By Jacktone Lawi
Online retailer Jumia has announced a deal that will enable SMEs access funding to expand their businesses.
The deal with mobile lender Branch, will make it possible for sellers on Jumia to access a 30,000 loan which is to be repaid within 6 months at a 1.2 percent interest rate.
However not all sellers will be eligible as sellers will be selected based on their sales history and forecasts with Jumia, the loan will then be made available on the sellers branch app account.
According to Jumia the programme will promote financial inclusion which is key to the growth of Small and medium enterprises.
“This platform will offer our sellers an opportunity to market their products as well as to get easy access to financing to support their online growth ambitions,” said Sam Chappatte the Managing Director at Jumia Kenya.
E-commerce in Kenya has been on the rise and Branch is looking to leverage on the number of growing online business to avail funding.
“Branch envisions a world where financial services are accessible anytime anywhere. The Kenyan Economy is driven by small and medium sized enterprises therefore through this partnership we will be using the power of data to unlock much needed access to credit” said Daniel Szlapak African Director for Branch.