Sseguku has created a platform that can connect Danish lenders with small businesses in Uganda to create financial inclusion for these companies with the use of cloud-based technologies and mobile money.
The vast majority of small businesses in Uganda do not have the opportunity to borrow from the bank for the establishment and operation of their business. Therefore, the opportunities for development and employment that are necessary to create good living conditions in the country are not created. Microloans are a proven method to remedy this problem. There are others than Sseguku that provide microloans in Uganda, but the need is far greater than the supply.
In Denmark, there are opportunities to make contributions to aid organizations and also opportunities to invest sustainably through investment associations, but no other options than Sseguku to provide loans to specific companies and with the opportunity for returns to the lender.
Sseguku solves the challenges both in Uganda and in Denmark by establishing a peer-to-peer lending platform where Danish lenders can help finance loans to specific companies identified and assessed by Sseguku's subsidiary in Uganda. The subsidiary in Uganda also helps to manage the repayments from the borrowers and with debt recovery.
There are no other companies in Denmark with the same offer for Danish lenders. Sseguku has permission from the Danish FSA in accordance with the Payments Act, §51.
Sseguku is established, registered and has the necessary permits in both Denmark and Uganda. In Uganda, Sseguku is represented by its Ugandan subsidiary.
Sseguku has developed an integrated platform based on cloud technology that includes both the website that lenders use for lending and for information and the management solution used by Sseguku's subsidiary in Uganda to set up loans and manage repayments. The administration solution integrates with the mobile companies' mobile money platforms and with Sseguku's bank accounts.
Sseguku has established a financial infrastructure that enables transfers between bank accounts in Denmark and in Uganda, and transfers in Uganda between the bank and the borrowers' mobile money.
Sseguku created a network in Uganda in collaboration with an accountant, a lawyer and a number of actors in microfinance and aid organizations. Among other things, Sseguku, in collaboration with DanChurchAid (DCA), has investigated the possibilities of utilizing Sseguku's platform in connection with offering microloans to refugees in camps run by DCA.
The two founders: Kiyingi Yekosofaati and Hans Henrik Hammerum have a long-standing friendship that stretches back to the end of the last century. They have both, though in different ways, been deeply involved in microfinance and in developing countries in Africa. Kiyingi through employment in different microfinance institutions in Uganda and Hans Henrik through extensive investments in microloans through a previously similar platform, MyC4, which has existed in Denmark until 2014. Both have also been involved in development activities run by NGOs. Both are driven by a strong will to create financial inclusion and opportunities for low-income groups in Uganda and elsewhere it has value.
When circumstances made it possible at the beginning of 2017, the interest gained concrete content and Sseguku was registered first in Denmark and then in Uganda.
The most important activity since then has been to obtain permission from the Danish FSA to operate the website aimed at Danish lenders.
The first loans were given in November 2018 with funds from the founders and their network and the organization in Uganda has provided loans since with the funds that have been available.
The platform is not yet immediately ready to receive contributions from lenders, as some development activities are still pending. We anticipate that the launch and marketing of the platform may begin in early 2021.