was pleased “to become a shareholder in DFCU as we share the ambition to expand access to financial services. We see this acquisition as a strategic step to increase our engagement in the private sector in Uganda.

Since it first invested in Uganda in 1949, CDC has over time seen its portfolio in the country grow to USD 120 million across 35 different businesses including Bujagali Hydropower.

The post Danish financier IFU snaps up CDC stake in lender DFCU appeared first on 256 Business News.

Launched on November8, dfcu says the Investment Club App, simplified the day to day management of group savings by providing a real-time view of all financial activities. The App will help with tracking contributions, managing group lending and collections; effective reporting and general administration anytime, anywhere.

The App was unveiled during a customer engagement on ‘The Investment Club of the Future’. Key areas of discussion included transparency and accountability in funds management, learning and unlearning investment options as well as digitization and its impact on strategic planning and investment clubs management.

Speaking during the unveiling of the Investment Club App, dfcu Bank’s CEO, Mathias Katamba, said: “By addressing the Investment club pain points, the App will revolutionalise the management of group savings further entrenching a savings and investments culture.

“With over 24,000 active investment clubs, this App will be central to our ongoing financial inclusion drive by encouraging personal and group savings and investments in Uganda.” he added.

According to Miranda Bageine Musoke, dfcu Bank Head Personal Banking, the group management App will encourage transparency and accountability in the management of group savings which is one of the main challenges for the clubs.

“We developed the features of our Investment Club App based on insights we got from our customers and financial reports. The App has all the tools that will help users easily and securely manage their finances,” Miranda added.

dfcu Bank has a history of promoting a savings and investment culture that dates as far back as 2007 with the introduction of the Savings and Investment Clubs proposition to foster group savings. Over 24,000 Clubs have been registered to date and the number is growing.

The App has been designed to provide full support for managing regular activities of groups such as investment clubs, SACCOs, Village Savings and Lending Associations (VSLAs), Rotating Savings and Credit Associations(ROSCAs) and companies operating as Investment clubs or SACCOs.

According to a 2018 FinScope Uganda survey, 52pc of adults (9.7 million) have mobile phones and 10pc (1.9 million) have access to the internet. The survey showed that more than half (54pc; 10 million) of Ugandan adults save or put money away with the intention to continue doing so to ensure that the amount increases over time. Most adults who save (43pc; 4.3 million), save with savings groups and 23pc of savers (2.3 million) keep money on their mobile phones.

The post Dfcu makes bid for more transparency in investment clubs with digital App appeared first on 256 Business News.