Category: Women In FinTech

Our Reporter.  

One of the biggest bottlenecks of transferring funds from one country to another is the cost involved, especially if it involves different networks.

It is a problem that MFS Africa; a digital payments hub, is keen on mitigating by providing access to a world of innovative, simple, convenient, secure, affordable, and compliant mobile financial solutions for all.

It connects senders, recipients, and service providers across Africa’s fast-growing yet fragmented mobile payments ecosystem through the establishment of; access to speed and efficiency, access to the global digital economy, access to new options, access to new markets and new customers, access to scale, access to security, and access to endless opportunities among others.

According to Doreen Lukandwa, the VP Global Enterprise at MFS Africa, thisborderless hub acts as a one-stop center for any individual, business, or organization that wants to send or collect money from and to their final consumer in at least 34 African countries.

“The vision for MFS Africa is to make borders matter less. It is not enough to say that we can provide mobile money to people to be able to send money to a family member in Ethiopia, but it is to say that we can provide different sectors with these different solutions that we have within a single hub,” Lukandwa says.

For example, if you are a Ugandan business with a shop on Instagram, if you want a market from a consumer in Arua, you just have to promote the product on Instagram, connect through MFS Africa and you will be able to collect your payment through any of the mobile money networks in the country. So, the customer in Arua can select the item they want on Instagram, make a mobile money payment directly to you and then organize to deliver the paid-for product.  

Lukandwa says one of the most powerful components of this platform is interoperability, backed by solid infrastructure that enables people to send money to anyone across the world through partners like WorldRemit.

“The fact that we are connected with over 180 telecoms, banks, and money transfer organizations, means that we are facilitating safe, affordable interoperability. For example, if I am a business in Uganda and I have to pay my staff in Kenya, our platform will actually confirm who the account holder is in Kenya,” she says, adding;

“But also in Uganda if you are paying somebody, our system will actually validate if the person you are paying is the right one. In that regard, we are de-risking payments; we are making it more affordable because of the interoperable capability.”

Lukandwa further notes that the Ugandan FinTech industry has shown significant growth with initiatives that seek to address day-to-day challenges.  

“Rocket Health is addressing healthcare challenges; HiPipo is expanding and accelerating technical capabilities among Women in FinTech; SafeBoda is digitizing transportation, etc. The impact is not limited to just what we see here,” she said.

MFS Africa is the 32 (thirty-second) participant in this year’s 40 Days 40 FinTechs initiative that is showcasing evolving FinTechs fostering financial inclusion, especially for the people at the bottom of the pyramid.

Innocent Kawooya, the HiPipo CEO says the job being done by MFS Africa points to the right path in fulfilling the tenets of the broader Include Everyone program.

“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, and MFS Africa is doing just that. We hope they continue designing and deploying affordable and inclusive financial services that serve the rich and the poor,” Kawooya said.

First launched in 2020, the 40 Days 40 FinTechs initiative is a 40-days event that shines a spotlight on emerging FinTechs with unique stories. It provides a setting for the various players and stakeholders involved in digital and financial technology to exhibit their products and services and also share their ideas on how more people, especially those un-served and underserved by the present financial systems can be brought on board, with emphasis on interoperability.

Run under HiPipo’s Include Everyone program, the initiative offers FinTechs useful tools and an introduction to the industry’s latest 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.

Our Reporter.

Agriculture remains Uganda’s top employer, with more than 60 percent of the population involved in agricultural activities. Despite this statistic, the industry is largely underfunded, many farm inputs are counterfeited and there is little support for harvest handling and agro marketing.

By and large, Ugandan farmers are on their own, living at the mercy of middlemen that determine market prices for both farm inputs and produce.

It is these challenges that attract non-government players to chip in with innovative ways of empowering rural farmers. One such player is EzyAgric; an AgriTech and Financial Technology company that has digitized agricultural value chains to provide better production, marketing and financial services to farmers.

“Our mission is to provide end-to-end solutions to farmers so that they have a system that offers digital solutions for planning, extension services, access to affordable credit, and linkages to markets,” says Mercy Angela Nantongo, the EzyAgric Product Manager.

Established in 2015, EzyAgric also offers farmers with periodic weather updates, veterinary information, extension services and connects them to financial institutions for cheap credit.

HOW IT WORKS.

A farmer with a smartphone needs to download the EzyAgric mobile application, sign-in and get a code that they use to access the EzyAgric system for free. Someone without a smartphone can either visit the EzyAgric website or use a USSD code and put in a crop of their choice to get periodic updates.

“When you use either of those channels to access EzyAgric, you can freely access information about agricultural inputs and services. We tell you about vaccines, pesticides, and herbicides. You can request vet visits, soil testing information or market linkages,” she says.

As part of value addition, the platform also provides farm management skills where farmers are given virtual record books to track their income and expenditure. With extension services, farmers receive agronomical information on all crops and animals and it guides them step by step over the season.

