Integrated Report 2020

taking licence and follows on the successful issue of a first medium-term notes programme of MUR2.0 bn. The bonds have been AA rated by CARE Ratings and were listed on the Official List of the Stock Exchange of Mauritius on 30 October 2020. We are comforted by the appetite and trust shown by the investors for the Cim bonds which will be used to support our lending activities and re-finance some of our existing loans. Improving our governance structure Another important milestone was achieved at the end of financial year 2019/2020 following the completion of the amalgamation of Cim Finance Ltd, Cim Agencies Ltd, Cim Shared Services Ltd, Cim Management Services Ltd and Mauritian Eagle Insurance Company Ltd with, and into, CIM Financial Services Ltd. The amalgamation, effective as from the start of the financial year 2020/2021, has enabled us to significantly simplify our group structure and will help us to achieve an optimal governance framework through a unitary board. The existing Board of CIM Financial Services Ltd was further strengthened with the addition of Board members of Cim Finance Ltd, effective July 2020. Digital transformation In our Annual Report last year, we spoke about investing in our digital capabilities with the anticipated launch of our digital app. I am pleased to report that our app named ‘Mo Finans’ was launched in April 2020, during the lockdown period itself and this proved to be of great assistance to our clients in enabling them to effect payment of their monthly instalments in a contactless and safe manner. As online transactions are now well established and set to grow even more in this new environment, we have also upgraded our systems to offer an online credit finance module, which integrates with our merchants’ e-commerce websites. The comprehensive new system even allows the generation of contractual documents online, which the clients can sign digitally using Docusign. Regional expansion The greenfield hire purchase business that we set up in Kenya in April 2017 has also been exposed to the negative impact of COVID-19. We have re-adjusted our strategy in Kenya to generate better quality sales. As past experience has shown, investment in an overseas market is never an easy and pain-free exercise in ‘normal’ times, not to mention with the COVID-19 pandemic. However, the Board is of the view that our investment in Kenya is an important step in our medium- to long-term strategy to diversify our revenue streams from a geographical point of view. Outlook We believe that our focus and attention over the next couple of years will still strongly be on the domestic scene, in the context of the prevalent and persistent global uncertainty. This has been exemplified by the latest IMF report issued in October 2020, which highlights that ‘the global economy’s long ascent back to pre-pandemic levels of activity remains prone to setbacks”. We will thus work to further consolidate our domestic business and comfort our strong position within the non- bank financial sector in Mauritius. The decision taken two years ago to relinquish our deposit-taking licence has been successfully followed through. This, coupled with the completion of the amalgamation, has allowed us to simplify our governance, organisational and administrative structures to create the optimal and most efficient management “go to market” team. We have now embarked on our next journey. Indeed, at the board meeting of September 2020, we met to discuss and approve our new three-year strategic plan which will focus on two parallel areas of future growth and expansion, namely leveraging our strengths in the retail mass market and the SME market whilst adhering to the key themes of customer-centricity, simple focused offering and technological- and digital-driven differentiation. The next few years are bound to be challenging for all of us, be it at a personal level or at the professional level. We shall strive to ensure that our business, our employees, our customers and our shareholders continue to benefit from our strong brand and time-tested values. We believe in strong partnerships with all our stakeholders, including Government and the regulatory authorities to whom we report and whilst we shall uphold our common interests, we shall do so within the broader interest of the community and the Nation. I seize this opportunity to thank all Cim employees for their unflinching support to the Company over the last year and, more particularly, during the unprecedented period of the lockdown and post-lockdown, which has allowed us to stand strong and united and emerge resilient and confident in the future in spite of all odds. I also convey my deep-felt appreciation to the shareholders and the Board of Directors for the trust placed in me to be at the helm of this Company. I wish to acknowledge the contribution of the successive and able leaders and especially to Colin Taylor, the outgoing Chairman, who have, over the last 30 years, worked towards making Cim a household name in the Mauritian landscape. AISHA TIMOL – G.O.S.K Independent Director and Chairperson INTEGRATED REPORT 2020 CIM FINANCIAL SERVICES LTD 15