What is Africa Growth Corporation?
- Africa Growth Corporation (OTC: AFGC) aims to finance solutions to the Sub-Saharan housing market, acting as a seamless conduit for capital to flow between the U.S. and international capital markets Wall Street and selected countries in Sub-Saharan Africa.
What is Namibia MAC?
- Namibia Mortgage Acceptance Corporation (Namibia MAC), a subsidiary of Africa Growth Corporation, is one of the first conduit established to flow funds from Wall Street into an attractive, investment grade, Sub-Saharan African nation.
- Namibia MAC will facilitate access to financing solutions and promote sustainable, responsible homeownership for middle-income, and emerging-middle-income, government workers in Sub-Saharan Africa.
- Through its partnership with First Capital Treasury Solutions (Pty) Limited, Namibia MAC is participating in an existing public-private partnership with the Government of Namibia.
How does this partnership operate?
- First Capital provides the mortgage origination and servicing functions, and currently, manages an existing portfolio of $80 million.
- Namibia MAC will raise U.S. capital initially by issuing attractive income-producing bonds,
- facilitating a pipeline that will allow Namibia MAC and First Capital Treasury Solutions to provide home mortgages to Namibian government workers.
How can U.S. investors participate in Namibia MAC’s program?
- Starting April 10th, Namibia MAC will launch a $250 million bond program in conjunction with investment bank Wellington Shields & Co. on the New York Stock Exchange. The bonds from the program will be issued in monthly tranches to 506(c) to accredited investors until the bond program is fulfilled.
After the initial bond offering is completed, how is Namibia MAC or Africa Growth planning on raising additional capital?
- Africa Growth plans on raising up to $50 million via a Reg A+ offering later this year. Namibia MAC will be a regular issuer of both debt and equity to help finance the permanent demand for fresh mortgage funding.
What problem is Namibia MAC helping to address?
- Namibia – along with all of Sub-Saharan Africa – is currently faced with an acute shortage of housing, in large part due to a lack of mortgage financing options for otherwise eligible candidates.
- By injecting capital initially from U.S. bond market investors who are seeking attractive yields, Namibia MAC is able to provide creditworthy prospective homeowners with their own property through mortgages. This opportunity can be a life-changing experience for workers and their families.
Why does Namibia represent a worthwhile investment opportunity?
- Since it achieved independence from South Africa in 1990, the African nation of Namibia has maintained political stability and sound economic management fostering growth: between 2010 and 2014, the economy grew at an average annual rate of 5.6% per year.
- Namibia is considered an upper-middle income economy, rich in mineral resources including uranium and diamonds, with a steadily improving employment rate.
- Moody’s and Fitch credit rating agencies have considered Namibia an investment-grade country since 2005.
- The president of Namibia, Hage Geingob, harbors strong relations with the U.S. and in particular New York City. He received his BA degree from Fordham University in New York City and subsequently attained an MA degree in International Relations from the Graduate Faculty of The New School, New York.
- The Government of Namibia has in recent years consistently outlined housing as one of its development priorities.
Who is eligible to participate in Namibia MAC?
- The program is available to all Namibian State employees (law enforcement, medical workers, teachers, etc.) whose monthly mortgage payments have been guaranteed by the Namibian government for the duration of their employment.
- Applicants monthly mortgage payments can not be more than 33% of their gross salary, ensuring that payments are affordable and manageable.
What does “guaranteed by the Namibian government” mean?
- The Namibian government collects the mortgage payment at the source -- it deducts the applicable amount from each borrower’s monthly paycheck and subsequently provides immediate payment to the lender.
What is the demand for housing provided by Namibia MAC?
- At present, Namibia MAC’s partner in Namibia has a backlog of approximately 3,250 pre-approved applicants. As awareness of our program expands, we anticipate increased demand for housing.
- The current market demand for housing in Namibia necessitates the immediate creation of approximately 200,000 mortgages. The issue at hand, which Namibia MAC is addressing, is a distinct shortage of capital for middle-income and emerging-middle-income earners wishing to purchase a home. With urbanization increasing at an annual rate of 4.43%, demand for affordable housing in Namibia will remain strong for the foreseeable future.
How long have First Capital Treasury Solutions been maintaining its current portfolio of $80m (USD)?
- The portfolio has been under management by First Capital for two years.
How is its portfolio currently performing?
- There are, at present, more than 1,800 mortgages in the $80 million portfolio and there have been ZERO defaults or impairments since inception.
How much capital is Namibia MAC hoping to raise, and over what time period?
- Namibia currently requires about $10 billion in mortgage capital to satisfy the largely unmet need for housing. Though the scale of the issue is considerable, we hope to be able to raise a significant portion of that capital over time via the NYSE bond offering.
What kind of returns can investors expect to see?
- This will, of course, vary over time, but we target returns in U.S. currency in the high-single digit region – around 9%.
Who is the bond sponsor?
- Wellington Shields & Co. LLC and its syndicate members will be responsible for continual bond syndication and listing.
Where / how can investors purchase Namibia MAC Bonds?
- Prospective accredited investors are encouraged to call Wellington Shields & Co. or their broker to purchase Namibia MAC bonds.
What is the maturity date of the bonds?
- The bonds have an initial seven-year maturity rate.
What is the initial rate of return of the sovereign bonds of the government of Namibia?
- Namibia has, to date, issued $1.25B USD in sovereign bonds, and the current yield of those bonds is approximately 5%.