Historical Background

Marang Financial Services was established in the year 2000 to take over micro credit operations of Get Ahead Financial Services (GAFS) and the Rural Finance Facility (RFF). The company was initially incorporated and registered as a Section 32 Company (Limited by Guarantee) but in July 2001 converted to a Section 21 Company (Not for Profit). Marang currently has a network of 24 branches in 5 provinces, with its head office based in Randburg.

The organisation has been a significant player in the micro enterprise finance environment in South Africa since 2000, providing accessible micro credit in predominantly rural areas. This consisted of a group loan product and limited access to individual business loans for graduates of groups and new clients. Whilst committed to retaining this, we have also taken cognisance of the limitations such restrictions place on the ability of clients and Marang to grow.

The company’s resilience and tenacity has proved note worthy, to the extent that several funders have approached Marang with a view to entering into an equity partnership. The existing Section 21 company structure adopted by Marang has serious limitations in this regard.

In order to reposition itself as the preferred micro finance provider in South Africa, Marang registered a Private for Profit Company under the Companies Act as a subsidiary of the Section 21 company, to allow Marang to leverage its own capital and network together with like minded partners to catapult Marang into a new commercial era.

With effect from 1 April 2011, the trading operations are conducted by Marang Financial Services (Pty) Ltd.

The change in legal status of Marang was undertaken with a view to growth on a commercial basis, utilising product diversity, operational efficiencies and customer demands as the basis for growth. Critical to this intention is the need to plot a path of self sustainability and commercial viability. Marang as a Section 21 company only focused on the traditional group lending micro enterprise product, which remains a core product. The company needs and those of the market dictate that the company expands its products and services base.

The Section 21 entity now renamed Marang Enterprise Development Foundation, will remain a strategic shareholder in this company and will also fund research into and partner with other organisations to develop and provide business support to rural entrepreneurs.

The Foundation holds the assets of Marang Finance and acts as the custodian of values as the major shareholder. The Foundation will provide support to clients as part of the client growth strategy going forward.

The Acting Chairperson of the Foundation is Mr. Tefo Raditapole and the Chairperson of Marang Financial Services (Pty) Ltd is Ms Anne Hilton. Both have a long standing association with and commitment to the ideals of the organization.