After facing an environment with a horrible boss during his university internship, and being wary of having to go through similar troubles for the rest of his adult life, Allan Tayebwa (32) knew that he needed to be innovative and avoid that by being his own boss.
The young businessman lost his parents at 4 years old and according to him, that is when his life started. Even as he went through school with the assistance of his relatives, his unique situation was never lost on him- even though once in a while, he would give in to temptations of the world.
While at Makerere University Business School (MUBS), he decided he would ‘invest’ his monthly upkeep of UGX200,000 by lending it out for very short periods and then feed off the interest therefrom while reinvesting the principal.
“But it all started randomly. One day, a friend of mine needed a quick UGX200,000 and I just gave it to them, for a promise of ‘small’ interest, not really because I was into business, but initially as a way of saving it, because I didn’t trust myself. Sooner than later, I realized that it is something that I could prioritize and make money out of – and that’s how I started giving out small loans,” Tayebwa recalls.
When he finished university, having graduated with a Bachelors in International Business, he decided he didn’t want a formal job like most of his peers and therefore went ahead to incorporate Goldmine Finance Ltd.
“I didn’t want the comforts that come with a set salary. I had interacted with salary earners and some told me that even after 10 years of earning, they had very little to show of their sweat. That’s what motivated me to start a business because I accepted to take my chances with business with the consolation that if I have nothing to show of my efforts after ten years, I wouldn’t think it would have been better with a salary,” Tayebwa told CEO East Africa Magazine in an interview.
That was in 2011. Today, 10 years later― 10 years of sacrifice, discipline and what Tayebwa says is setting realistic goals for himself and the business, Goldmine has grown significantly.
“Today, Goldmine Finance is a Tier IV non-deposit taking microfinance institution, regulated by the Uganda Micro-Finance Regulatory Authority and we employ 18 people. We are a microfinance company which provides financial solutions, skills and business connections,” Tayebwa proudly says.
As a bridging financier, Goldmine serves entrepreneurs, contractors, schools, importers, real estate developers, transporters, service providers, suppliers, and other viable clients. For the last 10 years, Goldmine has helped money lenders, real estate dealers, construction companies, printing and supplies businesses among others.
“To date, we have disbursed over 5,000 loans to individuals and businesses, touching an estimated 20,000 lives and more,” says Tayebwa.
“But more important than the number of loans disbursed, I pride in our ability to get money to those who need it right away. Our ability to work with SMEs, startups and individuals especially; a segment that is considered risky by the mainstream financial services sector, creating flexible financing solutions for each one of them, is perhaps our biggest contribution,” Tayebwa adds.
A meeting with Amos Wekesa and the turning point in Tayebwa’s life
He recalls in 2012, after just one year in business, his chance meeting with the self-made tourism guru and mentor, Amos Wekesa, the Great Lakes Safaris and Uganda Lodges proprietor. He says, he was greatly inspired by his zero-to-hero story.
“Deep inside, I told myself that if Wekesa could make it amidst all those obstacles in life especially poverty, I too could make it. I seized this chance meeting and moved up to him and asked him to be my mentor and he accepted without hesitation,” Tayebwa narrates.
Until today, Tayebwa still credits Amos Wekesa for imparting in him, some of the most important business and life skills that have enabled him to make the strides in business and life thus far.
Fresh from celebrating Goldmine Finance’s 10th Anniversary and armed with a Tier IV microfinance license, Tayebwa says the next destination is growth and consolidation.
Absa, ENS Africa, A&O Shearman and Nomura Advise Asahi Holdings on USD 2.3bn Acquisition of 65% Stake in EABL“We are working with our board of directors on expansion phase both in product development, as well as well as branch network,” he says, adding that his eventual dream is to create an investment bank.
“The very nature of our business is a reminder of the unique financing challenges that our innovators, SMEs and startups face. Sometimes you see a very brilliant entrepreneur with a brilliant idea that is only lacking financing- but unfortunately, with our model of financing, we can only do as much,” Tayebwa says.
“Uganda, as a developing country, doesn’t have the pleasures of the developed world where entrepreneurs are exposed to both financial literacy and long-term financing opportunities at an early age. There is a need to evolve our home-grown form of financing that is unique to our situation,” Tayebwa says.
Overcoming financial illiteracy as a foundation to wealth creation
He decries the low levels of financial literacy among the population as the biggest challenge to business. He says the biggest challenge in the loans business is the default rate which is mostly exacerbated by poor financial management on the side of clients.
“If people knew how to manage their money, they would know when they need to borrow and they would learn to prioritize loans. So, diversion of cash and poor financial management are the biggest challenges we face as a Microfinance business,” Tayebwa says.
That is why the company has chosen as its legacy project, to celebrate its 10th anniversary, to invest in financial literacy for communities within Kataza, Nakawa Division where its offices are located. Specifically, Goldmine is working with poor communities that stay along the railway line and are at risk of eviction by the Government.
“Goldmine Finance has started holding financial literacy lectures with the community and instilling a savings culture within them. We want to convince them that to save, you do not really have to be rich. Our dream is to help them build and grow a pool of money that can help them purchase their own land elsewhere when eviction notices start coming,” Tayebwa says.
His prayer to the government is to allow the community a little more time, to raise enough for relocation.
“Our vision with the Kataza Community Project is part of our larger and more ambitious goal to create one million millionaires and one thousand billionaires in Uganda in the next ten years. We do believe with financial literacy- equipping Ugandans with skills to save and invest, we can accelerate personal and household wealth creation and management,” he dreams.
About Allan Tayebwa
Allan Tayebwa is the Founder and Managing Director of Goldmine Finance. He has been at the helm of the microlender and has nurtured its growth since its inception in 2011 to date.
He attended Rukungiri Universal Primary School, St. Lawrence London College and Paris Palais and finally Makerere University Business School (MUBS) from where he graduated with a degree in International Business. He started as a lowly “money lender” while at university and developed his passion for business to set up Goldmine Finance.
He has been married for three years now. He is married to Lisa Tayebwa and has two children, a boy and a girl.