“When harvest time comes, we have the agricultural market where the farmer is asked to take a photo of their produce, put price and quantity. We then forward to our produce buyers who contact the farmer and they transact,” Nantongo says.

Since 2015, Nantongo notes, EzyAgric has impacted roughly 300,000 farmers and facilitates transactions worth millions of dollars per season. According to Nantongo, of the 10,000 monthly active users of EzyAgric platform, over 80 percent are women, which has greatly contributed to promotion of women financial inclusion.

To bring services closer to the under-served, Nantongo says they have even initiated an agent-based system where in every village or sub-county, people who don’t have access to a smartphone can get an agent who can register more than 100 farmers to access agricultural information.

The agent manages the group, can place orders for inputs, manage record books and receive market information.

 “We also partner with Airtel where you dial a short code and chose the crop of your choice and on a weekly basis get information from us on how to take care of the crop. And when we have buyers for that crop, we send you a message. This specific product has attracted more than 30,000 subscribers from all over Uganda using the product in all languages,” Nantongo says.

FinTech in Uganda

Nantongo notes there is still a big challenge in uptake of digital solutions by most farmers and people at the bottom of the pyramid, with the majority reluctant to trust FinTechs because of lack of physical interactions and the perceived dangers of using of digital money.

EzyAgric is the 30^th participant in this year’s 40 Days 40 FinTechs initiative. Organised by HiPipo with generous support from the Bill and Melinda Gates Foundation, that initiative seeks to shine a light on emerging Financial Technology companies that are transforming lives through advancing of financial inclusion to the underserved communities.

HiPipo CEO, Innocent Kawooya paid tribute to EzyAgric as being one of Uganda’s FinTechs with maximum impact.

“Majority of Uganda’s population is somehow involved in agriculture. We are glad that EzyAgric is helping create a value chain between the farmer and the market which will go a long way in creating an agrarian ecosystem. Inputs and markets are always a huge challenge for farmers. It is very encouraging that organizations like EzyAgric have come in to address this and more,” he said.

The #40Days40FinTechs initiative is run under HiPipo’s Include Everyone program in partnership with Crosslake Technologies, ModusBox and Mojaloop Foundation, and is generously sponsored by the Gates Foundation.

It 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 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.

Our Reporter.

One of the main reasons for the early collapse of villages Saccos and Investment groups is poor book keeping. Hell breaks loose whenever the Sacco treasurer loses or conveniently misplaces the company ledger which in turn means there is no track of members’ savings, loans, etc.

To save such groups from the mayhem that arises out of these scenarios, Kanzu Code, a software development company and FinTech, introduced Kanzu Banking; an online solution that eases financial management.

According to Peter Kakoma, the CEO of Kanzu Code, this platform helps these institutions to manage finances seamlessly in a simple, easy-to-use interface that makes it very possible for them to be evaluated on their viability as entities to invest in.

“More importantly, it increases chances of getting credit from an external institution because if they come in and want to verify your records, you don’t need to pull out a stack of books,” Kakoma says.

Kanzu Code is a technology company that builds inclusive financial solutions for businesses and communities both locally and internationally. For over eight years, they have built customized solutions, websites, mobile applications and enhanced platforms for big organizations such as MTN and NSSF.

“We have served 100 customers in various parts of the world. A substantial percentage of those, over 80 per cent, have been in the US. Locally, with our Kanzu Banking, we are currently serving over 2,000 end users on our platform. Though, right now we are in the process of onboarding over 500 Saccos through a partnership we have with a local bank. So, we are going all over the country and doing that onboarding,” Kakoma explains.

He notes that their current flagship product of Kanzu banking seeks to help women and youths because this is the segment mostly involved in the unbanked micro businesses, constituting more than 60 per cent of village Saccos.

“Many of these women don’t have the profile that would allow them to get credit from traditional financial institutions yet they are five times more likely to get a loan from a Sacco or a village loan and saving scheme to help their business and boost income at home,” he says.

“If you are in an investment club, a Sacco, or money lending business, you need a platform like ours to take you from where you are to the next level in managing your financial portfolio and just make it easy to run that entire entity.”

However, while Kanzu Banking makes it extremely easy for a common person to join, they require some information before one accesses certain credit facilities – following the Know Your Customer (KYC) principles.

But the most important advantage is that they offer same-day settlements.

“Prior to using a platform like ours, you would have challenges where you apply for a facility and takes a bit of time before you can get access to it. So, our system has made such aspects like same day settlements possible,” he says, noting that delays may usually arise if a given Sacco does not have the float to dispense to a loan applicant.

State of Uganda’s FinTech Industry.

Kakoma says that although there are certain steps taken, Uganda’s FinTech industry is still in its infancy.

“There are still areas that have not been digitized like the savings space that will allow people to earn an interest and make micro savings. Even in the lending space, it still has areas that can be explored. You can also look at the insurance space where micro insurance opportunities have not been explored to the extreme. If you are to look down much further or higher at the crypto space and Web 3 technologies – I think these are also other spaces that offer opportunity because it brings in lower costs, decentralization, etc.,” he says.

