Untu Capital integrates with EcoCash
Untu Capital is a microfinance enterprise that offers the provision of loans, insurance services to small businesses and micro-entrepreneurs.
“EcoCash has partnered Untu to allow the public to participate in the purchase of tradable bonds, set to raise $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 for as little as $50 from the Financial Securities Exchange.” noted the Herald
What are bonds? In our own understanding bonds are actually the opposite of loans so example if you get a loan for $20 will you say you will pay back after 3 weeks with an interest of say $8 meaning that you will have to return the money with an addition of $8 to make it $28 so with bonds it’s you who will be paid $28 after offering a loan to someone, which makes a bond certificate of public or private indebtedness that bears interest for the buyer.
This is good news for Ecocash customers they can now purchase the bonds, issued by Untu Capital and called U-Gain via their mobile phones for as little as $50 from the Financial Securities Exchange through a 30-day period, they will be able to use their phones to buy U-Gain bonds that they will redeem after a 12-month period for a 9 percent interest, way above the interest depositors currently earn with most banks, It also provides a public platform for the investor who bought and holds U-Gain bond certificates to trade them at any time before the end of the 12 months said EcoCash general manager Nathalie Jabangwe
EcoCash general manager Nathalie Jabangwe said the U-Gain bond launched under their EcoCash I-nvesta bouquet of services.
In a statement, Untu Capital CEO Clive Msipha said U-Gain allows first-time investors a chance to invest in capital markets by breaking down barriers to access through the partnership with EcoCash, a leader in mobile financial transactions.
You can access U-Gain under the Regular payments category on the Make Payments general menu.
Ecocash being the largest Mobile Money service in Zimbabwe with a market share of 96.7% as reported by telecomms regulator.
Source: The Herald