This archive report was first published on 19 December 2019.
On December 19, 2019, 4G Capital announced a significant milestone in its fundraising efforts, securing a $2m debt facility from Ceniarth LLC to support lending to small and medium-sized enterprises (SMEs) in East Africa.
The investment, 4G Capital's second round of fundraising, brings the total amount raised to $4m, marking a significant step forward for the company's mission to provide financial services to underserved businesses in the region.
According to Wayne Hennessy-Barrett, CEO and Founder of 4G Capital, the investment will enable the company to meet the demands of its growing customer base and continue its positive impact in the region. 'We have 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 – a fantastic way to end a great year,' he said.
Since its inception in 2013, 4G Capital has lent over 750,000 loans valued at $90m, with revenue increasing by 97% over the last 12 months. The company has also supported over 60,000 MSMEs, with repayment rates remaining above national averages at over 94% (without refinancing).
4G Capital's approach to lending, which includes a curriculum of enterprise and financial literacy training blended with working capital loans, has seen its customers increase their revenue by an average of 82% year on year.
Looking ahead, 4G Capital plans to continue growing its network of physical branches across Kenya and Uganda, with an additional 24 branches in Kenya and 34 in Uganda, bringing the total network to 150 branches by the end of 2020.
