For the first time since CGAP began its funder survey, Sub-Saharan Africa in 2019 received more financial inclusion funding than any other region, with $7.6 billion in commitments. But new pressures on development budgets could impact the region.
In 2017, Zambia introduced a government-to-person (G2P) payments model that lets beneficiaries choose the provider they want to use to receive their payment. Today, the benefits to the recipients, providers and government are clear.
A new study out of Uganda offers strong evidence that lock-out technology can enable providers to sustainably lend to low-income customers, who may need credit for school fees and other critical expenses.
By partnering with pay-as-you-go (PAYGo) solar companies, electric utilities in Africa could expand low-income households' access to responsible consumer finance for refrigerators and other electric appliances.
Volatile gig income and inflexible loan repayment schedules can be a dangerous mix, as this ride-hailing driver in Nairobi learned from experience. His story serves as a cautionary tale to lenders and borrowers in the gig economy.
As customers, agents and digital financial services providers adjust to COVID-19, it’s becoming clearer what a resilient agent network looks like. Providers should take note to prepare for future crises.
Gig workers in Kenya cite savings, loans and medical insurance as top financial services they would like to access via gig platforms. While platforms across Africa increasingly offer credit and insurance, savings appears to be under-supplied.
Kenya offers higher fees to providers that facilitate digital government-to-person payments in underserved areas. Today, this makes it easier to reach hundreds of thousands of low-income people with assistance during the COVID-19 crisis.
Gig workers in Kenya report major disruptions to business and depleted savings due to COVID-19 (coronavirus), while platforms signal eagerness to facilitate government-to-person payments or loans to hard-hit workers.
One company offers microcredit. The other offers PAYGo financing for smartphones, tablets and solar home systems. In what may be a template for other microfinance institutions, they are helping each other to reach more low-income customers.