A quick scan through the daily newspapers will show you how many people are losing their businesses to financial services providers for failure to service a loan. Financial services providers usually don’t care if you made a profit or a loss on the money they gave you; they just want their money back plus the interest accrued. If you fail, they advertise and sell the collateral.
It is this unfortunate reality that partly inspired Kakande Farid Gava and four others to start Zukuka Traders Limited, a digital saving and loan product based on the Islamic banking system.
“We have two fundamentals in Islam that drive finances; Profit and Loss Sharing – this is mainly for businesses… We share the profit and loss as long as the loss is not bound to the clients. We consider the loss as natural. The second principle is interest-free loans. At Zukuka, we give loans without expecting any interest. If you take Shs 500,000, we expect the same amount on return,” Kakande, the Zukuka Chief Executive Officer, says.
On the technology side, Zukuka came to solve the problem of manual processes within Saccos because everything is digitized. Members can join using their Zukuka Mobile App, Website, and social media handles.
In the two years of operation, Zukuka has attracted more than 800 clients saving daily, weekly or monthly depending on their earnings.
“We try our best to reach about 75 million monthly in savings. For credit facilities, we give an average of 10 members monthly and expect a payback of 65 per cent in loans,” he says.
He adds that the Zukuka Mobile App allows users to track transactions in real-time. Clients can also carry out deposits on their Zukuka accounts via mobile money.
Meanwhile, Kawooya Hassan, one of the Zukuka members says it is the principle of zero interest that has impressed him most.
“I joined Zukuka Finance two years ago but I am very happy with it because of the reliable and efficient service. Our savings are safe and when you need a loan, it comes with no interest. We just have to share profits, if any,” he says, noting that even countries like Uganda are struggling to finance national budgets because of the high interest they have to pay to their creditors.
40 Days 40 FinTechs
Zukuka Finance is a fully registered Sacco under the Ministry of Trade, Industry, and Cooperatives and regulated by the Uganda Microfinance Regulatory Authority.
However, Kakande says people’s uptake of digital innovations is still a stumbling block in Uganda.
“People are illiterate about these technologies. We are trying our best to carry out training for our members. People also think technology involves a lot of fraud. For us, when a customer wants to withdraw money, we always request for a [secret] code to avoid fraud and embezzlement of funds,” he says.
He further appreciates initiatives such as 40 Days 40 FinTechs that are shining a light on emerging players in the FinTech space which is one way of building confidence among end-users.
“This initiative has helped giant companies to interact with SMEs. This has helped to build a relationship in business which eventually leads to economic growth,” he says.
Now in its fourth season, HiPipo’s 40 Days 40 FinTechs initiative has become a household name in the financial technology space of the East African region. In the last three editions, more than 100 FinTechs have been showcased, highlighting stories changing people’s lives, especially in the under-served sectors.
“This season we are happy to show the impact stories of these innovations. The likes of Zukuka are facilitating financial inclusion because we believe that in order to create realistic change, the cost of credit should be reduced significantly. And that is what Zukuka has done through their implementation of Shariah-compliant finance principles,” noted Innocent Kawooya, the CEO of HiPipo.
Zukuka Finance is participant number five in the 40 Days 40 FinTechs initiative, season four organized by HiPipo in partnership with the Level One Project, Mojaloop Foundation, INFITX, Cyberplc Academy, Ideation Corner and Crosslake Technologies and generously supported by the Bill and Melinda Gates Foundation.
One of the biggest business challenges is accountability. For instance, it is almost impossible for any organization to determine how much airtime or fuel was used by field staff in a given month. This is because the field staff usually pay out of pocket and claim the money later without proper proof.
But this is a problem that Xente, a financial technology company, is determined to end through their Visa Cards and automated online transactions.
Through a partnership with Visa, Xente is among the first FinTechs to issue both virtual and physical visa cards in Uganda. On top of this, Xente helps businesses, companies and organizations to automate company finances by providing a platform where companies are able to log on and open an account where they can make bank transfers, mobile money, airtime, and data to their teams or beneficiaries and staff.
Between 2017 and 2023, more than 1,000 businesses such as NSSF and Jumia have benefitted from these services to ease their business transactions.
‘They are able to save time and money while ensuring proper accountability,” says Lyn Tukei, the Head of Public Relations and Marketing at Xente.
‘For instance, if you have to send money to more than 1,000 people, you don’t need to walk to that mobile money agent anymore. All you need is to get onto our platform and send money to as many people as you want across various networks. This comes in handy across businesses that use a lot of time and money while making these transfers,’ she notes.
Tukei says automation helps businesses to approve every payment, track every transaction in real-time, manage money across teams, branches, and/or countries, and sync data with their accounting platforms.
How does one get Xente?
“It is very easy, just like any other bank account. It integrates what the banks and telecoms do. All you need is to log on to the Xente website and you will be able to create an account. If you are already registered, you just simply log in and see the various features that you are able to use. If you are new, they will ask for simple KYCs like the certificate of incorporation to make sure that you are a registered business. It becomes easy for you to start sending out bulk SMS, data, mobile money, airtime, and bank transfers, and issue virtual and physical visa cards. All you need is an Excel sheet of all the targeted beneficiaries. You can automate all your payments in real-time.’
40 Days 40 FinTechs
Xente is the fourth participant in Season Four 40 Days 40 FinTechs initiative that seeks to highlight the impact of FinTechs in the lives of under-served populations.
‘The 40 Days 40 FinTechs initiative has been helpful in elevating FinTech space in Uganda. There’s not so much awareness being done about FinTechs like in rural areas but this platform has amplified the message to the people,” Tukei says.
HiPipo CEO Innocent Kawooya says the past three years have seen more than 100 participating FinTechs benefit from useful tools and an introduction to the industry’s emerging technologies such as Mojaloop Open Source Software, and guidance from Level One Project foundational material.
