4G Capital secures USD 4 million facility to support East African expansion
Kenya and Uganda focussed micro-lender 4G Capital, has raised USD4 million in additional capital for onward lending to informal micro, small and medium sized enterprises and to support expansion in the region during 2020. The lender aims to grow its network of brick and wall outlets to 150 branched over the next 12 months.
The USD 4 million was achieved after the injection of an USD2m debt facility from Ceniarth LLC, bringing the total raised to $4million. 4G Capital will use the investment for onward lending to a growing customer base of informal micro, small and medium-sized enterprises across Kenya and Uganda.
4G capitals says that it has seen rapid growth since its inception in 2013, lending USD90 million in slightly over 750,000 loans. The micro-lender has posted a 97pc growth in revenue over the past 12months, as 4G Capital supported over 60,000 MSMEs. Total lending for this year is expected to have topped USD43.6m by December 31 says the company which has registered a 94pc repayment rate without refinancing.
“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 the financial system”, says Diane Isenberg, the founder of Ceniarth.
“With this expansion comes great responsibility to ensure that customers understand and benefit from these services and are not exploited by providers focused more on growth than client impact. We are proud to support 4G Capital as a best-in-class financial lender that listens to the needs of the communities that it serves.”
4G Capital says it has achieved good results by combining credit with financial literacy for its mainly small business customers. The company offers customers a curriculum of enterprise and financial literacy training blended with appropriately sized working capital loans, an approach that has seen its customers increase their revenue by an average of 82pc year on year.
CEO and Founder of 4G Capital Wayne Hennessy-Barrett, says together with Ceniarth “we share a fierce passion for improving conditions for the underserved and neglected businesses of the African economy by providing financial services that sustainably unlock potential and help communities. 4G Capital has surpassed all key performance targets for 2019, and Ceniarth’s investment will help us meet the demands of our growing customer base and continue our positive impact into the future.”
The company says it will continue to grow its network of physical branches across Kenya and Uganda, with an additional 24 branches in Kenya and 34 in Uganda. That will bring its network in the region to 150 branches.