The high cost of internet and limited reach, according to Kakoma, remains a huge challenge on top of the regulatory issues.

Kanzu Code is participant number 26^th in the 2022 40 Days 40 FinTechs initiative. Kakoma appreciates this initiative and opportunity presented by HiPipo and its partners, noting that through the 40 Days 40 Fintechs initiative, a spotlight is shone on the FinTech Industry and Financial Inclusion in general.

“As these stories are shared, people relate with them and appreciate the power of technology. The more we can make those dots to connect, we can see the benefit of technology beyond the social media aspects of WhatsApp,” he says, before welcoming the idea of making the 40 Days 40 FinTechs initiative regional.

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 of us, 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.

HiPipo CEO Innocent Kawooya says this year’s edition is cementing the successes of the previous editions – where over 60 FinTechs have been transformed – but also building on them to leverage digital financial inclusion in East Africa and beyond.

Our Reporter.

In 2021, Flutterwave received worldwide recognition for becoming an African FinTech Unicorn. By definition, a unicorn company is a startup with a valuation of over USD 1 billion.

Founded in 2016 in Nigeria, Flutterwave has since grown into a global Fintech company that provides an interoperable payment infrastructure for global merchants and payment service providers. According to a report by Aljazeera, Flutterwave has processed transactions valued at more than USD 16 billion in dozens of African countries.

We recently had a chat with Arnold Kwesiga, the Flutterwave Country Operations and Partnerships Manager for Uganda. Below is what he had to say on how this organization is enhancing Financial Inclusion, empowering Women, and supporting Businesses.

QN: To those watching you for the first time, what is Flutterwave and what do you do? 

ANS: Flutterwave is a FinTech company that provides a payment infrastructure for global merchants and payment service providers. We provide a one-stop platform for businesses to be able to receive/make payments through various avenues such as mobile money, and cards (debit and credit). 

Our primary goal is to create endless possibilities through payments for businesses globally but with a special focus to grow in the African continent. 

QN: For the time you have been in business, how do your numbers look like?

ANS: We look at our numbers from a global view. Since our inception, we have processed over 200M transactions worth over USD 16B to date and serve more than 900,000 businesses including customers like Uber, Netflix, Flywire, Booking.com, etc. Uganda contributes to these numbers as it’s a key market for Flutterwave and we are working to ensure we support more businesses in the country including those expanding here.

QN: As a FinTech unicorn, what are you doing to enhance Women’s Financial Inclusion considering that women remain the least included? 

ANS: Women are a key part of Flutterwave and our products ensure more access to digital financial services for women to drive their businesses and growth. We work with partners like the UNCDF and most recently ​​women in Tech Uganda (WITU)to discuss how we can partner and drive initiatives that strengthen women’s financial and digital literacy.

QN: As an entity actively involved in the FinTech space, are you implementing Level One Project Principles which are Industry Best Practices such as Tiered KYC, Low-Cost User Devices, Real-time/Immediate funds transfer, Same-day settlement, Pricing Transparency and Irrevocability?

ANS: By virtue of the fact that we partner with multiple service providers, from banks to telcos and aggregators, we are limited in what we can do despite the ambition.

Ultimately the call is to always ensure that our merchants experience no inconveniences, which might include ensuring that they are settled at the earliest possible time. Notwithstanding, in our quest to address the pain points of our customers we do not compromise on adhering to the regulations that govern treating customers fairly or the duty of due diligence for example minimum KYC requirements & pricing transparency. 

QN: What is the state of Uganda’s Fintech industry? Where are the opportunities and which are the challenges? 

ANS: Globally, Uganda ranks 172^nd on Gross National Income (GNI) and 116^th on the Network Readiness Index (NRI) according to the World Bank and the Portulans Institute, respectively.

The main driver of this is influenced by the 49 percent mobile penetration and 16 percent smart phone adoption which is higher than that of Rwanda and or South Africa.

A key driver for Uganda’s inclusion in the digital economy is mobile money which unlike other digital economies does not require smartphone penetration. As such, we as Fintechs due to our agility are making strides towards increasing this digital transformation scope knowing full well the perceptions of our target audience, but without compromising on the need to harness the potential to do the futuristic stuff. 

Among the key opportunities is the fact that a large portion of traders and consumers is still cash-driven. Working to have digital wallets is the next horizon for e-commerce players.

Secondly, the COVID-19 pandemic led to an uptake of cashless services; however the general decline in economic growth means that the increased adoption has not fully translated into commercial gains. 

That said, the KYC process remains a big challenge for Fintechs. The government has an opportunity to use the national registries to provide data points for Fintechs to carry out KYC checks that will match the generally accepted standards without compromising the ease of onboarding for the day-to-day customer.

QN: In your opinion, how does the 40 Days 40 Fintechs initiative support the industry? What else needs to be done?

