Zimbabwe - Business creation project

Describe your project or startup in a few words

An innovative eWallet that consolidates USSD, cloud, and fintech to enable peer-to-peer lending and micro-insurance. Enables lenders to put money into a collective financial pool, borrowers can borrow from pool, invest in their business, and then pay back

01.01 Describe your project in more detail

In Zimbabwe, the informal sector comprises 60 percent of the workforce. This means the biggest stake in the economy remains largely unbanked, under-served and facing critical challenges like limited access to financing and lack of formal credit history which results in lack of access to loans. On the other hand, those with money have limited investment channels and they don’t have trust in the banking system and prefer keeping their money as cash in their safes or under the mattress. We have innovated an eWallet that consolidates unstructured supplementary service data (USSD), cloud, and fintech to enable peer-to-peer lending and micro-insurance. So, it works by allowing willing lender CBZ account holders to put money into a collective financial pool, which borrowers can then borrow from, invest in their businesses, and then pay back into the pool with interest.

01.02 What is the main problem you are trying to solve?

Africa faces an $8 billion financing gap, posing a significant challenge to economic growth and development. Zimbabwe, like many African nations, is no exception. With 60% of its workforce in the informal sector, this gap is even more impactful. This sector is mainly unbanked and under-served, facing critical hurdles like limited financing access and absence of a formal credit history. As a result, they struggle to secure loans to grow their businesses. Conversely, those with capital distrust the banking system, face unpredictable cash value fluctuations, and have limited investment options, often resorting to storing cash physically. These issues are set to escalate as Africa is projected to have more people in informal employment than the rest of the world combined in the next decade. Our innovative solution aims to bridge this gap and stimulate economic growth.

01.03 Tell us the major benefits and/or advantages of using the product/service that your project intends to provide (at least 3).

The eWallet project offers several significant benefits: Financial Inclusion: By providing an accessible platform for the unbanked and under-served informal sector in Zimbabwe. This promotes financial inclusion by enabling these individuals to participate in financial activities such as lending and borrowing. Peer-to-Peer Lending: The eWallet facilitates peer-to-peer lending, allowing individuals with capital to invest directly in the growth of local businesses. This not only provides an investment channel for those who distrust the traditional banking system but also offers a source of financing for businesses in the informal sector. Micro-Insurance: The eWallet also enables micro-insurance, providing a safety net for individuals and businesses in the informal sector. This can help mitigate risks associated with their economic activities, further promoting financial stability and growth. Economic Growth: By bridging the financing gap, the eWallet can stimulate economic growth.

01.04 Please describe who exactly your project is aimed at serving. Who are the targeted beneficiaries?

The eWallet project is aimed at serving the informal sector in Zimbabwe, which comprises a significant portion of the country's workforce. Key beneficiaries are: Informal Entrepreneurs: These are individuals who run businesses in the informal sector. They often face challenges in accessing traditional banking services and loans due to lack of formal credit history. The eWallet provides them with an accessible platform for financial transactions and access to loans. Micro-Businesses: These are small-scale businesses that operate in the informal sector. They can benefit from the peer-to-peer lending feature of the eWallet, which can provide them with the necessary capital to grow their businesses. Individuals within the Informal Sector: These individuals, who may be self-employed or in informal jobs, often lack access to banking services and insurance. The micro-insurance feature can provide a safety net, helping them manage financial risks associated with their economic activities.

01.05 When did you start working on your project?

2024-02-01

01.06 How many other partners are associated with your business venture?

5

01.07 Among the other partners, how many are female?

2

01.08 Please describe the profile of each of the other partners (skills, experience, etc.)

Bongani Dube (CEO) is a 22-year-old civic tech enthusiast passionate about problem-solving and applying technology and research to empower communities and drive collective growth. Former role in FinTech. Computer Science Student. Kudzaishe Bhuza (CTO) is a software development enthusiast and is passionate about big data and how it influences the world around us. Former Role in Elearning. Computer Science Student. Christian Ndlovu(Compliance Officer) is a 22-year-old geography and resilience-building enthusiast. Former role in Civic Engagement. Blessing Maundura(CFO) is a 20-year-old business and economics fanatic. Currently studying a degree in Accounting and Finance. Mashia Pirimukayi (Software Engineer) is 21-year-old programmer who likes to write code and apply it in real life. IT Student.

01.09 If you have a website, a social media page (Facebook, Instagram, Linkedin…), or app, please provide the link here:

01.10 Which industry best describes your project?

g) Financial services

02.01.01 My project contributes to the No poverty goal

7 - Strongly Agree

02.01.02 No poverty - Justification

Harambe's provision of micro-loans and micro-insurance helps alleviate poverty by enabling access to financial resources for informal sector actors and the unbanked populace, empowering them to improve their economic situations and escape poverty.

02.02.01 My project contributes to the Zero hunger goal

5

02.02.02 Zero hunger - Justification

While Harambe indirectly supports food security by enabling individuals to invest in agricultural activities, its primary focus is on financial inclusion rather than directly addressing hunger.

02.03.01 My project contributes to the Good health and well-being goal

5

02.03.02 Good health and well-being - Justification

Harambe's micro-insurance offerings contribute to better health and well-being by helping individuals manage health-related financial risks, ensuring access to necessary medical treatments.

