African Dawn is a niche finance provider that services a traditionally under-serviced market, the lower income bracket, both in education and finance. The company consists of five operational divisions i.e. Short-term Secured Finance, Home Improvement Finance, Financial Literacy Education, Cellphone Banking Solutions and Property Sales. These services aim to simplify finance for persons who might not have access to conventional banking services every day and educates same on how to effectively manage their funds.
African Dawn is an established company that is listed on the Alternative Exchange (AltX) of the JSE. The company has been the best share-price performer on AltX over the last 4 years and shareholders have seen major growth in their shares.

Short-term and Home Improvement Finance
African Dawn Short-term Secured Finance provides bridging finance to a wide range of clients including estate agents, bond originators, sellers and purchasers of properties.  This service effectively enables an individual or business to access funds that have already been earned but not received.  Estate agents will for example earn commission on a sale, but will have to wait up to 4 months to receive the money.  African Dawn can make these funds available within 24 hours. Similarly, bond originators would not have to wait for their commission. This service also extends to transfer duties, municipal rates and taxes etc.

Nexus Personnel Finance, (another subsidiary of African Dawn), is regulated by the National Credit Act. Nexus assists families who earn between R2 000 and R12 000 and want to make improvements to their home.  African Dawn will advance between R2 000 and R 20 000 to applicants, depending on certain criteria. These loans can be paid back over a 24 month period.

Johnny Ramasehla, head of the Home Improvement Finance Division and Deputy CEO of African Dawn:  “What makes this facility different from a regular loan is the thought that has been put into the structuring and the functionality of it.  This loan is safer in that the cash is paid directly to the retailer or supplier.  The client never has the hassle or security risk of having the funds on hand.”

The company has agents in most areas of the country; these agents are responsible for marketing and sales of the Home Improvement Finance products.  The agent submits the application to African Dawn together with the required paperwork and African Dawn carries out various credit checks on the client.

“African Dawn makes every effort to ensure that the client can afford the loan and understands the implications of undertaking a home improvement loan. The application duration can be as short as one day if all documentation is provided with the application.  This process is swift and highly effective”, says Ramasehla. 

The building materials or other home improvement materials are delivered to the client within days of approval of the loan.

Innovation through education and marketing

Through its operations, African Dawn is actively involved in uplifting historically disadvantaged individuals and communities. It raises financial awareness within these individuals and communities by providing financial education, empowering them to make informed choices and improving their lifestyle.

The National Credit Act has had far reaching effects on our country.  One of the requirements is that lenders must educate their clients about the implications and possible pitfalls of borrowing money.  African Dawn has been commissioned by the Financial Services Board to go into low literacy environments and do just this.  African Dawn educates more than 100 000 people per year.

The company is always looking to improve and expand its services to its chosen market. An example of an innovative idea from African Dawn was teaming up with certain financial institutions to market cellphone banking products.  These products enable banking for all people; the only prerequisite is to have a cellphone. Currently African Dawn is opening an estimated 1000 new cellphone banking accounts per day. 

The company also markets properties via Pam Golding Franchises in Mamelodi / Atteridgeville, Pretoria North and for selected developers and individuals.

For more information visit www.afdawn.co.za  
Home improvement loans: Nexus Personal Finance:  011 788 7270 / Call centre 0860 105028
Short Term Finance: Claudio Marques Pinheiro 083 951 7899 / 011 341 0860
African Dawn Capital Limited:   011 341 0860