ANS: There is no doubt that the 40 Days 40 FinTechs initiative brings together like-minded digital finance practitioners from all walks of life to share experiences, synergies, and most importantly opportunities for interoperability. 

All other stakeholders, (the regulator, UCC, NITA) need to be drawn into the conversation (initiative) to understand the bottlenecks of the Fintechs and commit in their respective jurisdictions to address or ease entry, existence, and prosperity as we all play a vital role in the digital mission of the country.

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. It is organized by HiPipo in partnership with Level One Project, Mojaloop, ModusBox, and Crosslake Technologies and generously supported by the Gates Foundation.

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.

According to HiPipo CEO, Innocent Kawooya, this year’s edition is cementing the achievements of the previous editions – where over 60 FinTechs have been transformed – but also building on them to leverage digital financial inclusion in East Africa and beyond.

“40 Days 40 FinTechs initiative is bringing together DFSPs and stakeholders (including regulators and development partners) to drive discussions on building instant and inclusive payment systems that will solve the most emerging challenges that limit low-income users from onboarding onto formal financial platforms,” Kawooya said, adding; . “Thanks to initiatives like 40 Days 40 FinTechs and Level One Project among others, DFSPs, and FinTech stakeholders across Africa will soon gain access to fully functional IIPS regulatory sandboxes to prototype, build and test innovative digital products while evaluating Mojaloop technology with the aim of solving data/infrastructure localization government regulations and directives.”

Our Reporter.

Many Ugandan traders in the informal sector have been shut out of digital and financial inclusion drives because of their lack of required knowledge, devices and paperwork to register their businesses. In the end, boda boda riders, charcoal traders, tomato sellers, salon operators, etc., remain stuck in the cash economy with all its risks and inconveniences.

This is a problem that Airtel Mobile Commerce has spent the last few months trying to solve, and with tangible progress.

According to Japhet ARITHO, the Managing Director Airtel Mobile Commerce Uganda Limited (AMCUL), thousands of informal traders have been on-boarded to a digital payments system without necessarily having to register as a business. The trick is in enabling a separation between personal transactions and business transactions such that the trader can accept payment on their personal phone, but the money moves into a different account. This is all possible through a product named Airtel Micro Merchant.

“Traders get the Airtel Micro Merchant account without doing any documentation; you can actually do it in the comfort of your business or home, by dialing *185*10*10# and you are able to enter the business name and Airtel Money pin and then get a merchant code,” Aritho says.

It is this pin that these traders give to clients to make payments. This, he says, has greatly reduced the risk of scammers because the mobile number of the recipient/trader is no longer required.

When a trader receives payment, the money moves to their business wallet which they can easily access and transfer it to their personal line at no cost.

“You can as well pay another businessperson at no additional cost. You can also transfer to the bank, withdraw it from an Airtel agent [we have over 140,000 agents out there]. This withdrawal will attract the normal charges,” he adds.

Aritho is optimistic that the Airtel Micro Merchant platform will play a significant role in digitizing payments in the informal sector where most mobile service providers fear to venture.

FinTech, Savings and Loans.

Airtel Mobile Commerce is a now a registered FinTech regulated by the bank of Uganda and offering various products in collections, savings, credit, payments and transfers in partnership with other financial service providers.

One unique product is Wewole, implemented in partnership with Jumo World. Arithosays Wewole has been one of the most successful products, helping out players in small businesses to access cheap credit instantly.

“Over 2.5 million customers have taken a loan between UGX 3,000 and one million depending on what they do. I want to ask our customers to continue using Airtel money regularly because the more they use it, the more they qualify for higher loans. We have 14-day loans and a 30-day loan. The interest is very reasonable compared to market rates,” he says.

Just in June this year, more than 400,000 people took Wewole loans amounting to more than UGX 8bn and the repayment behavior in encouraging.

“Majority pay before the due date and those that delay, pay shortly after. This is a good product that we can scale up through data mining, to ensure that we don’t give people more than what they can repay. We believe that by the end of this year, more than 10 million of our customers will be able to access this product,” he adds.

While many believe in growing businesses through acquiring loans, there is a school of thought that believes savings can build credit. This is why Airtel also introduced the Super Saver product in partnership with KCB Bank to help their clients grow their creditworthiness through savings.

“SUPER SAVER is a service available to all Airtel mobile money customers and the deposits are safeguarded by the deposits protection fund. If you look at interest in commercial banks, it is between one and three percent yet our Super Saver account gives you a five percent interest.”

Open APIs.

As a way of further supporting businesses, Airtel Money rolled out open APIs (Application Programming Interfaces) that enable any organization in the country to integrate Airtel Money within two working days and start transacting. 

“It has been demonstrated that in a month we are able to do 50 integrations of this nature. These APIs are open to everyone. We let the business work on its customer journey and then integrate with us thereafter,” he says.

