Micro-financier Untu Capital is set to raise $1 million from the country’s first mobile-based retail note, a move set to enhance financial inclusion.
BY BUSINESS REPORTER
The retail note, U-Gain, is targeting ordinary Zimbabweans and can be purchased via the mobile money platforms of EcoCash and Telecash, eliminating the need for investors to make transactions.
“One of the key features of U-Gain is the ability to invest using mobile money platforms, which allows everyone to participate. We are aware that there are a number of individuals in the country who don’t have a bank account, who transact using mobile money,” Clive Msipha, Untu Capital chief executive officer said.
The offer will be open to individuals, small business, corporates and other institutional investors and has a tenure of 12 months with investors earning 9% per year.
Msipha said the U-Gain notes will be listed on the Financial Securities Exchange and tradable after the offer period, allowing investors flexibility.
“The benefit of the note being listed on the stock exchange is it allows the investor to sell the note in the marketplace, which is the stock exchange, and obtain proceeds at whatever the prevailing price will be when the investor decides to sell,” he said.
