Browsing: Financing SMES

The economic disruption caused by the Covid-19 pandemic has slowed the region’s growth projection to 1.2 per cent for 2020.…

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 …

Of recent times, microfinance has demonstrably become the most coveted solution to building a robust and efficient national economy that is inclusive of the low-income segment in both urban and rural areas.

The historically nascent level of microfinance services in Tanzania has prompted various non-government organization (domestic and foreign) and financial institutions to take up active roles in providing this service. Institutions such as the Foundation for International Community Assistance (FINCA), SEDA, PRIDE and Bangladesh Rural Advancement Committee (BRAC) are some of the active players to have taken up this role in the microfinance subsector. Meanwhile, larger financial institutions have also ventured into carrying out microfinance operations. Banks such as NMB and CRDB which was established in 1995 as a hybrid of a commercial and microfinance bank are key examples of this.

The exciting evolution ofmicrofinance can be traced from before 2000.

Before 2000

The microfinance movement, which is a …

CDC Group, the UK’s publicly owned impact investor, has announced a commitment of US$39.2 million to support SMEs in West Africa. CDC is backing Verod Fund III and Adiwale Fund I, West-African based private equity funds targeting SMEs in the region, with commitments of US$19.2m and US$20m respectively.

In West Africa, banks and low levels of private equity activity are currently struggling to meet the financing needs of SMEs, hampering their potential as engines of economic growth in the region. Access to finance is cited as the top barrier for doing business in Nigeria and Ghana. Increasing access to capital to this market is a core element of the CDC’s Africa strategy by backing well-networked, experienced local teams.

This should, in turn, support private sector development, economic growth, and long-term sustainable employment, particularly for the semi-skilled and low-skilled workforce in the region, therefore contributing to Sustainable Development Goal 8: decent …

The MSME sector employs approximately 14.9 million Kenyans and contributes an estimated 28 per cent of the GDP…