40 Days 40 FinTechs.

Airtel Money is participant number twenty-second (22^nd) in this year’s 40 Days 40 FinTechs initiative organized by HiPipo in partnership with Level One Project, Mojaloop, ModusBox, and Crosslake Technologies, and supported by the Gates Foundation.

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.

Aritho is thankful to HiPipo and partners for the 40 Days 40 FinTechs initiative that allows open and candid discussions about the financial technology industry in addition to creating awareness about the different players and what they have to offer.

HiPipo CEO Innocent Kawooya thanked Airtel Money for the many innovations in the FinTech space and applauded them for their open APIs which will definitely drive interoperability.

“Airtel Money has one of the biggest customer base in Uganda. If they avail these numbers to the FinTech marketplace, then our push for including everyone becomes very easy. Airtel Micro Merchant will surely go a long way in helping small businesses manage their payments. Another product that has done wonders for the market is Wewole in partnership with Jumo World. It continues to bail out thousands of Ugandans with instant access to funds,” he said.

Our Reporter.

When Ephrance Eunice Namugenyi’s father started a paver and block-making business, he contacted his daughter to use her Information Technology skills to market his products.

The two sat down and agreed to do something much bigger; create a digital marketplace for building materials.

“I also work at Kyambogo University where I meet students who don’t have jobs after school yet they are good at architectural work, engineering, etc….so, I said we can as well market professionals,” says Namugenyi.

It is this small meeting in April 2020 that led to the birth of Kuzimba Services – a digital payment solution that allows clients to purchase building and construction materials and services. Right from purchasing land to surveying to drawing architectural plans to building; Kuzimba provides the technical know-how.

Ephrance Eunice Namugenyi, the Founder and Managing Director of Kuzimba Services says the biggest challenge people face is the hustle of looking for genuine building materials at the right price. So, Kuzimba services works with construction professionals and genuine service providers and guarantees delivery of the right quality and quantities to the client’s construction site.

How it works

When a client gets onto kuzimba.com and maybe they want iron sheets, they click on the item and input the number and type they want. Then the quotation is made.

“Then we receive the notification and we call the client and get more details about the delivery,” she says.

The client is supposed to make a down payment of at least 50 percent electronically and then complete the full payment on arrival. Namugenyi notes that since April 2020, roughly the time when Covid-19 lockdowns started in Uganda, they have received more than 800 unique customers and over 60 repeat clients.

“Covid-19 came as a blessing. It was a good start for us. Being a teacher, this business stood out for me because I could make some money during Covid-19 and many people used the period to finish their building projects because they had some time on them. Many people called us because they were scared of moving. The challenge was transporting. We had to actually work very hard to deliver.” she says.

She adds that life after Covid-19 is much better because transport is easier and people are adopting digital financial systems faster. Kuzimba is gender-sensitive, with at least 51 percent of the team being women.

“I have personally struggled to scale through as a woman entrepreneur. It is a bit hard for a woman to convince a man that you can deliver maybe cement or sand to a construction site. But we have had to convince ourselves that we can do it. It takes a lot of peer mentoring, the more you do something, the more you become confident about it,” she says.

40 Days 40 FinTechs

Kuzimba, who are the defending champions of the 2021 Women in FinTech hackathon, comes as participant number 19 in this year’s 40 Days 40 FinTechs initiative.

Namugenyi says she is indebted to HiPipo for giving them a platform to build confidence; especially the Women in FinTech Hackathon which pushed her to the front.

“I realized there are many women in this space and I can actually make it. Thank you for marketing us. I don’t think of failing anymore. I think if this initiative is made countrywide, banks will understand the importance of working together,” she says.

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 of us, 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.

HiPipo CEO Innocent Kawooya noted that this year’s edition of 40 Days 40 FinTechs is cementing the achievements of the previous editions – where over 60 FinTechs have been transformed – but also building on them to leverage digital financial inclusion in East Africa and beyond.

“Thanks to initiatives like 40 Days 40 FinTechs and Level One Project among others; DFSPs, and FinTech stakeholders across Africa will soon gain access to fully functional IIPS regulatory sandboxes to prototype, build and test innovative digital products while evaluating Mojaloop technology with the aim of solving data/infrastructure localization government regulations and directives,” Kawooya said.

He added: “40 Days 40 FinTechs initiative is bringing together DFSPs and stakeholders (including regulators and development partners) to drive discussions on building instant and inclusive payment systems that will solve the most emerging challenges that limit low-income users from onboarding onto formal financial platforms.”

Our Reporter.

Marie Mintalucci has spent a number of years supporting female-led groups across Sub-Saharan Africa to create self-sustaining ventures. However, during this time, she has mainly made two observations.

One, women often borrow huge sums of money for unprofitable purposes like sending children to school or putting a new roof on the house. However, they often motivate for this credit as money for improving their businesses to increase the likelihood of obtaining the loan.

Two, the group micro loans that these women qualify for are often risky and expensive. Moreover, those loans are typically not in line with individual needs.

