Financial Times Ranks 4G Capital as One of Africa’s Fastest-Growing Companies

NAIROBI, Kenya - The 4G Capital, the market-leading neobank powering micro and small business growth in Kenya and Uganda, has been ranked as one of Africa’s Fastest-Growing Companies, by the Financial Times.

The Financial Times compiled the ranking with data company Statista and based findings on compound annual growth rate (CAGR) in audited revenues from 2018 to 2021.

4G Capital (Fourth Generation Capital Ltd) is ranked Number 43 in Africa and Number 7 in Kenya with an absolute growth rate of 201 percent and an average Compound Annual Growth Rate (CAGR) of 44.4 percent over the past ten years in Kenya. 4G Capital consistently delivers sustainable high growth with growing profit margins as the company achieves economies of scale with its digital credit services.

The company’s scalable and capital-efficient model has loaned over $340 million between 2016-2022, significantly higher than the microfinance industry average lending-to-capital ratio.

4G Capital provides 100 percent unsecured working-capital loans, enterprise training, and access to digital solutions for predominantly informal Micro, Small, and Medium enterprises (MSMEs). These entrepreneurial companies are the backbone of Africa’s economies and support 80 percent of Africa’s employment and over half of the region’s GDP. Most of these businesses cannot access traditional sources of finance and lack the cash flow to grow their companies.

According to the IFC’s SME Finance Forum, Africa’s MSME finance gap is $ 331 billion in Kenya, the finance gap is $19bn. Without access to institutional capital, 72 percent of MSMEs rely on family or friends for loans, and 30 percent fail due to funding shortages.

4G Capital is committed to delivering the right products and services that bridge the MSME finance gap in Africa and plays a vital role in the informal sector's economic advancement on a pathway to formality.

The company blends client-centric relationship management with proprietary AI technology to minimize default risk. 4G Capital’s clients maintain high repayment rates (around 95 percent ) without needing refinancing; on average, customers increase their annual revenue by 82 percent. One of the world’s top 10 Finance B-Corporations, 4G Capital, has positively impacted over 4 million people.

Upon receiving the recognition, Wayne Hennessy-Barrett said, “This recognition is a most welcome milestone in the 4G Capital journey. Having recently accompanied US Ambassador to Kenya, Meg Whitman, on her roadshow to promote investment in Kenya and Africa, we are very proud to play our part in this most important and growing market. We are democratizing wealth creation by helping small businesses to grow, and in turn, demonstrating that global capital can get world-class returns by driving the regenerative economy from which everyone benefits.”

4G Capital employs almost 1500 employees across Kenya and Uganda, nearly tripling since the start of 2022. Since its inception in 2013, the company has loaned over 2,600,000 small working capital loans via mobile money networks valued at over $340 million. The company has over 350,000 clients, 74 percent female, and 53 percent run micro and SME enterprises in rural areas.

Most 4G Capital clients receive customized business training programs and credit guidance via mobile apps and in-person via a nationwide network of branches. 4G Capital’s unique machine learning technology delivers high-fidelity insight into client risk and affordability.

As a result, 4G Capital consistently achieves high collection rates (95 percent ) without collateral or refinancing its clients, only lending to viable businesses on terms that are right for them. 4G Capital has positively impacted over 4.1 million people.

GAROWE ONLINE