02.04.01 My project contributes to the Quality education goal

3

02.04.02 Quality education - Justification

02.05.01 My project contributes to the Gender equality goal

6

02.05.02 Gender equality - Justification

Harambe promotes gender equality by providing women in the informal sector with access to financial resources indiscriminately, empowering them economically and reducing gender disparities

02.06.01 My project contributes to the Clean water and sanitation goal

1 - Strongly Disagree

02.06.02 Clean water and sanitation - Justification

02.07.01 My project contributes to the Affordable and clean energy goal

2

02.07.02 Affordable and clean energy - Justification

02.08.01 My project contributes to the Decent work and economic growth

7 - Strongly Agree

02.08.02 Decent work and economic growth - Justification

Harambe's provision of credit and investment opportunities drives economic growth, supports entrepreneurship, and contributes to decent work for informal sector actors, fostering economic development and job creation

02.09.01 My project contributes to the Industry innovation and infrastructure

5

02.09.02 Industry innovation and infrastructure - Justification

Harambe contributes to SDG 9 by promoting inclusive and sustainable industrialization and fostering innovation. By providing access to financial resources and investment opportunities, Harambe supports the growth of industries in the informal sector. It also encourages innovation by leveraging technology and digital platforms to facilitate peer-to-peer lending and micro-insurance services. Additionally, Harambe's initiatives contribute to building resilient infrastructure by promoting financial inclusion and economic stability in underserved communities. Harambe's focus on financial inclusion helps reduce inequalities by providing marginalized and unbanked populations with access to financial services, bridging the gap between different socio-economic groups.

02.10.01 My project contributes to the Reduced inequalities goal

7 - Strongly Agree

02.10.02 Reduced inequalities - Justification

Harambe's focus on financial inclusion helps reduce inequalities by providing marginalized and unbanked populations with access to financial services, bridging the gap between different socio-economic groups.

02.11.01 My project contributes to the Sustainable cities and communities goal

3

02.11.02 Sustainable cities and communities - Justification

02.12.01 My project contributes to the Responsible consumption and production goal

1 - Strongly Disagree

02.12.02 Responsible consumption and production - Justification

02.13.01 My project contributes to the Climate action goal

1 - Strongly Disagree

02.13.02 Climate action - Justification

02.14.01 My project contributes to the Life below water goal

1 - Strongly Disagree

02.14.02 Life below water - Justification

02.15.01 My project contributes to the Life on land goal

1 - Strongly Disagree

02.15.02 Life on land - Justification

02.16.01 My project contributes to the Peace justice and strong institutions goal

1 - Strongly Disagree

02.16.02 Peace justice and strong institutions - Justification

hbhb

02.17.01 My project contributes to the Partnerships for the goal

5

02.17.02 Partnerships for the goal - Justification

Harambe's engagement with financial institutions fosters partnerships to address the underserved market, contributing to broader sustainable development goals through collaboration and innovative financial solutions.

05.01 There are a large number of customers who already use a product/service very similar to the product/service we envision creating.

4

05.02 The product/service we envision creating represents an entirely new type of product/service.

2

05.03 The product/service we envision creating could be described as a new technology.

1 - Strongly Disagree

05.04 The product/service we envision creating is an improvement on an existing product or service.

7 - Strongly Agree

05.05 The product/service we envision creating could be described as an extension of a range of products or services.

7 - Strongly Agree

05.06 The product/service we envision creating responds to a demand or need that has not been satisfied by other products/services.

7 - Strongly Agree

05.07 The product/service we envision creating is a new version of an old product/service.

5

05.08 Justification

The eWallet improves traditional banking by offering an accessible financing alternative for those lacking credit history. Unlike existing peer-to-peer lending platforms that do not cater to the unbanked or address micro-insurance needs, the eWallet combines lending and micro-insurance into one solution. Using USSD technology, it is accessible via basic mobile phones, bypassing the limitations of internet-based services. Building on peer-to-peer lending and micro-insurance, the eWallet is tailored for the unbanked, leveraging USSD technology for financial transactions. With 60% of Zimbabwe's workforce in the informal sector lacking traditional banking services, the eWallet addresses the need for affordable and accessible financing and financial security. It innovatively combines existing technologies, such as USSD and cloud, to create a financial service specifically for the unbanked sector, offering a novel solution to the challenge of limited access.

05.09 Who are your main potential competitors and what makes you stand out from them?

Harambe's competitive advantage lies in catering to the underserved with less stringent KYC regulations using alternative data. It provides holistic, customized insurance services and offers lower interest rates at only 9%. This unique positioning addresses the needs of the unbanked and informal sector, expanding access to financial services while ensuring affordability and tailored solutions. Unlike local players like Kashagi, who have higher interest rates, Harambe stands out by providing more favorable terms. Additionally, Harambe differentiates itself from conventional firms by embracing innovative approaches and leveraging alternative data. By doing so, it offers a viable alternative to loan sharks, providing a safe and regulated platform for accessing financial resources.

10.06 Are you initiating actions within your community to promote the role of female entrepreneurs?

As a coding instructor for a program aimed at helping marginalized communities(Emzini weCode) where I also mentor young talents which include women who are interested in the tech space and through my involvement with Harambe whose founding team consists of two driven ladies, I actively promote and support the role of female entrepreneurs in my community.