The skills gained from this initiative cover Level One Project Principles, Instant and Inclusive Payment Systems (IIPS), inclusive finance and FinTech in general.
‘Now we want to show the real impact of these FinTechs. If you hear that Xente is serving 1000 businesses, then we can comfortably say we are on the right track,” he said, sending his appreciation to the initiative’s partners including Level One Project, Mojaloop Foundation, INFITX, Cyberplc Academy, Ideation Corner and Crosslake Technologies.
BOU Compliant.
Xente is a Bank of Uganda licensed Payments Systems Operator (PSO) in Uganda. They also have a license of Issuer of Payment Instrument, which means that Xente is licensed to issue any payment instrument such as the Xente Visa Card.
Tukei calls upon other FinTechs to get out of briefcase management and obtain formal licensing.
‘I implore all businesses especially if you are dealing in payment instruments, it comes in handy to have a compliance license in order to be trusted by stakeholders, investors, and other partners,” she says.
She further talks up the increased FinTech uptake in Uganda, calling on developers to come up with user-centric solutions targeting people at the bottom of the pyramid.
Sometime in 2016, Jean Anthony Onyait was on a study trip to Tirinyi where he met a special woman that would change the story of his life.
This woman was called Akello. She was a village hero! A hero because she was in police custody for failure to pay a loan received from a microfinance institution on behalf of members of her village farmers’ group.
She was the leader of a group of smallholder farmers. They needed money to buy farm inputs but all had no collateral. Akello had inherited some property from her late husband and she decided to use it as collateral to borrow money and give it to group members with the hope that they would use the money responsibly and manage to repay the loan.
“Her group members failed to pay and she was arrested and the property was going to be taken. Just imagine what would happen to her children,” echoes Onyait.
On hearing this sad story, Onyait intervened. Together with the team he was with, they decided to travel back to Kampala, raise as much money as possible, and return to Tirinyi to settle Akello’s debt.
And he did not stop there. He was inspired to start Akellobanker, a digital infrastructure that can be used to enable millions of smallholders and SMEs to access important and life-saving collateral-free services such as access to farm inputs and extension services on credit.
“We gave our company that name in respect of Akello. AkelloBanker means a bank for people like Akello who want to see their production and productivity increase but they do not have the resources and information that can help them,” Onyait, the AkelloBanker Chief Executive Officer, says.
Lasting impact.
Born in Tirinyi, AkelloBanker has spread wings across Uganda, impacting more than 180,000 smallholders as well as Small and Mid-size Enterprises.
“These smallholders are farmers who are toiling every day to produce what we eat while the SMEs comprise input dealers who are in the local communities with small stalls where farmers go and access inputs,” he explains.
According to Onyait, more than 700 SMEs have been empowered and they have been able to digitize their agricultural supplies to the farmers. They are also able to access credit which they are able to use for restocking their inputs.
“Every year, we have at least five transactions done by each farmer. These are about 900,000 transactions within a given period of time. We have been able to power over 20 million dollars worth of credit which has passed through the system to facilitate the farmers,” he explains.
With this digital platform, a farmer using data-driven approaches can access a loan instantly using their mobile phones. It can be via a smartphone or any basic mobile phone.
“If they cannot access cash…they should be able to access inputs on credit…,” he says.
One of the SACCOs using AkelloBanker services is LWEDE [Lwengo Development Cooperative Society] in Lwengo district.
These are mostly involved in providing financial services to coffee and poultry farmers.
“They are powering our operations through a system called Quest and it has been very effective in financial management. Even when we get technical challenges, we reach out to them and they sort it immediately,” said Charles Asiimwe, the Lwede Sacco Manager.
Farmers are happy too.
According to Elizabeth Atugonza, she has borrowed from Lwede Sacco over 10 times using her phone and the system is very user-friendly.
Further, John Matovu Ssagala, a Lwengo-based farmer and member of LWEDE noted that the platform has offered him multiple loans that have helped him remain in business.
Onyait says they are powering Saccos in every part of the country such as Hakashinyi Sacco in Mitooma-Inshaka, Bunyaruguru Development Sacco, Achila Enterprises in Eastern Uganda, Oyam DFA in Northern Uganda, among others.
“Oyam DFA is one of the biggest farmers’ organizations which not only produces grain but we have been able to link them to Makerere University where they are able to get foundation seed on credit. We are able to facilitate all that,” he explains.
40 Days 40 FinTechs.
Onyait says that some of the challenges in driving financial inclusion in Uganda include limited infrastructure (internet and device access), illiteracy on how to use these digital services, and cyber security.
He is, however, happy that initiatives such as 40 Days 40 FinTechs are coming up to try and reduce the divide between the empowered community and the people at the bottom of the pyramid.
“The 40 Days 40 FinTechs initiative is a very strong platform to bring like-minded players into one place to share ideas and devise means on how we can deepen the financial sector. Since it comes from the issue of technology or financial technology providers, we are able to learn about the past challenges that commercial banks had to go through. We have been able to learn from the telecoms. So, the efforts by the different actors definitely give us a learning platform,” he says.
Now in its fourth season, HiPipo’s 40 Days 40 FinTechs initiative has become a household name in the financial technology space of the East African region. In the last three editions, more than 100 FinTechs have been showcased, highlighting stories changing people’s lives, especially in the under-served sectors. This initiative is run by HiPipo in partnership with the Level One Project, Mojaloop Foundation, INFITX, Cyberplc Academy, Ideation Corner, and Crosslake Technologies with support from the Bill and Melinda Gates Foundation.
AkelloBanker is participant number three of the fourth season of this initiative. Innocent Kawooya, the HiPipo CEO noted that AkelloBanker is a clear example of both the life and time-saving abilities of Financial Technology.
On top of her job as a secretary at Buddo SS, Mary Caroline Nambogga is charged with the custodianship of pocket money of students at this school.
Nambogga says that this second role is actually more difficult than her primary job. First, she is not an accountant; second, some secondary school students are sharp and tricky.
