Rest of Africa growth with the IFC

Genchi Gembutsu

This Japanese phrase translates to “go and see for yourself.” It’s a fitting reminder that even though key financial services like debt recovery may appear to follow a universal playbook, regional nuances make a huge difference — particularly in developing economies.

Factors such as access to technology, local regulations, governing bodies, and cultural context all shape how financial services function in emerging markets. Africa is a prime example, as observed by the Nimble Group.

Southern Is Not South

Nimble prides itself on using technology to improve internal efficiency and enhance debtor experiences through multiple engagement channels — including online payment platforms, mobile apps, and e-forms.

This approach works well in South Africa, where digital comfort levels are high. However, in countries such as Namibia and Botswana, the situation is different. There’s less trust in digital systems, stronger preference for cash and direct deposits, and a legacy of in-person interactions that still defines consumer behaviour.

Even so, Nimble continues to operate as a leading financial services provider and debt-acquisition partner to major credit grantors across its African footprint.

International Finance Corporation (IFC) Partnership

A key development for the group was its partnership and joint venture with the International Finance Corporation (IFC). This collaboration focuses on creating bespoke debt-relief solutions throughout Africa — mainly through debt acquisition models that help consumers resolve long-standing debts through manageable repayments or settlements at a fraction of their original obligations.

This structure benefits all parties:

• Credit grantors free up capital.
• Debtors receive realistic opportunities for debt rehabilitation and relief.

However, the sale of non-performing loans (NPLs) is still relatively new in developing markets. Two main challenges exist:

• Limited pools of organised capital.
• The need to educate credit providers about how these tools can strengthen their balance sheets.

The IFC brings deep advisory expertise, extensive African experience, and international best practices from its work with the World Bank. Its influence — and available capital — are critical to building sustainable solutions for NPLs across the continent.

Looking Forward

Nimble is optimistic about the opportunities this partnership will create. As the world continues to recover from the Covid-19 crisis, the company is proud to play a constructive and sensitive role in addressing Africa’s NPL challenges through collaboration with the IFC.

Written by: Marius Smith, Nimble Group Chief Operating Officer