EcoCash sells micro-finance bonds from Untu Capital

Friday 12 January 2018 | 11:31 CET | News

Zimbabwean money transfer service EcoCash has partnered a local micro-finance company to allow the public to participate in the purchase of tradeable bonds, set to raise USD 1 million in debt financing for start-ups and small businesses. EcoCash customers can purchase the bonds, issued by Untu Capital and called U-Gain, via their mobile phones from USD 50 from the Financial Securities Exchange.

EcoCash general manager Nathalie Jabangwe said the U-Gain bond, launched under the EcoCash I-nvesta range, represents a significant step in her organisation's efforts to broaden public access to financial services. Jabangwe said EcoCash had already added U-Gain to the EcoCash I-nvesta sub-menu, which customers can access under the 'Regular' payments category on the EcoCash 'Make Payments' general menu.

She said following the purchase or subscription of the issued debt instrument (or the bond) from Untu Capital, Ecocash customers had the option to trade the U-Gain bonds on the Financial Securities Exchange, and dispose of the bonds before the expiry of the twelve months. 

EcoCash's transaction volumes in 2017 accounted for close to 80 percent of all electronic settlements in Zimbabwe 

Untu Capital CEO Clive Msipha said the issuance of the U-Gain bond would contribute towards deepening the country’s debt capital markets, and would allow increased financial inclusion as the proceeds of the issuance would be used to lend to micro, small and medium-size enterprises.

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