FINCORP TO SHARE CAPITALISATION

 EZULWINI – FINCORP will share adequate capitalisation to government and Tibiyo TakaNgwane. This was announced by the corporation’s Chief Executive Officer (CEO) Dumisani Msibi during the joint official opening of FINCORP Headquarters Building, Public Service Pension Fund (PSPF) Hilton Hotel and the Gwamile monument. 

As the CEO was preparing for yesterday’s event, he announced to the King that he thought long and hard as to what was the one business related critical need he could present to the King. He said, “I came to the conclusion that it would be none other than adequate capitalisation of FINCORP by its two shareholders which is government (80 per cent) and Tibiyo TakaNgwane (20 per cent).”

He elaborated that this was in order to reduce external borrowing which currently came at a very high cost which was then later passed on to local small and medium enterprises (SMEs), yet the corporation found it difficult to cope with the high cost of borrowing.  Msibi said as it were, E1.2 billion portfolio invested in SMEs by the corporation was financed through external borrowings in excess of E800 million which was quite high and very costly.

Turnover

The CEO stated that from the corporation’s annual turnover of more than E220 million, they paid over E100 million towards interest to their lenders, some of which were foreign institutions.

He pointed out that some borrowings were even in foreign currency. Msibi added that during the inception of FINCORP in 1996 to 1999, it was offering loans at very low rates of prime and below to customers because the capital at the time came at no cost to the company.  He belted out a worship song titled ‘Ungenzela konke okuhle’ which when loosely translated means God performs great works for me. During the course of the event, Dube also sang ‘Ungujehova’ and ‘Ngiyakuthanda’.

This was after he was introduced by the Minister of Public Service, Christian Ntshangase. The Cabinet minister brought the over 2 000 attendees to stitches with his Zulu anecdotes and commentary.

Another artist that performed was Itallo Dlamini, who when introducing, Ntshangase said: “Uyayivuthela iphayiphi lobaba.” Loosely meaning that Itallo was great with his saxophone.

Also, Eunice Harris performed for the audience to which Ntshangase noted that the song reminded him of his youth. The song was by legendary American soul singer Gladys Knight.

Local talent, Sandziso ‘Sandz’ Matsebula graced the gathering with his latest song which features legendary singer Tshepo Tshola – Thandaza.

 

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