Photo[:pymnts.com]
Fintech startup, Tala launched the piloting ‘Jijenge na Tala Rebuild Fund Business Program’ to help the hard-hit micro, small and medium-sized enterprises that is the MSMEs to build back better post-covid 19.
Ivan Mbowa who is the Managing Director at Tala East Africa said that despite being the key contributors to the country’s economic growth, MSMEs experience difficulty in accessing business credit to start, stock and grow their enterprises.
In 2020, the digital credit provider had launched a COVID-19 Rebuild Fund Initiative that saw the lender offer 0 percent interest loans to over 180 businesses offering essential services.
“We understand the pivotal role that MSMEs play to oil the wheels of our economy. They, however, remain disproportionately underfunded and with no financial assistance in most cases, we are keen to provide these enterprises with a boost to help them get back what they have lost during this and the past year” he said.
“ We have partnered with various stakeholders including Somo Project to help us deliver our promise of helping these growing businesses with the financial muscle and information they need to build back better” he further noted.
Under the program, Mbova said that the fintech startup will provide subsequent business skills training as part of the support to the business that will be part of the grant program.
Kevin Mutiso, the Digital Lenders Association of Kenya board chairman, commended Tala for rolling out the program which he said sets the pace for a good relationship between digital credit providers and small entrepreneurs.
“The future belongs to MSMEs and we need to help them position themselves for success as we hopefully begin to see an upward economic trajectory,” he said.