Kampala, Uganda: MTN Uganda will invest $250,000 (over UGX 487million) as seed capital to support small and medium scale entrepreneurs in Uganda via MYC4. MYC4 is an online marketplace that connects people from all over the world - with African entrepreneurs, who lack capital to develop their businesses.
The investment is a three year partnership that will target rural women in the areas of agriculture, artisanship and ICT. It will offer credit of up to €3,000 (UGX 7 million) to small and medium scale enterprises that qualify for funding throughout the country.
MYC4 is an online marketplace that provides loans to small and medium sized enterprises in 7 African countries (Kenya, Tanzania, Rwanda, Senegal, Ghana and Cote D’Ivoire and Uganda). During one and a half year, around 13,000 investors have invested €6.7million in 3,767 African businesses whereof 2045 are Ugandan.
The company was founded in May 2006 and inspired by the United Nation’s eight Millennium Development Goals (MDGs). With this great source of inspiration the vision of MYC4 is to eradicate poverty in Sub-Saharan Africa and thereby contribute to e.g. better education, health, and environmental stability. MYC4 has its headquarters in Copenhagen, Denmark, and has an IT Development Centre in Kampala, Uganda, which employees 10 people.
“This is a great opportunity for us to champion the notion of an African Company helping fellow Africans instead of the common perception that Aid should always come from “Abroad”” said van Veen, Chief Commercial Officer, MTN during the announcement and launch of the partnership at the Sheraton Kampala Hotel. The capital investment guidelines require that MTN’s loan contribution must constitute a minimum of 33 percent of the total loan required.
Under the agreement, $50,000 would be invested immediately in a six months pilot phase which is expected to shed light on how best to administer the funding. “The learning after the pilot phase will guide us on how to manage the capital repayments and their re-investment over the three year period”.
van Veen said the funding was in line with the MTN’s policy of supporting interventions that create a positive and lasting impact on the welfare of the people. “We know that the majority of our people live in rural areas and a good number of these are women who engage in small businesses. By making available this line of credit to them, we are in actual fact supporting the welfare of the whole family and by extension the community,” said van Veen.
"It is a great recognition of MYC4 as a serious tool for poverty alleviation. The overriding task for the international community is to generate 10-15 million jobs annually in Africa. MYC4 is business, not charity. In order to create long-term sustainable development in the poorest countries, it is essential to ensure access to knowledge and capital. I see Africa as a good business opportunity. Business is a crucial part of eradicating poverty, and better economic conditions will spread like rings in the water to other areas such as health, education and environment, "said Mads Kjær, CEO of MYC4
ABOUT MYC4
MYC4 is an online marketplace that connects people from all over the world – just like you and me – with African entrepreneurs, who lack capital to develop their businesses.
Our vision is a world without poverty where everyone has the same access to knowledge and capital. We believe that the source to long-term, sustainable development comes from business development and economic growth. Therefore, we want to remove barriers that keep people in poverty and facilitate a marketplace for a free flow of capital and knowledge.
MYC4 focuses on Sub-Saharan countries, since poverty is more severe here than in any other part of the world. We target small and medium sized companies (SMEs).
MyC4 A/S was founded in May 2006 as a joint venture between Mads Kjær, Kjaer Group A/S, and Tim Vang. Kjaer Group has been providing vehicles and automotive solutions to the international aid and development sector since 1962. Mads Kjær, former CEO and now Chairman of Kjaer Group, has 22 years of working experience from the African continent, has lived in Zimbabwe, Uganda and South Africa, and adds substantial insight into African business to the project. Mads Kjær is also the Honorary Consul for Ethiopia in Denmark.
For more information on MYC4, please contact Alette Pramming on +45 27 515 615 and alette@myc4.com
About the MTN GROUP
Launched in 1994, the MTN Group is a multinational telecommunications group, operating in 21 countries in Africa, Asia and the Middle East. The MTN Group is listed on the JSE Securities Exchange in South Africa under the share code: "MTN". As at 30 September 2009, MTN recorded 108,4 million subscribers across its operations in Afghanistan, Benin, Botswana, Cameroon, Cote d’Ivoire, Cyprus, Ghana, Guinea Bissau, Guinea Republic, Iran, Liberia, Nigeria, Republic of Congo (Congo Brazzaville), Rwanda, South Africa, Sudan, Swaziland, Syria, Uganda, Yemen and Zambia. The MTN Group is a global sponsor of the 2010 FIFA World Cup South Africa™ and has exclusive mobile content rights for Africa and the Middle East. Please visit www.mtn.com andwww.mtnfootball.com
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