Nimble officially partnered with the International Finance Corporation (“IFC”) in December 2019 to focus on the acquisition and resolution of distressed assets in South Africa and across sub-Saharan Africa. The IFC has taken an equity stake in our business and has provided significant capital with which to acquire distressed assets and we expect this relationship to be transformative for Nimble.
The IFC supports the development of strong distressed asset markets in emerging economies to ensure economic development and financial stability through its Distressed Asset Recovery Program (“DARP”), which has been successfully implemented in South America, Eastern Europe, Asia and the Middle East. Non-performing loan (“NPL”) transactions are globally accepted as an integral part of any well-functioning financial market as they resolve challenges faced by both credit grantors and over-indebted customers.
The DARP unit gives credit grantors the ability to sell their NPL’s while at the same time freeing up capital to invest back into their businesses. Credit rehabilitation and repair of individuals and small and medium-sized enterprises (“SME’s”) takes place where outstanding debt obligations can be resolved in a sensible and pragmatic way with the goal of preserving assets and enabling customers to ultimately be credit active and re-enter the financial system.
Customer centricity and credit rehabilitation and repair form the foundation of our approach to resolving debt obligations. Debt forgiveness is one of the key tools to practically achieve this. It seeks to resolve the outstanding credit obligations of over-indebted customers while, at the same time, achieving meaningful socio-economic benefits. In an article written on our website in May 2019, we discussed debt
forgiveness under a legislated framework as well as the large scale debt relief that is achieved through natural free market forces in the secondary market for the sale of NPL’s.
The economic crisis unfolding in South Africa and across sub-Saharan Africa as a result of the Covid-19 pandemic will undoubtedly result in increasing levels of customer indebtedness as the economy slows, new credit extension ceases, business liquidity and profitability is adversely impacted and unemployment levels rise. At the same time, credit grantors will be under pressure as rising NPL levels will
negatively impact earnings as well as capital adequacy requirements.
Our partnership with the IFC provides Nimble Group with significant organised capital to provide meaningful solutions to credit grantors to resolve income statement, balance sheet and other special situational challenges, such as the Covid-19 crisis. At the forefront of our investing philosophy is our commitment to treating customers fairly, while achieving credit rehabilitation and repair, in a manner that ensures the development of sustainable credit markets in sub-Saharan Africa.
Written by: Peter Watson, Nimble Group Head of Investing
St Agnes is a public school situated in Woodstock, Cape Town.
Nimble Group actively supports St Agnes Primary School through the Partners for Possibility programme. We dedicate resources to a variety of initiatives aimed at creating an enhanced learning and recreational space, enriched student experience, and optimized day-to-day running of school operations.
Computer room upgrade Our dedicated team of IT technicians has upgraded the school’s IT hardware and software, creating a more user-friendly and modern environment for students and teachers using the computer room daily.
Playground painting and revitalization
Our enthusiastic volunteers devoted their time to painting vibrant murals and interactive games on the walls and paved areas of the playground.
Enriched student experience
Nimble strives to continuously improve the student experience by celebrating academic excellence, sponsoring prize-giving events, and more.
Day-to-day operational support
We also contribute to the school’s operational efficiency by offering administrative support and providing access to Nimble’s HR and Finance functions.
Nimble Group has taken the initiative to establish an Early Childhood Development Centre, which began operating in January 2019 in Woodstock, Cape Town. The centre operates under the guidance of Peak child, and while accessible to the public, primarily serves as a subsidized preschool for the children of Nimble staff.
Peak Child aims to equip children with the best possible foundation for life by providing affordable, high-quality preschools in close proximity to workplaces, catering to the needs of emerging middle-class parents. Since its inception, Peak Child has focused on collaborating with socially responsible employers to support their staff beyond conventional employee benefits.
Peak Child offers comprehensive programmes for children aged 3 months to 5 years. Through partnerships with prominent educational experts and local primary schools they ensure that children transitioning from Peak Child are socially, academically, and physically prepared for admission to any of Cape Town’s leading primary schools. Peak Child currently operates three schools, including Peak Child Nimble.
Nimble has made a significant investment in this project, with plans to replicate this model close to its Johannesburg offices.
The Altius Et Latius Trust is a school education initiative aimed at providing bursaries to historically disadvantaged students, enabling their attendance at top schools in Cape Town.
The primary goal of the trust is to promote equitable access to high-quality public education, fostering lasting transformation. Their objective is to support fifty talented learners in gaining admission to high-performing schools.
Nimble Group continually makes a substantial impact on this crucial initiative by providing essential resources for additional student support, such as tutoring, funding for school events or excursions, sporting equipment and more.