Citi Bank and 4G Capital Group have partnered to tackle financial exclusion in Kenya. Citi will provide a KSh 285 million term loan that will reach over 25,000 small businesses. The loan is part of a $2.5 billion guarantee facility from the U.S International Development Finance Corporation and the Ford Foundation. The program seeks to provide early-stage financing in local currency for companies to boost access to product and services in emerging markets.
In the collaboration, Citi and 4G Capital will address inventory finance needs of last-mile distributors of fast-moving goods, allowing more goods and services to reach low-income communities.
“We are delighted to be working with Citi as our strategic finance partner as we expand the reach and breadth of our services to Kenya’s MSME sector. 2020 has been a challenging year, but the backbone of our community and economy, the informal traders, have shown an inspiring degree of resilience.”
4G Capital Founder and CEO, Wayne Henessy-Barrett
In an exclusive interview with The Kenyan Wallstreet, it. was revealed that Citi will provide working capital to 4G Capital to help MSMEs expand their sustainability.
In return, 4G Capital will offer Citi’s portfolio of FMCG clients through its financial product, Kuza, which allows businesses to access goods on credit rather than paying on delivery. The access to credit will allow small businesses owners to maintain minimum stock, and increase their order sizes.
Martin Mugambi, Citi Bank Kenya CEO, says the partnership will achieve positive social impact and inclusion that benefits underserved communities.
He further adds that Citi is looking at establishing further partnership with other industry players especially in the agri business sector to offer financing to offer financing to “last-mile” micro enterprises across the country.
“So areas of expanding partnerships. I look at different verticals, today it is retail, tomorrow it’s you know agribusiness. It could also be in logistics; and its really about using technology to underpin this removal of friction in the customer journey. So I think our partnership has quite a bit of scope both geographically and in different industries.”
Martin Mugambi, CEO Citi Bank Kenya
To understand how the partnership will benefit businesses, and its terms, listen to the full interview with the two CEOs below.