SECP grants license to SAFCO microfinance company (pvt) limited
Securities & Exchange Commission of Pakistan (SECP) has issued Microfinance License to a newly established “Non-Banking Microfinance Company” namely SAFCO Microfinance Company (Private) Limited (“SMC”).
As per the details, SMC is a wholly owned subsidiary of SAFCO Support Foundation (“SSF”), one of the leading microfinance institutions engaged in providing microfinance services to the low-income marginalized segment of the society.
This transformation is the first move of its kind by the management and board of SSF which is the result of SECP’s concerted efforts to encourage the companies engaged in microfinance business under section 42 of the Companies Act, 2017, operating as “not for profit” structure to transform into “for profit” structure under linear regulatory structure facilitating the entities to take potential benefits of large capital base, expand financial services, improve efficiency through improved governance and economy of scales.
After license, SMCL will work as an entity for benefit of its shareholders along with its clients, it will be able to pay dividends to its shareholders, opening multiple avenues for new local and foreign investments and leverage the competitive interest rates from lenders to expand its operating and financial outreach.
SAFCO has been operating since 2009 having a footprint across the whole of Sindh province with a network of 57 branches providing microfinance services to more than 700,000 unbanked and low-income entrepreneurs, out of the 59 percent are women entrepreneurs and 80 percent of them are rural smallholder farmers.
The subsidiary has been formed with the vision to seek multiple avenues of like-minded and well-reputed mission-driven equity investors from both local and international markets. This will allow SMCL to further strengthen its balance sheet and leverage it for massive growth, doubling the outreach in the next five years which reinforces the SAFCO group’s National Financial Inclusion Strategy and Sustainable Development goals of improving the lives of unbanked and low-income businesses in Pakistan.
courtesy by :https://profit.pakistantoday.com.pk/2022/07/16/secp-grants-license-to-safco-microfinance-company-pvt-limited/