“The paperwork is quite a lot. There can be shortfalls because some students can be crafty and others may not sign when they pick the money,” she explains.
In all, handling students’ pocket money in cash is a hectic affair altogether, plus, whenever students have cash, the occurrence of theft among them is very high.
However, this nightmare has recently become a thing of the past, with the introduction of Kawu smart cards at this school.
Founded in 2021, Kawu Smart Card is an automated Digital Financial Services platform that allows parents and students to conveniently manage pocket money. A parent just deposits the student’s pocket money onto the Kawu wallet and the student uses the Kawu Smart Card to make transactions while in school.
When this service was introduced at Buddo SS early this year (2023), Nambogga was installed as the Kawu Agent in this school.
“The card has come in handy not only in sorting record-keeping challenges but also waived a big load off our shoulders of being able to give pocket money to students according to the parent’s demands. In a way, this helps a parent to set a limit for their children,” Nambogga says.
Convenience, Safety.
According to the KAWU co-founder, Gerald Ssebunya, this service was built in 2021 to bring control back into the hands of parents by determining how much a child can spend at a given period.
He explains that parents just need to download the mobile application from Play Store or App Store and start sending and monitoring the expenditure of their children.
The students are happy too.
Palvin John Ndawula, a Senior One student at Buddo SS says this card has not only made it easy for his parents to send money, it also keeps his money safe!
“For example, my parents would previously give me money and I keep it in my suitcase or I leave it somewhere and they steal it. With the card, my money is safe. The card also has an account number and no one else can use it besides me. This is the best card,” he says.
“At my former school [in primary], we used to keep money with the school bursar and when you go to ask for it at the end of the term, some of the money would be misplaced. Your money is extremely safe with this card.”
Similarly, Salmah Nadia Nakabuye, also in Senior One at Buddo SS, is equally impressed.
“When I want more money, I don’t ring my mother but she looks at the App and sends money directly to my card. I would like to tell students to register and get the card because it is safe and convenient. When the card is lost, they can replace it and your money remains safe,’ she says.
Impactful.
Ssebunya notes that between 2021 and 2023, they have reached over 200 schools with 54 of them coming on board.
“We have managed to activate over 10,000 students where at least 9,000 are actively using the smart card. We also have 15,000 parents that have activated and downloaded the application,” he says.
Ssebunya explains that this service has attracted much attention because it is easy and secure.
“When activating this smart card, we take their photo, name, and parent’s phone number. Once you download and sign up using the number that the student gave us to activate their card, the App automatically links to the student’s card. A parent now has the ability to send money from their mobile money account straight to their child’s smart card. We allow them to set up a five-digit password that they use to secure their card,” he says.
The parent can monitor the child’s account through the App and be able to tell if their child needs a top-up.
Ssebunya says they plan to reach millions of students across the East African region in the next five years.
“We have a big market opportunity of over 40 million students around East Africa and in the next five years, we are looking at serving 30 per cent of this size,” he says.
At Buddo SS, the cards are so far being used by Senior One and Senior Five students but the plan is to phase out cash transactions and only accept pocket money through this card for the entire school.
Not Without Challenges.
Just like any other electronic device, the card has its shortfalls. Nambogga notes that when the number of users increases, there is always a network problem.
This is common on visitation days when many people have logged into their accounts.
Since it is still new, some parents have also not understood how to use it which necessitates Nambogga to make several calls to direct them on how to deposit the money from their mobile money accounts to the cards.
40 Days 40 FinTechs.
Kawu is participant number one in the fourth season of the 40 Days 40 FinTechs initiative, season four organised by HiPipo to showcase innovations that are enabling underserved populations to join the digital economy space. This initiative is run in partnership with the Level One Project, Mojaloop Foundation, INFITX, Cyberplc Academy, Ideation Corner, and Crosslake Technologies with support generous from the Bill and Melinda Gates Foundation.
Ssebunya confesses that Kawu’s success story is mostly because of their participation in this initiative which introduced them to the FinTech community, specifically with the mentorship of HiPipo CEO Innocent Kawooya.
On his part, Kawooya says that with such impact stories as Kawu’s, the 40 Days 40 FinTechs initiative is indeed bearing fruit.
“This year we are paying keen attention to the actual impact of each featured Innovation across East Africa. For three years, we have shone a light on marvellous innovations but now we want to see how they have benefited the intended users,” Kawooya noted.
In their paper titled “Advances in Real Time: Challenges and Solutions in Interoperable Payment Systems,” Kosta Peric, Miller Abel, and Matt Bohan discuss the complexity of dealing with cash. I refer to this paper when discussing elements like interoperability, Level One Project (L1P), and Instant Inclusive Payment Systems (IIPS) that are key to designing Digital Financial Services (DFS) for low-income users.
Finance centers around exchanging something valuable for more of what you want. For most people around the world, making payments is a fundamental financial action – whether using cash, SMS, or cards.
The choices people make while transacting are largely dictated by whether they prefer to pay with cash or use a digital payment system. In most cases, cost and convenience take precedence in making that choice. And these decisions are made quickly because the need for the service or product is immediate. Therefore, real-time payments are now a high priority for businesses and people.
Good enough, providers can now reach customers they previously couldn’t. These include people with very limited assets who are either unbanked or underserved by traditional financial services. The development of the Level One Project, an initiative to promote the creation and evolution of inclusive, interoperable digital payment platforms, is a response to such trends.
Despite the rise in digital financial services usage, an estimated 500 million adults are still financially excluded globally. Financial exclusion is majorly a result of the limited usage of open-loop, cost-effective, real-time, secure retail payments systems to connect low-income consumers to formal financial systems.
Of the 736 million people worldwide who lived on less than $1.90 a day in 2015, about 413 million were residents of sub-Saharan Africa. Several economic studies suggest that between 10 and 30% of households escape poverty in sub-Saharan Africa over a 3–10 year period. This is done by taking advantage of opportunities, such as finding a new job or starting a micro business. However, the sad fact is that a similar number of people fall back into poverty due to economic setbacks or life shocks.
