4G Capital has secured $2.0 million in new funding, an investment aimed at furthering its mission to support micro-enterprises across Africa. Since 2013, the company has provided financial literacy training alongside working capital loans, enabling small businesses to achieve sustainable growth. Its model integrates bespoke business training with micro-loans, delivered through mobile apps and face-to-face outreach, allowing clients to access funds rapidly via mobile money using either smart or feature phones.
The funding round underscores 4G Capital's role in addressing the significant finance gap faced by Micro and Small and Medium Enterprises (MSMEs) in Africa, a segment accounting for over 30% of GDP but struggling with credit access. This gap can exceed $19 billion in Kenya alone, with many small businesses failing due to lack of funding. 4G Capital leverages proprietary machine learning technology to gain high-fidelity insights from data-dark sectors, designing scalable credit products optimized for client business risks and affordability. This approach has resulted in high collection rates, consistently above 94% without collateral or refinancing, and has positively impacted over 1.8 million people by early 2022, with clients increasing revenues by an average of 82%.
With operations established in Kenya and Uganda, this capital infusion will be instrumental in accelerating 4G Capital's strategic growth initiatives. The company plans to deploy the funds to scale its operations across the African continent and expand its suite of financial products and services. This investment positions 4G Capital to continue its trajectory as it works to broaden financial inclusion and empower more micro-entrepreneurs to grow their businesses sustainably.
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