“With this in mind and some exciting behavioral science, I developed the idea of WomenSave to empower these women to meet their own self-defined financial goals on their terms and conditions with personalized savings plans,”Marie Mintalucci, the WomenSave Executive Director noted.

WomenSave is a non-profit organization started in 2020 that empowers unbanked women in rural East Africa to meet their financial goals with personal savings plans and mobile money.

All participants are taken through one-on-one financial advisory services, financial literacy training, customized goal-based saving plans, and critical instructions on how to open and use a mobile money account.

Mintalucci stresses that her research proved that web-based saving has the power to give women a real voice and a risk-free tool to join the digital economy. The project, which was first piloted in Western Uganda, targets women who live below USD 2 a day.

“We started in 2020 and today we have reached approximately 1,300 clients in Western Uganda who collectively have deposited over USD 84,000,” she says.

But her biggest satisfaction comes from the 1,165 financial goals achieved including buying livestock, paying school fees, purchasing home goods, making home improvements, investing in businesses and covering healthcare expenses. In addition, clients have more than doubled their individual reserve funds.

“WomenSave itself is not a financial service provider. We are the bridge between existing mobile money services and this market segment (rural women),” she explains.

She however acknowledges that her initiative is just a drop in the ocean because globally, the state of female financial inclusion is still very bad.

“There are nearly one billion women unbanked globally and in Uganda alone, approximately five million,” she says, noting that there is need to address both demand and supply constraints.

“On the demand side, we need to build trust and onboard women on the digital financial system in a welcoming manner. On the supply side, we need to show banks that this segment can be profitable. WomenSave aims to tackle both of these challenges, to fundamentally change the way banks welcome women and moreover the way those women use financial services to make their goals a reality,” she says.

40 Days 40 FinTechs

WomenSave is the 18^th participant in this year’s edition of #40Days40FinTechs.

Mintalucci applauded HiPipo for this initiative that is critical in raising the importance of what is being done in the financial inclusion space to inspire conversations, improve donations, investments and partnerships.

According to HiPipo CEO, Innocent Kawooya, WomenSave is a step in the right direction for women financial inclusion especially in rural Africa.

“The most beautiful thing is that WomenSave is run on a unique model. Many women crave things but lack proper means of making targeted savings. This model is the solution to that need,” he said.

Kawooya added that this year’s edition of 40 Days 40 FinTechs is cementing achievements of the previous editions – where over 60 FinTechs have been transformed – but also building on them to leverage digital financial inclusion in East Africa and beyond.

“Thanks to initiatives like 40 Days 40 FinTechs and Level One Project among others; DFSPs, and FinTech stakeholders across Africa will soon gain access to fully functional IIPS regulatory sandboxes to prototype, build and test innovative digital products while evaluating Mojaloop technology with the aim of solving data/infrastructure localization government regulations and directives,” 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 of us, 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.

Our Reporter.

In Africa, the sources of business capital are usually personal funds, family, friends and loans. The first three are usually the ideal sources while the fourth is the most realistic.

As such access to affordable and readily available credit is key to the success and sustainability of businesses. Big and well-established businesses easily get funds from financial institutions because they have the required documentation and collateral security.

Unfortunately, the same can’t be said of start-ups, small and medium sized enterprises (SMEs). It even gets worse for informal businesses, which are the majority.

But with increasing uptake and advancement in technology, the future is looking brighter. Already, a few institutions are offering affordable digital loans to individuals and SMEs.

One of such organizations is Numida; a digital platform that provides convenient and unsecured working capital loans to African start-ups and SMEs. It doesn’t ask for paperwork, no collateral and the loan is processed within 24 hours. Since 2017, it has so far lent out over USD 16 million to SMEs. That is about UGX 60 billion.

Numida is the 16^th participant in the 2022 40 Days 40 FinTechs initiative.

We had a detailed conversation with Ana Grajales, the Numida Uganda Country Director. Below is what she had to say about Credit, FinTech, supporting Small Businesses, Women Empowerment and Financial Inclusion.

QN: To those hearing about you for the very first time, what is Numida and what do you do?

ANS: Numida provides unsecured working capital loans to micro and small businesses through our mobile app. Our loans require no paperwork, no field visits, no collateral, and are disbursed quickly.

We are working to be the first and largest mobile platform in Africa focused on offering digital, convenient, and responsible financial services to semi-formal African micro and small businesses. Our ambition is to enable at least 1 million small business owners on the continent to achieve their dreams by 2030.

QN: Who is eligible for your credit facilities? What does one need to access your credit?

ANS: The people eligible for Numida loans are those that follow in this category;own a business and have some kind of proof of ownership, have a National ID (or Passport or Driving Permit), and have mobile money numbers in their names.

If you meet these requirements, then the next step is to download the Numida APP and fill in details about your business and upload some photos. Numida staff will then contact you and follow up. The loan is then sent to your phone through Mobile Money.

 QN: Tell us more about how you are supporting informal and undocumented businesses.