Many people are more concerned with saving face than they are with ensuring a quality sustainable lifestyle. The ability to offer services that can sustain positive change in the face of shocks is key for innovators to achieve sustainability. They would help in modeling how low-income users can best access opportunities to better their own lives. At HiPipo, we have used our experience, working with global partners to develop ideas about how financial inclusion can be achieved. Digital financial services are powerful in their ability to help people transition onto formal systems and take advantage of opportunities. For example, today people can easily rely on a trusted ride-hailing service when they need one. A Boda Boda or taxi they can call with ease. Additionally, the growing number of digital transactional channels have proved efficient and meet the needs that low-income users value.
However, if we don’t address the barriers that limit sustainability and affordability, digital payments will continue to move slower than they should. Today, innovators and founders can use affordable solutions like Cloud-based services such as Azure and AWS to reach out to poor people. Most traditional transactions—especially those involving physical goods, services, or information—are still too expensive unless they can be handled digitally.
Lowering the cost of digital transactions over cash makes them more appealing, thereby creating attractive user experiences. The most efficient systems are those that provide users with high-quality, inexpensive transactions. Digital solutions improve lives and households, promote savings and confidence.
Creating simple variable cost structures that can be tailored to each user’s needs is preferable to creating a one-size-fits-all fixed structure. This is an important consideration when budgeting for the infrastructure needed to support innovators’ target users. This can eventually be distributed to thousands, millions, or even billions of transactions and users. The challenge is in finding an environment that provides the right number of users that can be served at a cost low enough to be feasible. The cost of the product you want to offer should be affordable compared to what people in traditional branches would pay.
For every user, income streams are not the same. This makes it extremely difficult to overcome the challenges associated with high transaction costs and traditional paper transactions. Over the years, it has become clearer that traditional financial services are unable to serve so many users. If more users can move into digital services, many of these challenges will be overcome. For example, Cash is accepted everywhere, but it’s often expensive to use. Transferring cash using informal couriers and lenders is also costly.
Interoperability helps mobile money services expand their reach into the merchant and bulk-payment markets. Most innovators lack the data needed to understand how to design affordable, interoperable financial products. Those that address the real issues facing low-income people. Many people are investing in learning about the behavior of poor people. These advancements are allowing many people to meet household needs in ways they never could before.
Most digital transactions do not require human intervention to complete as in traditional paper-based systems. We should provide solutions that address the economic barriers to the adoption of new technologies. We should also make sure people have enough information about these technologies. Many innovators are working to find such solutions.
The mobile phone has become an essential part of modern-day life. People are increasingly being served in bulk on the convenience of phones. These approaches are helping to build trust among low-income users. Advocates, supported by private foundations and funders are helping to spread word about financial products that can benefit those least likely to have access. We all must prioritize conversations about the best way to create solutions that work well with low-income users.
Undeniably, digitally-enabled solutions have reached people who had never been able to access such services – like poor women in some of the most remote areas on Earth.
In terms of financial infrastructure, an interoperable payment platform is one of the most important pieces. It is the point at which the daily financial actions of customers meet and rely upon holdings by providers. Such platforms are often organized on a national scale because of country-specific currencies and regulations. However, regional and international systems are also important. We see this in the EU, South African Development Community (SADC), and credit card providers like Visa or MasterCard. By doing holistic impact investment on digital infrastructure, we will see the influence of digital services on agriculture, education, and healthcare. Taking these actions will improve trust and user perception among low-income people. Investment in public-private infrastructure can have a major impact on the living conditions of poor people. Players are working with public and private sector providers to develop sustainable impact measures.
According to McKinsey, by 2025, the e-payment market is expected to reach $40 billion in revenue from domestic payments alone and process 188 billion transactions. However, Africa’s growth in e-payments will likely be uneven, depending on factors such as infrastructure readiness, regulation, and mobile penetration. To better accommodate the digital age, a few countries have made advances in their policy frameworks, electronic payment systems, and infrastructure.
A 2022 report by AfricaNenda found that nearly 30 instant payment systems operate in Africa. Most continue to be designed for use by only a few financial institutions and rely on high transaction values.
The design principles outlined in the Level One Project guide provide a valuable tool for increasing and sustaining digital financial inclusion. The Mojaloop OSS, together with the APIs and strategies inspired by distributed ledger technology, fosters a vision of an interoperable ecosystem. As such, banks, government entities, merchants, and mobile money operators can all work together to promote financial inclusion among underprivileged groups.
Interoperability will hasten innovation for real-time payments solutions in person-to-person, merchant point of sale, payroll and bulk payment transfers; multiple accounts, users and fraud monitoring. Organisations like HiPipo are known for championing digital innovation, Interoperability and Instant, Inclusive Payment Systems (IIPS) across Africa.
The HiPipo Include Everyone Program provides a platform for governments and other stakeholders, including private sector organizations, to work together to promote financial inclusion in Africa. The Program draws on experience gained, advocating for the reduction of interoperability challenges that lead to exclusion from financial services among poor and vulnerable groups. The Include Everyone Program features the implementation of the 40 Days 40 FinTechs Initiative, Women In FinTech Hackathon, Summit and Incubator; Digital Impact Awards Africa, and the Digital and Financial Inclusion Summit.
The program offers technical training on how to promote the deployment of payments systems that are secure, universal, and competitive. It supports governments by providing technical and policy advice on cutting-edge issues, promoting secure ICT deployment for sector development and strategic investment.
We also have the HiPipo Women In FinTech magazine that highlights women’s contributions to and achievements in the financial technology industry. It explores challenges facing women working in finance and tech. The magazine is part of HiPipo’s efforts to promote diversity and inclusion in the digital innovation industry. Furthermore, the magazine supports raising awareness about the significance of women in shaping the future of finance and technology. Women must be prioritized for the knowledge and tools to build successful tech initiatives, for what they do shall ultimately serve communities better.
