GIF Growth invests in 4G Capital to expand financial access for informal businesses in Kenya and Uganda.

We are proud to announce GIF Growth is investing in 4G Capital, a market-leading fintech dedicated to providing ethical financial services to micro and small enterprises (MSEs) in Kenya and Uganda. 

Bridging the credit cap for the informal economy

Small businesses are vital to local economies in East Africa, yet most remain excluded from traditional lending. Despite generating over 80% of employment in the region, the lack of formal financial records often means informal businesses are excluded from credit, halting business growth and perpetuating cycles of poverty.  4G Capital was founded to address this gap. Since 2013, the company has disbursed over $500 million  to more than 450,000 clients across Kenya and Uganda. They maintain a monthly volume of approximately 120,000 loans per month. 

The hybrid advantage

What sets 4G Capital apart is its hybrid ‘touch-tech’ model. While most fintechs focus on a digital-only approach, 4G Capital combines in-person support from local field officers with additional digital tools, recognising the need for human connection.  

By pairing financial literacy training with accessible loans, 4G Capital ensures that entrepreneurs gain the tools to build sustainable businesses, strengthen livelihoods, and generate local employment.

Empowering women

4G Capital is a major player in women's economic empowerment, with 72% of its clients being women. The company also boasts a 51% female workforce, meeting 2X criteria for women in leadership, employment, and consumption, which GIF committed to supporting in 2024. 

 GIF Investment Associate and deal lead, Dianah Irungu, said: 

“Access to finance is one of the biggest barriers facing informal businesses. Through our Growth Fund investment in 4G Capital, we are providing the resources and support needed to help the company scale its innovative ‘touch-tech’ model. 

By combining technology with personal, community-based engagement, 4G Capital is opening financial opportunities to thousands of entrepreneurs who would otherwise be excluded from the system, such as women-led and rural businesses, while creating a model that can scale inclusively across the region.”

4G Capital Founder and Chairman Wayne Hennessy-Barrett said:

“We are delighted to partner with the Global Innovation Fund. Even for a growth stage company like 4G Capital, accessing the right debt products to meet our needs remains a challenge and GIF Growth’s catalytic loan will enable 4G Capital to extend right-sized working capital and enterprise training to more of Kenya’s nano, micro and small businesses—especially women and youth-led who are often overlooked by traditional lenders. 

Together we will help these entrepreneurs protect and grow their livelihoods, create jobs and build more resilient local economies across Kenya.”

GIF Chief Investment Officer and Head of GIF Growth, Avinash Mishra said: 

“I’m thrilled with the second investment made by GIF Growth in the last few weeks. GIF Growth has been set up with the express purpose of accelerating the growth and scale of promising high impact businesses across Asia and Africa. 

By providing the right kind of capital with the right products and structure, GIF Growth can fuel businesses like 4G Capital to scale faster, demonstrate even stronger financial performance and ultimately unlock more commercial and impact capital. We’ll also seek to complement our capital with Technical Assistance and Capacity Building.” 

Scaling for the future

The technology powering 4G Capital also creates a foundation for 4G Capital’s expansion. Through enhanced digital offerings and strategic partnerships with public and private institutions, 4G Capital  is poised to grow its client base, deepen its market presence, and improve its service delivery. 

With GIF Growth’s investment, 4G Capital will scale its operations to reach even more underserved micro-enterprises. 4G Capital is the second investment from GIF Growth Fund which seeks to provide flexible debt financing to high impact and early growth companies in Africa and Asia. By supporting organisations like 4G Capital on their journey to growth and further financial stability, we will seek to unlock further equity and debt participation.