Kampala, Uganda — There is an opportunity for small and medium enterprises to further access credit more efficiently, thanks to a newly established technological gateway to the European-based investors.
This follows the launch of the partnership between CapitalSavvy, a Ugandan investment management and advisory firm and Monetix, a Swiss based financial technology development company.
The joint venture, which was penned recently, is expected to support SMEs with innovative finance solutions key of which is an end-to-end digital solution that enables clients to apply for loans and get disbursements done on mobile money or their bank accounts, with minimal physical interaction.
CapitalSavvy’s CEO Reginald Tumusiime said: “The only part where we interface with the client physically is at the point when we are doing due diligence on them. Otherwise, this is an end-to-end digital solution. This solution aligns to the fact that the population’s use of mobile phones continues to grow. We have seen the success that mobile money has had over the years. So, we want to align to that kind of convenience and growth.”
Tumusiime said, they would have an option of financing SMEs through banks especially for very big transactions.
The process, right from the application stage, to appraising the loan, then to approving it and disbursement is done online.
Monetix’s CEO, Patrick Prinz, said the partnership is an opportunity to build a trusted access into a country with a lot of potential.
“What we bring to the table as partners is technology which allows for a much more efficient transfer of finances, as well as a source of funding which is seeking for positive yield,” he said.
In various developing countries including Uganda, SMEs account for approx. 90% of the private businesses resulting in more than 50% of employment and an estimated 40% contribution to GDP.