Building an interoperable payment platform on a national or regional scale is no small accomplishment. It requires a clear focus on the ultimate objectives, effective governance and oversight, and an awareness of potential obstacles. Interoperability can be achieved by overcoming two key technological barriers namely;
Lack of an efficient clearing system in which to settle payments across different financial service providers.
Lack of a standardized method for connecting these providers to a common platform.
The L1P and its reference implementations address both of these issues. Building L1P-aligned platforms can help overcome some of the key barriers limiting full financial inclusion.
Interoperable instant and inclusive payment systems promote sustainable and inclusive economic growth. They support the transfer and receipt of low-value payments at any time, and at an exceptionally low cost that may introduce the unbanked to the formal financial system.
MTN Uganda and MTN MoMo were the biggest winners at the 2022 Digital Impact Awards Africa, with the two sister companies bagging the biggest accolade of the night; the Digital Brand of the Year – Diamond Accolade. Centenary Bank came second and took home the Gold Prize.
MTN Uganda and MTN MoMo’s overall victory ended the four years long uninterrupted banks’ dominance for this category. In 2020 and 2021, Standard Chartered Bank won Digital Brand of the year while in 2019, Stanbic Bank won Digital Brand of the Year. In 2018, it was won by Centenary Bank.
While handing over the awards to the winners, Hon. Eng. David Karubanga, the Patron of HiPipo, Member of Parliament Kigorobya County and Chairperson Committee of Physical Infrastructure at the Uganda Parliament thanked all companies that are spearheading Uganda’s digital and financial inclusion journey.
“I am happy to see the progress that the country is making on matters of digital and financial inclusion. The efforts of the government and the private sector are all contributing to this success. The Digital Impact Awards Africa continue to play a key awareness and appreciation role,” Hon Karubanga said, adding;
“I thank HiPipo and its partners for being consistent. Even in a bigger way, I congratulate all the winners and encourage them to continue innovating for the betterment of our people.”
Now in the ninth consecutive edition, the Digital Impact Awards Africa is a platform that promotes Digital Inclusion, Financial Inclusion and Cyber Security. The Awards recognize and celebrate stakeholders that are spearheading the use of digital mediums to serve communities.
The Digital Impact Awards Africa celebrate digital excellence across the continent; big or small, local or international.
The 2022 edition was part of the broader Digital and Financial Inclusion summit held at Kampala Serena Hotel on Friday 18th November.
The summit brought together C-Level executives and stakeholders that are spearheading the scaling, adoption and usage of digital and financial services across Africa. It explored strategic trends and technologies that are shaping the future of Digital, ICTs and Business. Special attention is paid to the safety of customers’ funds and security of platforms in the Digital Financial Services ecosystem.
The summit discussed Uganda’s Digital and Financial Inclusion Journey, the disruptive impact of COVID-19 on the business ecosystem and what players are doing to recover, and Financial Inclusion for the people at the bottom of the pyramid. The summit had a special panel-themed Women on the Wheels – Financial Inclusion for Women Boda Boda riders.
Both the Digital and Financial Inclusion Summit and the Digital Impact Awards Africa were presented by HiPipo in partnership with Level One Project, Mojaloop, PortX (formerly ModusBox), and Crosslake Technologies and supported by the Gates Foundation.
2022 Digital Impact Awards Africa Winners’ List.
Financial Inclusion Excellence.
Letshego Digital Mall – Gold
MTN MoMo Advance – Diamond.
Digital Banking Excellence.
Stanbic Bank – Gold.
Standard Chartered Bank – Diamond
Banking Innovation Excellence.
Craft Silicon | Mobile Banking Solution – ELMA – Gold
CenteMobile Loans| Centenary Bank – Diamond
Community/MFI Banking Innovation Excellence.
Pride Microfinance Limited – Gold
Centenary Bank – Diamond
FinTech Innovation Excellence.
Safecar by SafeBoda – Gold.
Kawu Smart Card by Kawu Uganda – Diamond
Financial Services Digital Excellence.
Comviva and Airtel Mobile Commerce Uganda Limited (AMCUL) – Silver
MTN MoMo – Gold.
Standard Chartered Bank – Diamond
Consumer Goods Digital Excellence.
Jude Color Solutions – Gold.
Jumia Uganda – Diamond
Utilities and Government Services Digital Excellence.
NSSF – Gold.
NWSC – Diamond
Technology Services Digital Excellence.
Airtel Uganda & Airtel Mobile Commerce – Gold.
MTN Uganda & MTN MoMo – Diamond
Digital Campaign Excellence.
NSSF Hi-Innovator – Gold.
Stanbic National Schools Championship – Diamond
Digital Brand of the Year.
Centenary Bank – Gold
MTN Uganda & MTN MoMo – Diamond.
Panel Discussions at the 2022 Digital and Financial Inclusion Summit.
Financial Inclusion for Women on Wheels; Women Boda Boda Riders.
The Panelists were:
Nyadoi Zurah.
Babra Brizila Asimo.
Atim Albright.
Jenifer Kia.
Angwech Dillish.
Instant and Inclusive Payment Systems (IIPS): Why are Instant and Inclusive Payment Systems (IIPS) important? How do we build National Instant and Inclusive Payments Systems?
The Panelists were:
Mercy Nekesa – Founder and CEO, Sundetails by Raining Vegetables.
Moses Rutahigwa – Head, Consumer, Private and Business Banking, Standard Chartered Bank Uganda.
Edgar Mugume – Head of Business Development, Craft Silicon
Paul Ekudu – Executive Director, Pegasus Technologies.
Winning from the Boardroom; What are C-Level Executives and Business Leaders doing to ensure that Digital and Financial Inclusion is achieved. What are they doing to bring onboard the least included groups particularly; Women, Youth, PWDs and Informal Traders?
