Amarjeet's Great Links: Jan 17, 2012

Kingdom Financial Holdings of entrepreneurial growth continues, this article presents a case study. Entrepreneur who is a banks financial crisis that began in 2003, survivors of Zimbabwe. In 1994 the bank was established by four entrepreneurial young bankers. It has grown considerably over the years. In this case the origin, growth and expansion of the Bank. The lessons or principles that can be derived from this case that might apply to a summary provided by the entrepreneurs.

An entrepreneur created by: Nigel Chanakira

Harare suburb of Highfield Nigel Chanakira an entrepreneurial family was raised. His father and uncle, and later in retail shops, public transport company operating in diversified modern expressways. Mother's Family Business Nigel's father later exited. It is one of the shops and buy it expanded. During the school holidays as a young Nigel first work shop was born. His parents, especially his mother insisted that he first acquired an education.

On completion of high school, Nigel for dental or medical school, which was his first passion failed to enter. In fact, the only accredited degree program in Bachelor of Arts in Zimbabwe, the University may be eligible for. However, he has a Bachelor in Economics degree program is to "change his ways - sweet talk." He worked hard academically, their strongly competitive character that was developed to exploit it during game days. Nigel strictly applied and the best grade for their academic pursuits, which the Reserve Bank of Zimbabwe (RBZ) for employment as an economist, passed his study door opened.

During his stint with the Reserve Bank, the economic concept of wealth creation, he showed that the banking sector banking and financial markets understand what was happening, so he decided. While in the RBZ at the beginning of banking in preparation for a Master's degree in financial economics and financial markets for more. Dr at the Reserve Bank under Moyana, the research team with the Economic Structural Adjustment Program was an integral part of financial services liberalization in the policy framework. Proper place at the right time, it became aware of the opportunities that were opening. Identify the most profitable banking institution to Nigel for his work in preparation for future exploitation. Bard Discount House under the leadership of Charles Gurney worked for five years.

A short while later a poet, and the Gibson Nick Vingirayi Muringai Intermarket Discount House in the form of two black officers to the left. Young Nigel was inspired by their departure. If a banking institution established in two of their own, so they can be given time. This departure also creates an opportunity to rise to fill the vacancy. This is an ambitious banker managerial experience in the complex. Then he was a poet, where he had portfolio management services, client relations and communication practices within the Department to obtain experience in the complex became a director. While there, he Franky Kufa, a young trader who was making waves, which were later found to be the key co-entrepreneur.

His father, despite his professional business, Barclays Bank in connection Nigel Program "to start your own business," entrance. However, what really made the impact on young entrepreneur Empretec entrepreneur training program (May 1994) was that he was Mrs. Tsitsi Masiyiwa. This course showed that they had the necessary entrepreneurial competences.

Nigel tried to buy out a poet in Anglo - American from the management of Charles Gurney themselves. This failed, and more and more frustrated and ambitious entrepreneur Nick Mother Vingirai Intermarket the verge of a National Discount House on Mother's Mhlanga was never considered for employment opportunities - as a shareholder to join in the hope that he was familiar with the promoters. He was denied this opportunity.

Researchers in the end frustrated poet and the club has been denied entry, he resigned in October 1994 with the encouragement of Mrs. Masiyiwa keep his entrepreneurial dream.

The Dream

His pastor, Rev. Tom Deuschle, and frustrated at the inability of the church, a large construction project, inspired by the messages, Nigel sought a way to generate huge financial resources. He claimed that during the prayer of the divine mandate from God, Kingdom Bank, where he was to get started. He visited the pastor and the subsequent conflict and want to start the bank said. The godly pastor or 26 "big spectacles and wearing tennis shoes" who wanted to start a bank in the past year, amazed. The young man consulted before the prayers of the priest. Nigel could have been Mother to verify the reality of the Dream, the priest was something unusual. He told how God was leading them to start a bank, a witness to the congregation. Although timid, the young man to follow. Experience is a powerful vote of confidence was a godly pastor. Build capacity for the dependents of those mentors.

Nigel was paired with a young Franky Kufa. Chief Economist at the state poet Nigel Chanakira sixties. They can build their own entrepreneurial venture. Their specific competences and their players will be able to generate financial resources to identify each of their activity. Close financial discount houses, merchant banks offer an asset management company and an organization - for their vision was to create one. The model used in their venture for Nigel Empretec the business plan. The Solomon Mugavazi, Edwards and Company, and Br Purohit, Stanbic from a corporate banker from a stockbroker headhunted. Money market expertise provides Kufa, while Nigel and the team overall supervision of the government bond income from the transaction will be provided.

As a starting capital of $ 120,000 for each Z the budding partners were in the same part. Nigel and his wife talked to her recently acquired Eastlea they sold their home and vehicles to collect the equivalent of an initial capital of 17,000 $ US. Nigel, his wife and three children back to Highfield led his parents to live with. Garmony partners unregistered investments, which began trading as an established financial institution. Strategies for bootstrapping entrepreneurs do not pay this as a draw in their first year of operations has been agreed.

Mugavazi presented and recommended Lysias Sibanda, Chartered Accountant, to join the team.Nigel initial 26% share, and vote them to the blocking position to ensure that they retained a controlling shareholder.

Nigel competences acquired the deadly weapon that was capable of operating as a successful promotion of the institution (SMI) course "Successful Management Dynamics' credit. He insisted that all of its key officers at the beginning of the training program.

Kingdom of birth

Kingdom / p L Investments, a wholly owned subsidiary Garmony in November 1994 Securities (Pvt) Ltd. as a broker traded on the stock markets as a function of both the money.

