Jumia launches lending programme to support SMEs

Jumia launches lending program to aid SMEs in Africa

Jumia during an event tagged  Jumia Black Friday Vendor Launch which was held in Nairobi announced a lending programme targeted to benefit Small and Medium-sized Enterprises (SME’s) which are critical to Gross Domestic Product (GDP) growth and employment sector of any country.

The lending program was first launched in Kenya, but now have been rolled out to other Jumia markets in Nigeria, Egypt, Morocco and Ivory Coast.

According to  Jumia Managing Director, Sam Chappatte during the launch in Kenya; “Investing in SME’s is investing in Kenya’s future as they contribute close to 40 per cent to Kenya’s GDP and employ more than half the workforce population.”

The lending program is aimed at simplifying lending processes for SMEs by leveraging transactional, operational and behavioral data from the Jumia platform to provide a unique credit scoring method for the vendors who sell through the platform.

SMEs on Jumia will be able to access credit at favorable terms, with interest rates from as low as 12% per annum. Over 4,000 sellers across Kenya are gearing up to take advantage of this program.

To access the program, vendors simply follow an online application and can expect a decision within 48 hours. This experience compares favorably versus financial institutions, with complicated paperwork requirements and lengthy waiting periods for loans to be approved.