This archive report was first published on 29 August 2019.
Published on August 29, 2019, Equity Group Holdings Plc is weighing whether to keep its financial-technology unit, Finserve Africa, as a separate business. The review comes after the resignation of Finserve Africa's executive director of strategic execution, Eric Karobia, who joined Airtel Africa Plc's Uganda unit.
Finserve Africa's former managing director, Jack Ngare, recently left to head Microsoft Corp's African development centre in Nairobi. The potential strategic shift follows the departure of key executives, including Karobia and Ngare, who played crucial roles in the unit's launch as an independent subsidiary less than a year ago.
Equity Group is considering running Finserve as a division, rather than as a separate business, as it looks increasingly unlikely that Finserve will meet its target of generating $22 million (Sh2.2 billion) of revenue in its first year. The lender is also reviewing other options for the unit.
Having Finserve closer to the bank may help the lender better capitalise on a venture it started in May with Safaricom Plc, Kenya's largest mobile-network operator. The partnership aims to lend as much as Sh420 million ($4.2 million) to small businesses.
