4G Capital sets up shop in Uganda to empower micro and small enterprises

4G Capital has opened new offices in Uganda to empower micro and small enterprises (MSMEs). The company commenced operations in Kalerwe and Nakawa markets in Kampala and will be expanding its operations across Uganda and is hiring staff now.

4G Capital has been supporting MSMEs in Kenya since 2013 by providing important financial literacy training blended with unsecured working capital credit. 

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 offers 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 4G Capital says the number of its customer branches in Kenya reached 70, where over $21m was disbursed over the course of the year.  It adds that 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).

Have anything to add to this article? Leave us a comment in the comments section below. In the meantime, follow or subscribe to our newsletter to ensure you don’t miss out on any future updates.