Blockchain Might Boost Microfinance in Sub-Saharan Africa

[felixesteban]

In a bid to launch the first African blockchain platform to raise funds for microfinance, Kenya-based 4G Capital aims to begin issuing tokenised bonds worth USD 10 million at the end of this month. The funds are to be used to stimulate the development of micro and small businesses in Sub-Saharan Africa.

Tokenised bonds are financial instruments that allow investors to purchase them with cryptocurrencies.

Under the plan, the bonds are to be offered to investors willing to pay in bitcoin or ether, issued on a platform operated by Canada’s Finhaven, a blockchain-powered securities exchange.

“We may accept payments in additional crypto and fiat currencies in the future,” Anthony Nicalo, the co-founder and chief revenue officer at Finhaven, told Cryptonews.com.

The tokenised bonds are to facilitate international expansion, according to Lydia-Claire Halliday, the spokesperson for 4G Capital. Raised funds will be paid to the company as a debt investment via Finhaven in US dollars. The Kenyan firm will use this capital to provide loans to micro and small enterprises in Africa. The profits from these operations will allow to repay the loan.

In 2013, the company launched its operations in Kenya, and this month, it expanded into neighbouring Uganda. Within five years, the business aims to establish a presence in seven countries across Sub-Saharan Africa.

USD 40m in 12 months

“4G Capital specialises in the holistic approach of scaling micro and small enterprises. By providing business training in combination with working capital, they ensure their clients are provided with the ways and the means to succeed,” Halliday said.

Before new clients are accepted, they are tested for business viability and legitimacy. First loans are accessed within 24 hours, and repeat loans within 2 to 3 minutes. Business training is provided to clients through various face-to-face and digital channels.

https://cryptonews.com/exclusives/blockchain-might-boost-microfinance-in-sub-saharan-africa-1640.htm

[Dheeraj239]

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