Kenya based Fintech 4G Capital has partnered with a Canadian blockchain-based securities exchange company Finhaven to roll out a fund raising scheme using cryptocurencies for financing SMEs in East Africa.
The company will issue through tokenized system an equity and debt issuance platform utilizing the Ethereum blockchain for the creation of securities.
The partnership also represents Africa’s first ever blockchain fund raising platform for microfinance.
Finhaven has announced that it relies on its proprietary coding and smart contracts to ensure that the creation, sale, and future resale of these security tokens will all be in compliance with applicable securities laws.
4G Capital is a fintech company focused on empowering businesses in East Africa with micro-financing and business training to help informal SME businesses attain sustainable growth. Partnering with Finhaven provides qualified investors with the unique opportunity to participate in the issuance using cryptocurrencies.
“Security tokens represent the future of the capital markets,” said Finhaven CEO DH Kim, “allowing companies to issue their own equity and debt tokens makes it possible for capital to flow more efficiently in global capital markets.”
He added, “By reducing transaction costs, converging intermediaries, and increasing speed of clearing and settlement, blockchain technology promotes much needed efficiency within capital markets. We are already experiencing a significant shift towards tokenized assets, a trend we expect will grow exponentially in 2018.”
4G Capital products provide 100 percent unsecured instant access credit for working capital. Loans are risk-based, rate capped and designed to ensure each client increases take-home earnings to grow their business and improve access to education, food, water and services. They work directly with individual business owners and also through vendor and distributor partnerships to provide credit lines for producers and wholesalers.
According to 4G Capital more than 92 percent of customers repay on time and over 80 percent return for repeat business, achieving high and otherwise unreachable growth rates. They are expanding now across Kenya, Rwanda and Uganda, creating a ladder of opportunity for those in most need to realize their aspirations.