How Unifi Plans to Transform the Ugandan Unsecured Personal Loans Market

Unifi, a trailblazing pioneer in driving access to those in need of loans but without security, has marked a significant milestone with the recent opening of its tenth branch in Uganda. In just two short years since its debut in the country, Unifi has made remarkable strides in Uganda’s burgeoning financial sector. Established in Zambia in 2013, Unifi now operates in Uganda, South Africa, and Kenya, setting itself apart with its innovative approach to lending.

Amid a competitive market teeming with micro-lenders, Unifi is rewriting the playbook for traditional microfinance models, setting new benchmarks for innovation and trust within the industry. Combining cutting-edge technology with a personal touch, the company has adeptly navigated Uganda’s complex economic landscape.

Unifi Uganda commenced operations in 2021 during a challenging period marked by stringent COVID-19 lockdowns. Over the past two years, it has tackled legislative obstacles and operational challenges, including infrastructure limitations and a scarcity of readily available data.

While not the sole driver of recent legislative changes, Unifi has played a pivotal role in advocating for progressive revisions to finance regulations in Uganda. These updates, particularly concerning Tier 4 Microfinance Institutions (MFIs), are crucial steps toward fostering a more inclusive financial ecosystem in the country.

CEO Michiel Le Roux acknowledges that the Ugandan market, while less competitive than its counterparts in Kenya and South Africa, presents its unique hurdles, notably mitigating reputational risks in a sector marred by public distrust.

To address these challenges, Unifi offers Ugandans a streamlined alternative to the conventional payroll- and collateral-based loans they are accustomed to: Unsecured credit for clients with a regular income and a bank account, obtainable in as little as 20 minutes. Clients can repay their loans directly in cash or via mobile money. These innovative unsecured loans eliminate the need for a guarantor or security (collateral), thereby reducing risk for borrowers and simplifying the lending process—an approach that has resonated positively with Ugandans seeking liquidity.

Unifi clients need only visit a branch once for identity verification and fingerprint capture for Unifi’s security measures. After that, they can conduct all transactions seamlessly through Uniapp, a USSD-based mobile application.

Le Roux emphasizes that mobile money has been a transformative force in the sector, which is pivotal in enabling Unifi to deliver more favourable terms and swifter turnaround times than traditional banks. Utilizing sophisticated data architecture that enables unprecedented agility and real-time trend monitoring, Unifi is well-positioned to adapt and thrive in Uganda’s dynamic, mobile-centric financial landscape, even without comprehensive data infrastructure.

The future shines brightly for Unifi in Uganda and beyond. Le Roux remarks, “Africa is the place to be,” recognizing the continent’s abundant potential and foreseeing a prosperous economic future. Unifi’s exceptional performance and unwavering commitment to genuine impact and innovation are ushering in a new era where clients across Africa can easily and swiftly access highly affordable, straightforward personal credit.

Unifi leverages advanced data analytics and smart fintech to deliver uniquely tailored credit solutions, positioning itself as a standout player in the markets it serves. As a pioneering personal lender in Sub-Saharan Africa, the group has expanded its presence to over 50 branches across the continent, intending to simplify the lives of one million customers by 2025.