The Panelists were:
Irene Kaggwa Sewankambo – Ag. Executive Director UCC.
Damali Ssali – Chief Programmes and Projects Officer PSFU.
Anna Nambooze – Country Director for Uganda and South Sudan, TradeMark East Africa.
Lydia Nakamya – Head, Digital Banking and Partnerships, Standard Chartered Bank.
FINANCIAL SYSTEMS FOR THE POOR: An African continent where poor people, people at the bottom of the pyramid can capture opportunities and build resilience through financial services. The Ugandan point of view!
The panelists were:
Nelson Kituuka – Managing Director, Card Pesa.
Vincent Tumwijukye – Chief Executive Officer, FutureLink Technologies.
Japhet Aritho – Managing Director, Airtel Mobile Commerce Uganda Limited.
Beatrice Mawemuko – Head Strategic Partnership, MTN Mobile Money.
Andrew Ssemaganda- General Manager Strategy, Centenary Bank.
After over a week of ideation, designing, developing, and coding, the 2022 Women in FinTech Hackathon reached its climax on Thursday 15th September with the 20 teams presenting their final minimum viable products (MVPs) to the judges.
Day five was very tense and action-packed as participants prepared for the final pitches. The 20 teams that made the final submissions were Her Duuka, Funa House Property, Tawaza Digital Varieties, Lands Resource, Oliwaa Events, Lima Pesa, Jibu, Academic Personal Assistant (APA), The Platter, Rental Pro, Sayl Kare, E-Truck Service, Insure Wallet, The Fintech Devotee, Tegeka Investment Club, Go Green, Autopay, Elevation, Sueno and Izere Education.
According to Innocent Kawooya, the HiPipo CEO, all teams met the minimum expectations of the Hackathon as they were able to have working MVPs and also integrated payment solutions from third parties.
“We have been amazed by what we have seen today. The twenty teams have really put in a lot of effort and extra hours to reach this far. From their presentations and product tests, you can clearly see great solutions,” Kawooya said, adding:
“It will be interesting to see how they move to the next steps in their products’ development. As prototypes, they are good, but then they have and in fact, must put in extra effort to complete the job at hand. We promise to continue supporting them in every way possible.”
On her part, Cleopatra Kanyunyuzi, the Hackathon Lead Facilitator and CEO of Club Tangaza noted that as a trainer, she was excited to see how the teams improved each passing day. She thanked the participants for their commitment to the hackathon and the broader women inclusion drive.
“It has been a busy week but yes, the teams have been very committed. You can see that each team has had tremendous growth compared to when they came here. On behalf of the facilitators, we wish all the teams the best for the future. Let them continue with their products even after the Hackathon,” Kanyunyuzi noted.
Now in its third edition, the Women in FinTech Hackathon is part of HiPipo’s commitment towards empowering women with the required digital and financial inclusion skills so that they can go out there; innovate, prosper, earn and develop their families and communities.
The winners of the 2022 Women in FinTech Hackathon will be unveiled on Friday 16th September at Mestil Hotel and rewarded.
“We are all set for the Women in FinTech summit, which is a culmination of the Women in FinTech Hackathon. All participants are looking forward and optimistic about winning. The top 5 teams will be announced and rewarded at the summit. Even so, all participants will take home something because they are all winners. I take this early opportunity to congratulate all of them,” Charlotte Neeza, the HiPipo FinTechs Events Manager noted.
The Women in FinTech Hackathon, Summit, and Incubator project is presented by HiPipo in partnership with Level One Project, Mojaloop, ModusBox, CyberPLC Academy, and Crosslake Technologies and generously supported by Gates Foundation.
Over the years, the financial technology industry has been male-dominated. However, a lot of effort has in the recent years been geared towards changing this, some of which is already bearing fruits.
According to Princess Shamirah Kimbugwe, the Pivot Payments founder and managing director, while gender imbalance is still a challenge, the industry has over the years matured and now prioritizes knowledge and skills.
“In comparison to other industries like banking, legal, and medicine; technology is more open, inclusive, and more welcoming. Half the time, people in technology don’t want to front their religion, tribe, race or gender,” Kimbugwe said.
She added: “Technology is about the leadership, the knowledge and skills you bring on to the table. The technology industry is about performance regardless of your gender. I have personally witnessed this transformation over the more than 14 years I have been in this industry.”
Kimbugwe revealed this while mentoring the 2022 Women in FinTech Hackathon participants. She further urged them to continue with the journeys ‘they have started because the FinTech industry is fast growing with a lot of opportunities.’
“The future of the FinTech industry is very bright. We are seeing more investment, interest from abroad, product diversity, and more homegrown products. That said, we must all agree that innovation has to work very closely with regulation,” she said.
Pivot Payments is a Bank of Uganda licensed financial technology company that is building a Pan African Neo Bank and serving export labourforce users who have typically been financially exploited or excluded. The company currently serves more than 250,000 customers and has processed more than two million transactions in less than five years.
Meanwhile, Day four of the 2022 #WomeninFinTech Hackathon activities included the 20 participating teams pitching their products, testing Mojaloop open source software, and presenting their minimum viable product (MVP) phase two. A product pitch is the process of presenting to and persuading potential investors to buy into the idea of investing in your product.
According to Mastulah Sarah Nakisozi, the Jibu Team Leader, the Hackathon has so far been a great learning experience for her and all participants.
“As a student of computer science, my skills have improved through software development, and prototype creation using different platforms. I have also improved my communication and pitching skills,” she said.
The Women in FinTech Hackathon will culminate into the Women in FinTech summit on Friday 16th September, where the best performing teams and individuals from across East Africa will be announced and receive their share of the USD 10,000 collective prize money. The best teams will also automatically qualify for the Women in FinTech Incubator program that will run until January 2023.
The Women in FinTech Hackathon, Summit, and Incubator project is presented by HiPipo in partnership with Level One Project, Mojaloop, ModusBox, CyberPLC Academy, and Crosslake Technologies and generously supported by Gates Foundation.
