Two recent investments into Ghana and Uganda by Arise are set to significantly boost the banking sector in these countries.
A maiden investment into CalBank in Ghana earlier this year will advance the banking sector in the country. Arise acquired a 27.7 % stake in CalBank from DPI, a leading Africa-focused private equity firm with assets in excess of USD 1 billion under management.
According to Arise CEO, Deepak Malik, Arise is excited about its partnership with CalBank, which is the 3rd largest bank in Ghana and a listed company on the Ghana Stock Exchange. “The institution has a strong track record of delivering high growth and solid performance and with the support of Arise is well-positioned to deliver future growth in Ghana, one of Africa’s core emerging economies”, said Mr. Malik.
Another exciting investment for Arise was the USD 50 million bridging loan that it provided to dfcu Ltd in Uganda. dfcu Bank concluded an agreement with the Bank of Uganda earlier in the year to purchase the assets and assume the liabilities of Crane Bank Limited (CBL), which was placed in receivership. The acquisition of CBL will allow dfcu Bank to diversify its service offerings to its clients and make banking more accessible to Ugandans. Further, the integration will enhance dfcu Bank’s competitive edge against peers in the retail and Small Medium Enterprise (SME) sector.
According to dfcu Managing Director, Juma Kisaame, the acquisition gives the bank the impetus to achieve their strategic objective of building a robust retail operation with multiple delivery channels while consolidating their position as a key player in the SME market segment. It also supports their goal of promoting financial inclusion in Uganda and they welcome the Arise partnership as a contributor to building a stronger financial sector in Sub – Saharan Africa.
Arise supports the planned expansion of dfcu Bank and foresees the integration as a catalyst for creating a strong and efficient Ugandan bank. “Arise is supportive of the bank’s growth ambitions, which will enable the organisation to improve its market position and efficiencies. In addition, we believe that this transaction is a catalyst for improved returns to all stakeholders”, concluded Mr. Malik.
These two investments speak directly to the mandate of Arise, which is to collaborate with local Financial Service Providers (FSPs) in Sub – Saharan Africa to boost economic growth through strengthening the banking sector.
