UGANDA – Thiqa Digital Finance, a South African finance platform, has partnered with Uganda’s Paymenow, a financial wellness and inclusion platform, to enable Government employees to get salary advances.
The partnership will allow Uganda’s civil servants to access their wages early, interest-free, via a mobile app.
Established in 2019, Thiqa Digital Finance is adept at providing Islamic and Shariah-compliant financial solutions, utilizing its advanced technologies and platform.
Paymenow, on the other hand, is a fintech firm that promotes financial empowerment by allowing employees to tap into wages they have already earned using a mobile app and website.
Through this collaboration, Thiqa will apply its in-depth understanding of the Ugandan market to improve upon the conventional monthly wage distribution system by offering workers timely and affordable access to their rightfully earned income.
Paymenow’s platform, which has already facilitated financial access for over half a million individuals across Africa, will now expand its services to Uganda in partnership with Thiqa.
The mobile application provides early wage access and includes extensive financial education resources, encouraging a savings mindset and contributing to economic growth.
Danielle Lavan, CEO of Thiqa Digital Finance, expressed the company’s commitment to developing innovative and ethical financial products in Africa grounded in fairness, transparency, and partnership values.
She highlighted the shared vision with Paymenow in promoting financial fairness and well-being across the continent. Lavan emphasized Thiqa’s dedication to empowering Ugandan wage earners by offering convenient access to affordable finance and educational tools for financial management.
Lavan also noted that the Thiqa-Paymenow collaboration is uniquely positioned to address individuals’ common cash flow challenges between pay periods, such as affording basic necessities.
By integrating Paymenow’s direct payroll solution, they aim to assist Ugandan government employees in navigating financial hurdles and unexpected costs.
She expressed enthusiasm about replicating Paymenow’s significant user growth in Southern Africa and making a meaningful difference in Uganda.
The need for EWA in Uganda and other regions arises from the challenges many workers encounter in obtaining timely and affordable credit.
Traditional financial institutions frequently impose cumbersome procedures, while payday lenders charge exorbitant interest rates, leaving employees with few options to address their immediate financial needs.
As a result, EWA has significant potential in the African labor market, with the liquidity gap between paychecks representing a remarkable US$30 billion funding opportunity across Africa each month.
EWA offers a practical solution by providing quick and convenient access to earned wages without the burden of high fees or long wait times.
This service is a lifeline for workers dealing with unexpected expenses or cash flow issues. Stakeholders believe it can improve worker welfare and retention, ultimately enhancing productivity.
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