4G Capital, the East African fintech, continues to scale its lending operations within the informal economy after securing a $2 million (R37 million) investment.
The funding, provided by the returnable capital vehicle GIF Growth, will be used to broaden lending operations in underserved communities across Kenya and Uganda.
The investment comes as the company is on track to surpass $1 billion in total lending, having already disbursed over $800 million across 6.8 million loans since its inception in 2013.
The partnership aims to solve a systemic barrier in East Africa, where Micro and Small Enterprises account for more than 80% of employment but remain excluded from formal banking.
This exclusion is primarily driven by a lack of traditional financial records and collateral among informal traders, according to 4G Capital and GIF Growth.
By backing 4G Capital’s community-based engagement strategy, the fund aims to address a massive credit deficit that currently caps regional economic growth.
4G Capital utilises a proprietary "touch-tech" model. The company said unlike standard digital lenders that rely solely on automated algorithms, its hybrid approach combines digital platforms with high-touch human interaction.
Local field officers provide in-person support and mandatory financial literacy training to the 755,000 clients the firm serves.
Wayne Hennessy-Barrett, founder and executive chairman of 4G Capital, said the partnership provides the "catalytic" capital needed to scale the model sustainably.
He went to say the fresh injection of funds will be used to strengthen the company’s digital infrastructure and expand its reach to underserved entrepreneurs, with a specific focus on women and youth-led businesses.
The fintech, which was named Best Fintech at the African Banker Awards 2025, also confirmed it is exploring a Series D funding round in the near future to support its next phase of continental expansion.
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