MICROCAPITAL BRIEF: Untu Capital of Zimbabwe Selling $1m in Bonds in Increments of $50 via Mobile Money to Support Microfinance, SME Lending

Untu Capital, a microlender in Zimbabwe, is looking to raise up to USD 1 million to support its lending to micro-, small and medium-sized enterprises by selling “U-Gain” bonds in increments of USD 50. Individuals may buy the bonds on Zimbabwe’s Financial Securities Exchange (FINSEC) via EcoCash, the mobile money service of South Africa’s Econet Group. Although the bonds have a term of one year, bondholders may re-sell the securities before maturity via FINSEC.

Untu offers enterprise loans of USD 500 to USD 100,000 with terms of up to two years. No collateral is required for loans up to USD 5,000. In addition to loans, the institution offers business training.

Econet is a privately held firm with technology and media holdings worldwide.

Sources and Additional Resources

Telecompaper article


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