South Africa’s struggling furniture retailer, JD Group, late on Monday said it would dispose of its financing unit, which has been battered by locals inability to pay off their debt.

JD Group, which is 86 percent-owned by furniture maker and retailer Steinhoff International, said its finance unit would be sold to an unnamed global consumer finance firm.

The furniture maker added that the transaction whose value had not been disclosed at the time of writing, did not involve its insurance business. The deal is yet to be completed.

Share price of JD Group gained 2.4 percent on the news during Tuesday’s intraday trading on the JSE, Africa’s biggest bourse and among the world’s top 10 bourses.

“It’s another example of just how bad things are in the consumer credit sector,” Reuters quoted Nic Norman-Smith, CIO of Lentus Asset Management, as having said.

“For Steinhoff, the sale would clear up a lot of uncertainty in terms of future capital requirements in funding JD Group. It also focuses JD’s future onto pure retail – which is more in-line with Steinhoff’s core business,” Norman-Smith told Reuters.

Companies like JD Group, which offer credit to South Africans, are facing untold pressure as most South Africans are either unemployed or have lost their jobs.