FinTech Uganda Limited, a subsidiary of FinTech Group is one of the oldest financial technology companies in Africa with a variety of fully integrated models that assist over 240 financial institutions across Africa to manage payments and collections, asset financing, mortgage business, and insurance premium financing, among others.
Having opened shop back in 1993, FinTech Group has mastered the art of providing technology solutions to organizations in more than 20 African countries, including supporting and implementing financial and technology solutions to over 20 banks and institutions in Uganda alone.
According to Hazel Were, a Software Engineer and Business Development Executive at FinTech Group, their experience is unmatched in providing customized digital products and solutions specific to business needs.
One such product is LeasePAC; a web-based leasing management solution that incorporates the core asset finance management modules and interfaces to third-party systems. With over 15 different but fully integrated modules, LeasePAC assists financial institutions to manage asset financing, mortgage business, insurance premium financing, factoring and discounting, stocking plan, and deposits etc.
“LeasePAC allows you to have automated collections and also eases the tracking of payments with an inbuilt accounting module,” she says.
She adds that they also have another key product named Kapilink; an end-to-end, cloud-based platform that builds an ecosystem of financiers, large corporates, and MSMEs to facilitate Supply Chain Financing and Collections in one place. It supports various working capital solutions such as invoice discounting, factoring and, dynamic discounting.
As a way of ensuring that people at bottom of the pyramid have equal access to financial services, FinTech Uganda distributes point-of-sale (POS) terminals to different financial institutions who later then re-distribute the same to low-level kind of customers.
According to Priscilla Kemigisha, the Projects Team Leader at Fintech Group, the company is implementing financial inclusion best practices such as real-time transactions, same-day settlements, and tiered KYC among others.
“As FinTech Uganda, we have systems that are able to give our customers real-time notifications. For example, the traders in URA, when they get to make payments for their goods, they are able to get real-time notifications that payments are received and it enables them clear their goods in time. We have systems that handle mobile banking, and internet banking as well,” Kemigisha says.
Kemigisha further notes that Uganda and Africa at large are headed for a fully digitized economy because automation is the way to go. She however says there is a need to address the challenge of user retention and user experiences.
“We should find solutions to the issue of user experience so that we can retain and gain more customers,” she says.
She also cites a challenge of data security and inability to adhere to government regulations but calls on FinTechs to make sure that they go through what the policies say and engage legal teams to ensure compliance.
40-Days 40-FinTechs
FinTech Uganda is participant number 38 in this year’s 40 Days 40 FinTechs initiative organized by HiPipo. The platform seeks to showcase financial technology companies that are changing lives, especially for people at the bottom of the pyramid.
“We appreciate the 40 Days 40 FinTechs initiative for enabling collaboration and networking for all tech enthusiasts. As a woman in tech, I appreciate the women inclusion aspect, especially in the Hackathons,” Hazel Were says.
The 40 Days 40 FinTechs initiative is run by HiPipo in partnership with the Level One Project, Mojaloop, ModusBox, and Crosslake Technologies and supported by the Gates Foundation.
According to HiPipo CEO, Innocent Kawooya, FinTech Uganda is among the ‘legends of the game’ and their participation is crucial for emerging FinTechs to pick some lessons.
“This initiative provides a blend of the old and the new. FinTech Uganda has worked with some of the biggest financial institutions in this country. Startups have a lot to learn from them,” Kawooya said.
The #40Days40FinTechs platform is run under HiPipo’s Include Everyone program that also encompasses other initiatives such as FinTech Landscape Exhibition, Women in FinTech Hackathon, Summit & Incubator, and the Digital and Financial Inclusion Summit and Digital Impact Awards Africa.
The platform aptly provides a setting for the various players and stakeholders involved in digital and financial technology to exhibit their products & services and also share their ideas on how more people, especially those unserved and underserved by the present financial systems, can be brought into the fold. It also offers participants useful tools and an introduction to the industry’s emerging technologies, such as Mojaloop Open Source Software, and guidance from Level One Project foundational material. The skills gained from this initiative cover Level One Project Principles, Instant and, Inclusive Payment Systems (IIPS), Inclusive Finance and FinTech in general.
With the worsening economic situation in the country, on top of the effects of the Covid-19 pandemic, most Ugandans have resorted to seeking short-term loans from friends and family to make ends meet.
But this is an unsustainable scenario because even those friends are struggling too, trying hard to survive with the little they have.
And that is where JUMO World comes in, to facilitate digital quick loans and mitigate the financial burden one would impose on their immediate circle.
Since 2017, JUMO World has been acting as an integrator for Uganda’s top telecoms Airtel and MTN to provide soft loans and saving platforms for Ugandans. To date, more than 2.6 million subscribers have benefitted from Airtel Uganda’s Wewole and MTN’s MoSente platforms.
On the 9th Day of the 2022 40 Days 40 FinTechs initiative, Season 3, we speak to Wilfred Wabwire, the JUMO World Country Manager for Uganda. Below is what he has to say.
QN: What is JUMO and what do you do?
ANS: JUMO is the market-leading banking as a service platform, enabling real-time access to funds at the lowest possible operating cost. Integrating into JUMO’s platform enables our partners to offer loans, savings and a wide range of financial choices to a new group of customers.
QN: How is your Wewole Product in partnership with Airtel Money performing? How did COVID-19 affect it?
ANS: JUMO has been offering Wewole loans in partnership with Airtel Uganda since 2017. The product is available on Airtel Money by dialing *185#, select option 8 for Wewole and follow the prompts. Covid-19 impacted people’s lives in ways previously unimagined. In response to the pandemic, JUMO World Uganda, implemented several initiatives to minimize the impact of covid-19 on borrowers including waiving the late payment fee given the situation at that time.
