GIF Growth, a growth-stage investment vehicle of the Global Innovation Fund, has committed $2 million to East African fintech firm 4G Capital to support its expansion and lending activities among micro and small enterprises (MSEs).

The investment is expected to accelerate 4G Capital’s efforts to reach underserved businesses across the region’s informal economy. MSEs account for more than 80% of employment in East Africa, yet many struggle to access formal credit due to limited financial records.

Founded in 2013, 4G Capital has focused on addressing this gap, disbursing more than $800 million in loans to over 755,000 clients across Kenya and Uganda. The company has issued 6.8 million loans to date and is on track to surpass $1 billion in total lending.

The new funding will be used to expand the firm’s “touch-tech” model, which combines digital lending platforms with in-person support from field officers. The approach is designed to ensure that clients not only access capital but also receive financial literacy training and business support.

Part of the investment will also support the continued development of 4G Capital’s digital infrastructure and strategic partnerships, aimed at improving service delivery and enabling more efficient scaling while maintaining its community-based engagement.

GIF Growth was established to provide flexible, catalytic debt financing to high-impact, early growth-stage businesses across Africa and Asia. The investment in 4G Capital reflects the fund’s focus on backing scalable solutions that address systemic barriers to economic opportunity. The fund channels capital from development finance institutions backed by the United States, United Kingdom, and Canada, alongside corporate partners such as Unilever.

Speaking on the investment, 4G Capital Founder and Executive Chairman Wayne Hennessy-Barrett said: “We are delighted to partner with the Global Innovation Fund. This investment provides us with the right kind of capital to scale our model sustainably and expand access to working capital and training for underserved entrepreneurs, particularly women and youth led businesses.”

The company is also considering a Series D funding round to support its next phase of digital expansion.

With the new capital, 4G Capital aims to deepen its reach in underserved markets while contributing to broader economic activity. The company estimates it has generated more than $3 billion in economic impact, underscoring the role of small businesses in East Africa’s economy.