Numida Tech Is Here To Provide Quick Loans To Ugandan Entrepreneurs

A while ago, we posted an article on whether Ugandan’s are choking up on loans. We all know that Uganda is the most entrepreneurial country in the world, and more than 68% of businesses started every year are youth led. Unfortunately, 80% of these businesses collapse before they mark their 3rd business birthday. Reasons for their collapse can be associated to many as scholars, thought leaders and experts, have pointed out in the numerous business conferences and seminars that have rocked the Pearl of Africa, but poor record keeping stands out.

Most businesses fail due to poor business recording.

Poor business record keeping is integral with poor decision making, and certainly leads to poor management of business assets. Record Keeping is a key aspect in business, when failed it will chain down businesses from enjoying loan facilities among others. It’s for this sole reason that a group of Tech gurus in the Silicon Valley based, decided to come up with Numida App.

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The Numida Tech Team at a Client Appreciation Day earlier this month

“Numida’s proprietary algorithm uses cash flow and financial management behavioural data, gathered through our app to determine an entrepreneur’s credit-worthiness, and issue an unsecured loan. By focusing on improving financial literacy for small business owners, we greatly increase their ability to manage that capital, reducing lending risks and maximizing growth”

Numida is interested in seeing  business in Uganda grow, the App can be used in;

  1. Stock Tracking: A new update feature in the app can help users track their inventory in real time, every time one enters a new transaction. A new purchase will increase stock while a sale will reduce it, and a net profit/loss will be calculated on spot.
  2. Credit & Debit Tracking: The Numida App helps users’ track their debtors and creditors with much ease. One can choose to set timely reminders on when to pay his/her creditors, and when to invoice his/her debtors in a single swipe.
  3. Profit & Loss Accounts: The App is a one-stop center for quick and easier accounting reference. One can get to see daily transaction balance, to give a net profit/loss. This can be switched from daily to monthly, to yearly and even all time, to display the net profit or loss for the business. This makes it easier for business people to relate the figures in that App to cash or bank balances.
  4. Loan: The core value of the App to business persons is accessibility to cheap, convenient and unsecured loans. It’s important to note that one can be accessed for a loan disbursement after recording their transaction on the App for just 7 days
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“We’ve grown from the application stage to disbursing over 1200 loans in the last 12 months” Claudia Lo – Credit Operations Manager, Numida.

It’s not a surprise that the Numida Team choose to establish its first offices here in Uganda, but aim to facilitate more than 22 Million Micro, Small and Media Enterprises (MSMEs), across sub-Saharan Africa which represent over $130 Billion credit opportunities.

Currently the Numida App is only available on Google Play but efforts are being made to have it on Apple Store (iPhone).

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“Numida is a very user friendly App, you don’t even need prior accounting knowledge to use it” Aisha (User)

Numida is seen as  a survivor to the issues of poor record keeping and operational capital, to most of these youth led businesses but also faces new challenges with the amendments to the Excise Duty Act that come into effect early this month.

The new taxes on Mobile Money and Social Media have been a deterrent to businesses in recent times.

The Numida App works on an algorithm that evaluates users for loans using their business transaction data, then a loan disbursement will be passed on to the user via Mobile Money or Airtel Money. The new law affected how Numida clients receive and pay back.

“Business has gone down since the Mobile Money and Social Media tax came into effect, clients don’t want to send money due to the many taxes involved, communication has also worsened since we can’t WhatsApp them as frequently as we did in the past” Aisha – Stationery Shop Owner & Numida App user

Such calls prompted Parliament to wake out of recess and come debate the controversial tax amendments two weeks ago. Unfortunately, we are yet to see fruits of the debates. A proposal came up and promised to slash the Mobile Money tax from 1% to 0.5%, the same proposal was echoed out by H.E Yoweri K. Museveni but the Telecoms, URA and UCC are yet to acknowledge this directive.

Growing a business has never been easy, from lack of capital, to poor decision making, poor national infrastructure & governance, and now unfriendly taxes to entrepreneurship, all these has been boxed up and look at the good Numida brings to the business communities. Unsecured low interest loans to supplement already existing business. This puts many entrepreneurs out of risk of losing business assets to loan sharks that tax them over 50% interest, on small monies as well as bureaucratic banks with rates of over 28%. Are you an entrepreneur looking for convenient ways to record your business transaction? Just Download the app on Google Play.

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