In terms of performance, Wewole Loan product has been used by over 2.5 million unique customers since its inception. This year to date, we have disbursed loans worth UGX 32 billion. In April 2022, we opened-up the Wewole product to new eligible Airtel money customers. Customers can borrow between as UGX 3,000 – UGX 1,000,00 and Customers with good repayment behavior gradually qualify for incrementally larger amounts.
QN: You recently launched MoSente with MTN Mobile Money. Congratulations! Tell us more about MoSente. What it is, how it works and everything else your clients ought to know.
ANS: MoSente is a convenient way for MTN MoMo customers to access credit services. Customers can borrow from as low as UGX 3, 000 and can chose either 14 days or 30 days to repay back the loan depending on their preferred loan term. To access Mosente loans, a customer simply dials *165*5*5# and follow the prompts. Money is instantly deposited in the customers MoMo wallet. To qualify for higher loan amounts, customers need to repay their MoSente loans on time, every time and keep using MTN MoMo account.
QN:What has been the impact of your credit products to the people of Uganda since you launched? How much cumulative credit have you given out on both Wewole and MoSente? How many borrowers are on both platforms? Etc.
ANS: JUMO World Uganda has collectively served about 2.65 million unique customers on both MoSente and Wewole since inception. This year to date, we have disbursed loans worth UGX 55 billion. A borrower shared with us that he “no longer looks for someone to borrow money from because they are using our service”. Another one said that he ‘used the first JUMO loan to pay school fees; he used the next loan for farming, and harvested much which helped him greatly to improve his house hold income”. These are some of the examples of the real positive impact our loans are having on the people of Uganda.
QN: What is JUMO doing to enhance Women Financial Inclusion? How are you supporting start-ups and informal businesses?
ANS: One third of JUMO borrowers are Women. For every ten borrowers on the JUMO Platform, six are MSMEs. One of our female borrowers, shared with us that “her life had improved with JUMO loans, by harvesting more on her farm and being able to pay her workers.”
Eligible Customers who are either starting up or in informal businesses can access MoSente Loan on MTN MoMo menu or Wewole loan on Airtel Money Menu. Customers simply need to frequently use their Mobile money wallets and register for the services.
JUMO through our Wewole Agent loan also offers access to unsecured Credit facilities to Airtel Money Agents to enable them to manage their float and serve their customers. Agents can borrow between UGX 10,000 and UGX 1, 600, 000 and repay back in 30 days.
QN: As a big player in FINTECH, is JUMO implementing Level One Project Principles such as Tiered KYC, Accessibility on Low-Quality Devices, Same Day Settlement and Real-Time Payments?
ANS: JUMO loans can be accessed on any type of mobile phone including feature phones and on qualifying and applying for a loan, customers get the funds instantly. Similarly, when a customer settles their loan, the transaction is processed in real-time 24/7 and the loan is cleared there and then.
QN: In your opinion, what is the state of Uganda’s FinTech industry?
ANS: The number of Fintechs in Uganda has been steadily growing from a handful to approximately 70 to-date. Events such as 40Days40FinTechs and Fintech conferences have enabled FinTechs to be seen and heard. Regulatory developments such as the National Payments Systems Act, Data Protection Act amongst others have further helped to streamline and formalize the industry. However, there is still opportunity to attract more funding, customer advocacy, and diversifying into more sectors including RegTech, Buy now Pay later, Savings and Budgeting solutions.
QN: Knowing the issues facing the FINTECH Industry, what role does the 40 Days 40 FinTechs initiative play in shaping the industry?
ANS: The 40Days40FinTechs initiate has given Fintechs a platform to showcase how their solutions are transforming livelihoods as well as the contribution of FinTech towards economic development. 40Days40Fintechs is also creating the much-needed awareness in the industry and ultimately driving usage/utilization of the innovations by the end-users as well as attracting funding/investment in the FinTech space.
40-Days 40-FinTechs
Now in its third edition, #40Days40FinTechs has quickly grown into one of the world’s premier showcase events for the innovations that are enabling ever more people to join the digital economy space.
That is surely going to remain the case, in large part due to the inspiration and collaboration that our partners Level One Project, Mojaloop, ModusBox, and Crosslake Technologies generate, but mostly because of the continuing generous support of the Gates Foundation.
Digital Innovators and FinTechs around East Africa should be more eager to embrace 40 Days 40 FinTechs as Season three covers physical destinations in Uganda, Kenya, Tanzania, Burundi and Rwanda.
Run under HiPipo’s Include Everyone program that also encompasses other initiatives such as FinTech Landscape Exhibition, Women in FinTech Hackathon, Summit & Incubator and the Digital and Financial Inclusion Summit and Digital Impact Awards Africa; the #40Days40FinTechs platform aptly provides a setting for the various players and stakeholders involved in digital and financial technology to exhibit their products & Services and also share their ideas on how more of us, especially those unserved and underserved by the present financial systems, can be brought into the fold.
The 40 Days 40 FinTechs initiative offers participants useful tools and an introduction to the industry’s emerging technologies, such as Mojaloop Open Source Software, and guidance from Level One Project foundational material. The skills gained from this initiative cover Level One Project Principles, Instant and Inclusive Payment Systems (IIPS), Inclusive Finance and FinTech in general.
HiPipo CEO Innocent Kawooya appreciated Jumo as one of the top FinTechs in the country changing millions of lives.
“It is very promising to hear that Jumo has disbursed over Shs 50bn in soft loans to both individuals and businesses. It shows an improving trend of use of digital financial services in the country,” he said.
Kawooya added that this year’s edition will cement the achievements of the previous editions – where over 60 FinTechs have been transformed – but also build on them to leverage digital financial inclusion in East Africa and beyond. “As HiPipo, our extensive effort and advocacy is partly for the intention of championing digital innovation and interoperable instant and inclusive payment systems (IIPS) in Africa to a point where our innovators enjoy and achieve sound profit margins to help them keep designing and deploying affordable and inclusive financial services for the poor,” he said.
