4G Capital, which provides instant access to credit for small business growth in Africa has opened its Kampala office to empower micro and small enterprises (MSMEs) across Uganda.
The new office is in line with the firm’s pan-African expansion plans. The office will help the firm offer 100% unsecured loans to small businesses in Uganda to help them achieve their growth plans in a shorter span of time.
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%.
4G Capital was granted a money-lenders’ license from the Uganda Microfinance Regulatory Authority (UMRA) and has commenced operations in Kalerwe and Nakawa markets in Kampala. The firm is now embarking on expanding its operations across Uganda.
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 for a joint research 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.