Jumia formerly known as Africa Internet Group (AIG), is a system of online commerce, marketplaces and classifieds websites and applications kicked off in the city of Lagos in June 2012 and now the company has a presence across 23 African countries.
This well described as dominant e-commerce company in sub-Saharan Africa, is expanding the small business loan program it launched earlier this year into every country where the company operates.
In partnership and working to this goal is the San Francisco based lender Branch, this start up loan program for small businesses started out in may this year by Jumia and the loans pegged to vendors sales history with Jumia and projections for the future performance of the businesses.
For facts it is known in Kenya that sellers have gotten loans up to the tune of 30,000 Kenyan shillings estimated at about $290 and with a six month term on the loan in other to finance their businesses and an interest rate of 1.2% monthly. These loans are now made available on the Branch App in seconds and are disbursed through M-Pesa.
At the moment about two hundred (200) vendors have sent in applications for loans and received from the better version of the new program before the rush associated with the Black Friday sales, the company says.
According to the Co Chief Executive of Jumia Sacha Poignonnec; the goal of this expansion program is for the simplification of the lending processes for both small and medium sized businesses in Africa. He said “The Jumia lending program was launched with the aim of making it easier for SMEs to grow their businesses,” Poignonnec said in a statement. “We know that [small and medium-sized enterprises] on our platforms struggle to secure affordable credit from financial institutions, thereby limiting their potential to invest in their businesses and themselves.”
The company says that Jumia sellers across the continent can access credit at terms that can only go up as high as 12% per Annum and that all that is required of the sellers for the program is for sellers to fill out an online application form and Credit decisions will be made within two days.