Browsing: 4G Capital

• Small and Medium enterprises (SMEs) are the backbone of the world economy, accounting for most businesses across nearly every region.
• In Africa, SMEs provide an estimated 80 percent of jobs across the continent, representing an important driver of economic growth.
• Credit constraints are a serious challenge for SMEs. Without reliable sources of working capital, SMEs are unable to make investments needed for growth, leading to stagnation.

According to the World Bank, Small and Medium enterprises (SMEs) are the backbone of the world economy, accounting for most businesses across nearly every region. In Africa, SMEs provide an estimated 80 percent of jobs across the continent, representing an important driver of economic growth.

The global lender says Sub-Saharan Africa alone has 44 million Micro, Small and Medium Enterprises (MSMEs) , almost all of which are micro.

“For these businesses to grow, create more jobs, and generate economic growth, they need access to …

By sensing mild changes in financial well-being, the EWS gives lenders the opportunity to intervene and improve lending decisions and risk management.
Further testing, as part of the pilot, will reveal the predictive power of these indicators on borrowers’ behaviour and to what extent they translate to repayment challenges, such as delinquency, default, and rollover.

“The Financial Stress Early Warning System trial is a ground-breaking exercise in data-led client protection,” said Wayne Hennessy-Barrett, CEO and Founder of 4G Capital.…

Hennessy-Barrett adds that tackling the finance gap is going to take a combined effort from across the financial industry.

He says there is a need for partnerships that can complement one another.

“We are actively signing up as many partners as we can across the supply chain to support micro and small businesses. By linking small store holders, distributors, vendors and investors, we can work together to construct the framework for inclusion and growth with the digital connective tissue to build high growth, an integrated economy in African markets. 4G Capital is in an incredibly exciting position as we develop and deploy new products and capabilities to scale to the vast and growing markets in Africa and other global emerging markets,” he notes.…

4G Capital announced the completion of its second round of fundraising. The funding was secured by a $2 million debt from Ceniarth LLC, making the total raised to $4 million.

The company will use the investment for lending to its growing customer base of informal MSMEs across Uganda and Kenya.

Since the company was starred in 2013, 4G Capital has grown exponentially, lending over750, 000 loans valued at $90 million. In 2019, the company’s revenue increased by 97 per cent as 4G Capital supported over 60,000 MSMEs.

By the end of 2020, 4G Capital will have lent $43.6 million surpassing all expectations. Without refinancing, repayment rates remain above national averages at over 94 per cent.

Also Read: Mentors jostle for space in Kenya’s challenging SME sector

“The rapid expansion of mobile and technology-based financial services in emerging markets has the potential to provide critical capital to individuals previously excluded from …