AFRICAN Century (ACL) says its loan book grew 80 percent during the year ended December 31, 2023 mainly driven by the increase in funding which was attributed to the leasing bond with subscriptions amounting to equivalent of $17,4 billion.
The lending market was however subdued during the year owing to lack of liquidity attributed to government tightening of money supply to manage inflation. Nonetheless, the microfinance institution’s net interest margin increased to 83 percent from 76 percent previous year due to the increase in the loan book.
Net interest income increased by 45,8 percent to $6,4 billion during the period. ACL chairman Victor Gapare in a statement accompanying full year results said the institution was leveraging on significant foreign currency inflows into the country to sustain its lending business.