Member News: 4G Capital Launches Award Winning Financial Services in Uganda
As part of its strategy to expand across the African continent, 4G Capital is delighted to announce the opening of offices in Kampala and launch of award winning financial services designed to empower micro and small enterprises (MSMEs) across Uganda.
4G Capital has supported the sustainable growth of MSMEs in Kenya since 2013 by providing important financial literacy training blended with unsecured working capital credit.
4G Capital is able to offer 100% unsecured loans to small businesses by using its proprietorial artificial intelligence system to establish correct levels of affordability. Customers receive valuable training in record keeping and inventory systems, financial management and customer relationship skills. As a result, according to a recent survey, 4G Capital’s customers in Kenya recorded an average revenue growth of 82% within one year.
By the end of 2018 the number of 4G Capital customer branches in Kenya reached 70, where over $21m was disbursed over the course of the year. Collection rates have consistently remained above the national average, at 94.08%.
During 2018, 4G Capital also received two positive credit ratings: ‘BB’ from MicroFinanza, and ‘BB+’ from the Global Credit Ratings Co. 4G Capital was granted a money-lenders' license from the Uganda Microfinance Regulatory Authority (UMRA).
4G Capital have commenced operations in Kalerwe and Nakawa markets in Kampala, bringing much needed financial inclusion services to traders and small businesses. The company will be expanding its operations across Uganda and is hiring staff now.
4G Capital is also partnering with Ugandan based multinationals and distributors, to help boost and sustainably strengthen the FMCG supply chain. By providing short term credit to retailers, 4G Capital’s B2B product offering, KUZA aims to unlock potential and increases retail purchasing power. KUZA is already being used by a number of East African and Global Distributors.
The company recently secured funding from FSD Uganda to conduct important research and support its rollout across the country. The joint research will provide valuable disaggregated insights on the finance gap nationwide that will ensure 4G Capital continues to tailor its solution to support those most in need.
The MSME finance gap in Africa currently stands at $331bn according to the SME Finance Forum, an IFC organisation. These small businesses contribute to over 50% of Africa’s combined GDP and more than 80% of employment. But, despite their critical role, many MSMEs suffer from financial exclusion and limited access to appropriate financial services resulting in inescapable poverty.
4G Capital has won numerous awards in recognition of its excellence in delivering financial inclusion services. Recently, 4G Capital was accredited as one of the London Stock Exchange's Companies to Inspire Africa. 4G Capital also received a “Responsible Digital Innovator of the Year” honorary award from the SME Finance Forum at its Annual Awards event held in Madrid.