Kingdom Securities Ltd., Kingdom (Pvt) Ltd. and the Kingdom of asset Ltd. (Pvt) Managers of the flagship Kingdom Home discount houses registered under the Banking Act, Chapter 188 Stockbrokers: 24 February 1995 with the Kingdom of the Securities of the following subsidiaries, 25 July 1995. Kingdom Stockbrokers with the Zimbabwe Stock Exchange ZSE 195, August 1995, was registered under Chapter 1. Generate a good income trading in pre-licensing, but they still lack the necessary capital and 20%. He turned them down as the majority of institutional investors to Greenfield, "too young" to promote the company was perceived by the people. At this stage of the National Merchant Bank, Intermarket and raising equity on the market and was executed by the veteran and seasoned promoters. However, Rachel Kupara, MD for the Zimnat, young entrepreneurs who believed in and participated in the 5% equity in the first Zimnat.

Norman Sachikonye, the Finance and Investments Manager Director at First Mutual followed suit, taking 15% equity share. On 1 August 1995, the two institutional investors as shareholders of Kingdom Holdings of securities were made. Garmony investments of close on 31 July 1995 and was reversed in Securities of the Kingdom, there has been a 80% shareholder.

In the first year of intense competition and new financial institutions, marked by discrimination in public institutions. All other operating units of the Kingdom with the Corporate Finance Division of Securities, Purohit well without leadership. The financial loss, spiritual and moral values, and separate administration of Purohit as a shareholder, a director on 31 December 1995 was forced departure. Kingdom began to grow after the dose.

Infrastructure development

Nigel and his team of market, share, profitability, and increasing the geographical spread of the aggressive growth strategy adopted with the aim of developing a strong brand. Developed a simple strategy for financial services and make them easily accessible to the general public around a business philosophy was built. The ATM and POS strategy that exploits the low cost to create a channel, while the Internet and Web-based applications on a platform that had been prepared to provide, espoused her.

On April 1, 1997, Kingdom Financial Services is an accepted focus on home and foreign currency trading, treasury activities, corporate finance, investment banking and advisory services were licensed for distribution. The purpose of the merchant banking arm of the Group with Victor Chando was under the leadership. In 1998, Kingdom Merchant Bank (KMB) and the license and assets of the Securities Ltd. in the Kingdom. The main focus of its treasury-related products, to - Balance sheet finance, and trade finance in foreign currency. As a support service to other units of the Research Institute for the Kingdom was established.

The entrepreneurial bankers, cognizant of their limitations in searches for active equity investors from the capital injection received by the critical mass quickly in demand. The strategic areas of mutual interest to expand the ownership base for the purpose of the loan. Intelligence on global emerging market equity from London from a failed attempt. No efforts were rewarded in 1997 when the bankers, although some of the following organizations and equity, reducing the shareholding of executive directors, as shown in the following: ïEUR Ipcorn 0.7%, ïEUR Zambezi Fund Mauritius / p L 1.1%, ïEUR Zambezi / p 0.7% L Fund. ïEUR Kingdom Employee Share Trust, 5%, ïEUR Southern Africa Enterprise Development Fund - 8% preference shares of the investee company as South Africa USUS President Bill Clinton, ïEUR Weiland Investments by the funds redeemable from the US 1,5 $ m amounting to a Mr. Richard Muirimi, Nigel is a long-time friend and business associate for the combined fund management company, up 1.7%, Garmony 71,7% directors - Investments in the executive. After a rights issue Zimnat ïEUR 4.8% from 14.3%, while it was under FML.

In 1998, the Kingdom of the four unit trusts which have proved very popular with the market. Kingdom Discount Stockbroking private portfolio of products, as well as the early home was to focus on individual clients. Aggressive marketing and brand awareness campaign as the most popular group of retail unit trusts in the Kingdom. Thus the Kingdom brand was born.

Discount Company of Zimbabwe (DCZ) of the Acquisition

Organic growth and a boom, the Kingdom of entrepreneurs decided to hasten growth synergistically. He was the oldest in the country to set up and the discounts, the Discount Company of Zimbabwe, which has acquired a list existed. Kingdom with the acquisition of critical competences acquired through the reverse of many coveted ZSE will be achieved inexpensively. The initial efforts of its officers in the merger negotiations with DCZ forty-year-old was swallowed by a four-year business organization may face not rebuffed by her. These entrepreneurs were not deterred. Nigel Stanbic to contact his friend Greg Brackenridge saitha takae money and shares in the hands of the shareholders was about ten, but on behalf of Kingdom Financial Holdings will be placed on the acquisition of ownership of Stanbic nominated. This strategy has the identity of the acquirer. Claud Chonzi, national social security (NSSA's) authority and GM Lysias Sibanda (Executive Director, The Kingdom) is a friend, to negotiate with a DCZ shareholders agreed to act as the front. NSSA is a known institutional investor and therefore the shareholders believed that they were dealing with a single institutional investor. Once the Kingdom DCZ 60% of control, the company took on themselves the Kingdom Financial Holdings Limited (KFHL) as listed on the Stock Exchange on the reverse. Negative real interest rates, the Kingdom has successfully been used to finance acquisition debt structure. The acquisition and subsequent listing on market confidence in the integrity of the once despised and young entrepreneurs.

Article Source :- http://dianedoe14876.typepad.com/blog/2012/01/case-study-of-kingdom-financial-holdings-limited.html

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Case Study of Kingdom Financial Holdings Limited

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