Vision

Select’s vision is to focus on servicing the un-banked or entry level retail credit market which is often overlooked by the formal banking sector as the clients are deemed too small or too risky. Select provides products, includes housing loans, home improvement credit for housing related projects e.g. Water and Solar, education loans, and retail consumer credit and insurance.

Select Africa’s typical client is employed, yet unable to easily access personal or housing finance through traditional banking channels due to banks aversion to perceived higher risk clients and the inability to mortgage (or attach) properties as security across many countries in Africa. The Company’s primary client base tends strongly towards public sector employees, typically being the largest and most stable formally employee base in markets across Africa. Loan repayments are deducted via payroll (at source), providing for more consistent collections.

HISTORY/EVOLUTION OF SELECT

African Alliance, the majority shareholder of the Select Africa Group, commenced its Unit Trust Business in Eswatini some 20 years ago. This enabled small investors to buy and invest in units of African Alliance’s investment fund. After a while, it became apparent that clients inexplicably were regularly withdrawing funds from the long term investment scheme. Subsequent research indicated that investors were withdrawing funds to fund their short – term borrowing needs, particularly for household expenditure. This gave rise to the strategic decision to start offering short term consumer loans. Thus, the first branch of our microfinance business, Select Africa, was started in 1999.

Within 4 years, our loan book size had swelled to SZL60m in Eswatini. Over time, we expanded operations to other countries. The Lesotho business opened its doors in 2007, the Kenyan business started in late 2008 and the Malawi office opened in 2009. In 2008, the decision was made to centralize all administration and processing functions in Mauritius in a single Business Process Outsourcing hub.

An independent research study conducted in Eswatini in 2007 showed that 38% of Select’s borrowers actually used their micro-loans for housing purposes and not solely for consumption purpose. This prompted Select to start investigating the housing microfinance market as a likely source of business growth.

Following the study, Select’s focus shifted to providing loans for housing requirements. In 2012 Select Malawi entered into a partnership with Habitat for Humanity to provide Construction Technical Assistance (CTA) to Select’s clients wishing to build houses. Thus started the evolution of Select’s housing focus.

CODE OF CONDUCT

This code of conduct has been formulated based on the five core values of the company as well as recognizing that our clients are the very reason for the existence of our business and its future prosperity:

INTEGRITY

As your responsible partner in finance, Select staff will always act honestly, fairly and reasonably in all our business activities.

EFFICIENCY

Members of staff shall perform their duties to the best of their abilities using the minimum resources and time to the maximum benefit of all our stakeholders including customers, shareholders and staff.

TRANSPARENCY

Select members of staff shall provide complete and accurate information relating to the various financial services offered to its clients to enable them make informed and rational decisions. Members of staff shall;

Diligently assist clients in accurately determining the clients ability to enter into any loan commitments,
Shall disclose to clients all the costs, terms and conditions of financial services offered in a manner understood by the client.