ANS: Our clients are businesses and business owners with different degrees of formality. From the mobile money shop around your corner; to your tailor or your favorite clothes shop or your local pharmacy. We lend them 30-day, working capital loans; starting from UGX 200,000 to UGX 10M; with flexibility that really matches the needs of the business.Our service is all about convenience. First time borrowers can get a loan within 48 hours of applying, and repeat customers can get their loan disbursed to their mobile money account in seconds; due to our efficient operations and proprietary technology.

QN: For the time you have been in business, how many Ugandans and local businesses have you extended credit to? How much credit have you given our so far?

ANS: We started lending to businesses in 2017; since then we have lent to more than 25,000 micro and small businesses.  We have disbursed more than USD 7 Million worth of credit to this segment of customers and we are excited to keep helping micro and small businesses grow.

There are 1.1 million micro and small businesses in UG and they contribute about 75% of GDP, so it is about time that micro businesses have the right tech and financing to match their needs.

QN: How is Numida enhancing Women Financial Inclusion?

ANS: Because we tailor our requirements to the business needs, we have been able to serve more informal and undocumented businesses, which are also more likely to be owned by women. Currently women make up 48 per cent of our portfolio, and this has been intentional.

In terms of staff, we are 54 percent female and similarly split on managerial positions. We intentionally seek diverse team members and build an environment that can retain diverse talent and help them thrive.

QN: As an entity actively involved in the FinTech space, are you implementing Level One Project Principles which are Industry Best Practices such as Tiered KYC, Accessibility on Low-Cost User Devices, Real-time/Immediate funds transfer, Same-day settlement, Pricing Transparency and Irrevocability?

ANS: We use the same principles to design our product; though we apply them differently. Tiered KYC is allowing customers to engage with you with minimum requirements or less of a KYC burden; and our whole philosophy is lending to informal businesses that may not have all of the documentation or requirements needed by commercial banks.

Same day settlement is a core principle of our product; we give convenient loans and services, within 24 hours or within seconds; we settle transactions on a near-instantaneous basis. Our application shows customers their outstanding balance, at any time, as well as up-to-date information about their business and maximum loan quote.

QN: In your opinion, how does the 40 Days 40 FinTechs initiative support the industry?

ANS: The 40 Days 40 Fintechs initiative showcases the diversity and innovation in our space; visibility is important in facilitating attention, creating support and nurturing potential collaboration and partnerships. We are happy to take part.

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 HiPipo partners – Level One Project, Mojaloop, ModusBox, and Crosslake Technologies generate, but mostly because of the continuing generous support of the Gates Foundation.

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.” Noted Innocent Kawooya, HiPipo CEO.

Ends.

Our Reporter.

One of the biggest challenges faced by Ugandan migrant workers working in the Diaspora is money remittance. The cost of sending money is very high, ranging between five and ten dollars for transferring little amounts. On top of this, many have been defrauded of their hard-earned money – sometimes by their own relatives and friends who misappropriate it.

Imagine coming back home after two years of hustle in the Middle East and you realize that the house or business you were funding was all a hoax! That’s why we have lots of cases of depression and suicides among ‘returnees’.

It is ‘these’ depressions that Pivot Payments came to heal through an online banking system that allows one to conveniently manage their money without using a third party.

“The person just needs to download our mobile application and they will be able to save, send or spend money. This application is good for the Kadamas (Migrant Workers), as they are known. When they access Pivot Payments; they can save their money there because we have got a wallet; they are able to spend because they can pay bills directly from wherever they are for the people back home such as water and electricity bills or school fees; they can as well send it to the bank or mobile money wallet,” says Princess Shamirah Kimbugwe, the Founder and CEO Pivot Payments.

Born during the Covid-19 pandemic, Pivot Payment has received tremendous uptake because of the increasing demand and adoption of digital financial services.

“We were born in Covid. So, we were born out of fire….Covid in a sense shaped our resilience as a company. You have to fight to get a customer. Covid gave us a way to address the digital needs of that particular customer. Most businesses are closing, downscaling…but we have had to strengthen, we are going into other markets. We are expanding. So, Covid has harnessed our business…” says Kimbugwe.

According toKimbugwe, close to 170,000 people are banking with them with more than 16,000 using the mobile application. The platform has so far handled about 14 million US dollars in transactions. 

“Migrant workers from other countries are calling for our services. We are soon opening shop in Kenya, Tanzania and Ghana. Our ambition is to be in 10 markets across Africa by the end of next year,” she says.

Given that they primarily target migrant workers in the Middle East, Kimbugwe says more than 70 percent of their customers are women, since many are there as domestic workers.

Prohibitive laws.

Kimbugwe notes that while Uganda’s FinTech industry has lots of promise, there are still many regulatory bottlenecks.

