In contrast to many developments in the current volatile global market, leading technology distributor Comztek's securitisation agreement has been renewed for another three years.
Comztek funded its growth over the last nine years in South Africa and Africa, through a successful securitisation structure. In its previous financial year, the agreement funded Comztek's growth of 22% for South Africa and 30% for Africa. The renewal of the agreement increases the immediate available funding from R95 million to R107 million.
“This transaction not only allows Comztek to be financially independent, but also provides the necessary stability and peace of mind to our customer base and ICT resellers in Africa,” says Andries Coetzee, Comztek Financial Director.
“The structure has also been one of the main drivers behind our growth from a R386 million per annum to close to a R1 billion per annum.”
The new agreement also sees the introduction of a clause through which the transaction can be adjusted to allow for more funds if needed.
“The renewal of the securitisation agreement helps us to accelerate our planning in the rest of Africa, as the biggest inhibitor for African growth at present is working capital. Setting up branches and stocking them costs a lot of money,” says Coetzee.
In the past year, Comztek expanded its relationship with HP Networking, by adding distribution rights for East Africa (Eritrea, Ethiopia, Kenya, Rwanda, Seychelles, Somalia, Tanzania and Uganda) and southern Africa (Botswana, Lesotho, Malawi, Mozambique, Namibia, Swaziland, Zambia and Zimbabwe). The company has offices in five African countries and transacted in 37 Africa countries during the previous financial year.
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