- 4G Capital joins US Ambassador to Kenya Meg Whitman on the US-Kenya Business Roadshow in San Francisco.
- The Roadshow is an initiative with the US Government’s Prosper Africa programme.
- Over the past decade, 4G Capital has disbursed loans exceeding $390 million to SMEs in Kenya and Uganda.
4G Capital, a pioneering neobank at the forefront of fostering micro and small business growth in Kenya and Uganda, has been selected as one of the companies to accompany US Ambassador to Kenya, Meg Whitman, on the US-Kenya Business Roadshow.
This roadshow, is an initiative with the US Government’s Prosper Africa, is going down on September 15th at the Mission Bay Centre, San Francisco.
Ambassador Whitman, a former CEO of eBay and Hewlett Packard, aims to highlight the significant and burgeoning investment opportunities in Africa. The continent is poised for significant growth, with projections indicating that 25 per cent of the global population and one in three working-age adults will call Africa home by 2050.
4G Capital seeks to address SME challenges
This demographic advantage has the potential to drive economic growth and innovation. However, to harness this potential fully, it is crucial to address the challenges facing MSEs.
Given this backdrop, it’s no surprise that the rapid expansion of the tech and financial services sectors in Africa is capturing global attention.
4G Capital, a standout on the Financial Times’ list of the 100 fastest-growing companies in Africa and recognised as the highest-scoring fintech B Corporation, is addressing the $331 billion finance gap on the continent.
They do this by offering micro-loans and providing essential enterprise training through their innovative platform. Over the past decade, 4G Capital has disbursed loans exceeding $390 million.
4G Capital also provides bespoke training programs and credit guidance through a mobile app and in-person sessions in its branches across Kenya and Uganda. This holistic approach ensures that MSEs not only receive the funds they require but also the knowledge to manage their finances wisely.
The company employs a unique machine learning evaluation algorithm called EVA (Evaluation Algorithm) to assess the creditworthiness of MSEs. EVA analyses a range of data points to provide highly accurate insights into risk and affordability.
Lending decisions tailored to specific needs
This means that 4G Capital can make lending decisions that are tailored to the specific needs and circumstances of each business, reducing the risk of over-indebtedness and defaults.
With a robust base of US investors, 4G Capital contributes to the larger narrative of rising US investments in Africa.
Ahead of the roadshow, Wayne Hennessy-Barrett, the Founder and CEO of 4G Capital said, “We are excited and honored to be part of Ambassador Whitman’s mission to bridge Silicon Valley with the Silicon Savannah. 4G Capital takes pride in showcasing an African solution to the global challenge of fostering small enterprise growth. The synergy between U.S. and African expertise is pivotal in achieving the right product-market fit. We eagerly anticipate increased U.S. engagement with the world’s fastest-growing markets.”
Founder and Co-Founder, Wayne and Genevieve Hennessy-Barrett, will be in the Bay Area until September 23rd as part of Ambassador Meg’s roadshow. They will also participate in TechCrunch Disrupt from September 19th to September 21st.
Following the successful closure of its Series C funding round in February last year, 4G Capital is exploring strategic partnerships to expand its reach beyond Kenya and Uganda, venturing into other emerging markets.
Africa’s $450 billion SME financing gap
The aim is to play a significant role in addressing the staggering $5 trillion Global MSME finance gap. And this underscores their commitment to facilitating economic growth and prosperity in developing economies.
Currently, the International Finance Corporation’s (IFC) SME Finance Forum reports that MSEs in Sub-Saharan Africa confront a staggering finance gap of $450 billion. This gap is particularly concerning given that MSEs are the backbone of many African economies. Data shows that SMEs account for 80 per cent of total employment and contribute over 55 per cent of GDP.
Without access to institutional capital, a significant portion of MSEs resort to borrowing from family and friends, and many face the grim reality of business failure due to funding shortages.
Read Also: 4G Capital raises $4million for MSME finance