“The FinTech industry in Uganda is still in the infancy stage. If you have over 70 FinTechs in Uganda, how many of them are licensed? Only 14! What does that tell you about us? Availability of FinTechs is there but maturity is not there. When you come to regulation, there is a new regulation that is being operationalized. But the enforcement has gaps,” Kimbugwe notes, adding;  

“The law is financially prohibitive.  When you say the minimum capital requirement for a FinTech to be licensed is UGX250m, money supposed to sit in the bank, then there is a grey area. FinTechs are run by young people who can’t afford to raise such money! Uganda has attracted just about 250m US dollars in FinTech investment but Kenya is close to 1bn dollars and Nigeria 2bn dollars. What are they doing right that we are not? It goes down to the environment, the laws. Let’s look at regulation; how we attract players. If Google and Amazon are setting up in Nairobi, why not in Kampala. Why? Let’s revise our tax regime. Regulation regime.”

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 from the project partners – Level One Project, Mojaloop, ModusBox, and Crosslake Technologies generate, but mostly because of the continuing generous support of the Gates Foundation.

“Knowledge is power. The 40 Days 40 FinTechs initiative has given us knowledge of the existing players and what they are doing. You have opened a door for information and collaboration. If you realize that someone is doing something, you can partner and achieve more,” Kimbugwe says.

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 Pivot Payments for simplifying banking and managing finances.

“Convenience is a very strong pillar for the success of any business and that is exactly what Pivot Payments is providing for our migrant workers. They can now comfortably be in Dubai and pay schools fees for their children back in Iganga, Masaka or Luweero without hustle. That is an ultimate financial inclusion model,” he said.

Kawooya added that this year’s edition is cementing achievements of the previous editions – where over 60 FinTechs have been transformed – but also building 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.

Our Reporter.

Many Ugandans are full of business ideas but their biggest bottleneck is the lack of capital and inability to access credit. For a financial institution to give your business a loan, they will ask for a trading license, national ID, bank statement, tax report among others.

They therefore get stuck in the informal sector where growth and expansion is very limited.

This is one of the reasons why Tawaza Diva was formed, to, first, provide affordable finance to women and youths in the rural and informal sector but also to transition them into the formal sector.

According to Winfred Nandawula, the TAWAZA Program Director, Tawaza Diva is a product of Tawaza Initiative, a development solutions hub established in 2018 currently operating as a non-deposit-taking financial institution. Tawaza has so far changed lives of more than 1000 women and youth in the rural and informal sector by giving them micro loans.

Nandawula says her passion for financial inclusion dates back to 2012 when she harbored the idea of teaching women some financial literacy, especially how to save for the future.

“The idea didn’t pick up at all,” she says, noting that she realized that the problem was actually bigger than financial literacy; it was financial inclusion

“As women, the social-cultural norms do not allow us to step out there and access finance because we need collateral, guarantors and sometimes banks would ask us to have our husbands sign for us…so, access to finance was difficult. We realized the actual problem was the limited penetration of banks. There were no branches in rural areas. That is when mobile money started and we were excited. We said this will increase financial inclusion.”

But although mobile money significantly improved financial inclusion, people took time to accept it, especially in the villages.

“They were skeptical about storing their money on the phone…what if it gets lost? That is why they chose to keep money at home or in kiosks and they end up losing it all in case of a fire outbreak or break-in. So, we had to teach people about technology and how these platforms work, safely.”

Since inception in 2018, Nandawula says Tawaza has picked pace, especially after the Covid-19 pandemic. The platform now boasts 86 individual borrowers and more than 600 people clustered in women and youth groups.

She, however, acknowledges the challenge that borrowers are finding it difficult to repay the loans, due to the bad business environment posed by the post-Covid effects.

“Our target now is to onboard these women and youths from the informal sector into the formal sector. This will help us access bigger credit/stimulus from partner banks or even Uganda Development Bank,” she says.

“There is not much that can be done if we don’t get women and youth into the formal sector…So, we are trying to formalize them without creating much tax burdens and other requirements.”

Meanwhile, Nandawula appreciates #40Days40FinTechs initiative for being an advocate for the adoption of financial technology because there is an urgent need to demystify the bad attitude towards Financial Technology. She, however, wants better laws that protect both the customers and providers of digital financial services.

40-Days 40-FinTechs

Tawaza is the 14^th participant in Season Three of the #40Days40FinTechs initiative that seeks to shine a light on the unique stories about innovations that are enabling ever more people to join the digital economy space.

The initiative is run under HiPipo in partnership with the Level One Project, Mojaloop, ModusBox, and Crosslake Technologies with support from the Gates Foundation.

According to HiPipo CEO Innocent Kawooya, Tawaza’s focus to bail out women and youths is core to HiPipo’s Include Everyone program.

 “Women and young people are the drivers of the next generation. We must do everything possible to fully include them in the digital financial value chain,” he said.

He further called on digital innovators and FinTechs around East Africa to embrace 40 Days 40 FinTechs as Season three covers physical destinations in Uganda, Kenya, Tanzania, Burundi and Rwanda.

Kawooya added that this year’s edition will cement 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.

The #40Days40FinTechs platform is run under HiPipo’s broader 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 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.