Tawaza is using FinTech to serve informal women traders and Youth. #40Days40FinTechs Season 5, Day 38

Informal Women Traders and Youth are some of the most unserved and underserved people in matters digital and finance. For finance particularly, this is so because most Informal Women and Youth don’t have collateral security to use to access credit plus majority of their businesses are undocumented thus lack proper financial records and data to support their need for finances.

With most formal institutions not welcoming them, many turn to seeking for support from alternative credit channels which are usually expensive.

However, innovators are contributing to addressing this challenge through developing platforms that help create financial history and also record business data for these kinds of businesses. One such platforms is Tawaza Digital Varieties; a new digital and financial inclusion start-up for Informal Women and Youth. 

“We are a digital financial services provider currently doing savings, credit and payments. We mainly work with Women and Youth in the informal sector. We deliver these services through a digital platform that was installed for us by our partners – Instersolve, Kenya. This platform came with a complete framework that allows us to onboard users and also be able to have subscribers visit it and learn more about how to work with digital products,” noted Winfred Nandawula, the regional programs director for Tawaza Digital Varieties.

She added: “Among the digital products we have is Diva Grow; this allows customers to do saving and investment. After subscription, they choose from three available options and get started. They can deposit, withdraw and buy shares. We also have a digital ledger product, which helps small businesses to smartly record their business records and use them to access finance.”

Nandawula highlighted that their target audience are people with some income source but have been left out of the formal finance systems due to absence of records about their businesses. She noted that Tawaza is accessible both as a mobile APP and through USSD.

“We started to offer digital financial services in 2022. We have onboarded over 1300 subscribers and on these, some 200 are active monthly platform users. These save and access credit of not more than UGX 500,000 every now and then,” she noted.

Tawaza has featured on Day 38 of the annual 40 Days 40 FinTechs initiative Season 5.

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 and services. It also gives players a platform to share their ideas on how the unserved and underserved by the present financial systems can be brought into the fold.

With over 150 participants in the last four years, #40Days40FinTechs continues to be the world’s premier showcase event for innovations that are enabling underserved populations to join the digital economy space. We know that this can only get better owing to the inspiration and collaboration of our partners; Level One Project, Mojaloop Foundation, INFITX, Cyberplc Academy, Ideation Corner, and Crosslake Technologies. Most importantly, the initiative owes its continued success to the generous support of the Bill and Melinda Gates Foundation.