Hormuud Telecom and GetPhone are expanding their smartphone financing programme through 15 additional branches across Jubaland, Southwest, Hirshabelle and Galmudug, after more than 2,500 smartphones were sold since the programme launched. Early repayment data also shows little difference so far between lower- and higher-scoring borrowers.
GetPhone has deliberately financed customers across a wide range of credit scores to test how closely those scores predict actual repayment. Preliminary analysis of nearly 1,700 contracts signed in August shows customers with credit scores under 500 have repaid 89.7% of amounts due, compared with 90.5% among customers scoring 650 or above.
An estimated 89% of customers in GetPhone’s August portfolio are buying their first smartphone, while nearly two-thirds are under 35. Average reported monthly household income is around $264, while the two phones currently available through the programme cost approximately $238 and $317 if bought outright, meaning either can cost around a month’s household income. SME traders and private-sector employees together account for nearly 60% of the portfolio, and women account for over 20%.