Fintech company, 4G Capital, has announced the launch of NxtGen, a new credit solution developed specifically for the banking industry that will help provide working capital credit to micro, small and medium enterprises ( MSMEs) across Africa. The announcement was made at the just concluded Africa 2018 Forum in Egypt.
Its application is based on ‘Kuza’, a product of 4G Capital that has seen success across Kenya since its launch last year. To date, Kuza has provided 1,400 businesses over $500,000 in credit. According to a recent survey by TechnoServe, one of the company’s partners, customers using Kuza saw an 82 percent average increase in revenue over 12 months.
4G Capital targets to use the machine learning system to utilize data in smarter ways, using data from multiple sources to design credit products at a scale which are indeed optimized for segments, business risk, timescale and affordability.
The Seed Funds (TSF), a leading financial institution in Ghana will be the company’s first banking customer to utilise NxtGen’s turnkey technology that integrates seamlessly with their existing banking system. In line with 4G Capital’s mission to empower MSME in Sub-Saharan Africa, NxtGen will enable TSF to reach the underserved MSME sector across Ghana in an automated and cost-effective way.
According to a press release, Wayne Hennessy-Barrett, Founder and CEO of 4G Capital, said, “We are proud to stand alongside The Seed Funds, showcasing the power of partnership between bank and fintech. Together we seek to address the MSME finance gap in Ghana which currently stands at over $4.9billion.”
Albert O. Mmegwa, CEO of The Seed Funds said his company is excited to partner with 4G Capital to introduce an innovative product to the Ghanaian market. “TSF is committed to partnering with innovative fin-tech companies to develop financial products and services for Ghanaian consumers. We expect the full platform to be disbursing loans at the beginning of next year,” he said.
4G Capital has supported micro-enterprises in Africa since 2013, providing enterprise training with working capital loans to improve financial literacy and help small businesses grow sustainably. This partnership will go a long way to empower and boost MSME in Ghana,
TSF will use NxtGen technology to support the ‘last mile’ retail supply chain by providing working capital credit, blended with 4G Capital’s fintech platform to established micro-retailers on behalf of large distributors and supply chain aggregators.
