What does informal economy mean?
An informal economy is the part of any economy that is neither taxed nor monitored by any form of government.
Accounting for 80% of jobs, the informal sector is the main source of employment and the backbone of economic activity in urban Africa.
The pivotal role of the urban informal sector is expected to continue in the foreseeable future in light of Africa’s growing population. The size of the working age population in the region will increase by 224.0 million by 2030 and 730.4 million by 2050.
What is mobile money?
Mobile money is a mobile payments system based on accounts held by one MNO (Mobile Network Operator) and accessible from subscribers’ mobile phones. The conversion of cash into electronic value (and vice versa) happens at retail stores (or agents). Members can choose their preferred payment provider to send contributions to their savings groups online. All transactions are authorized and recorded in real-time using SMS.
Africa now accounts for 70% of the world’s $1 trillion mobile money value. The value of Africa’s mobile money transactions edged up 39% to $701.4 billion in 2021 from $495 billion in 2020.
What are Cooperatives?
Cooperatives are people-centered enterprises. They are jointly owned and democratically controlled by and for their members to realize their common economic, social and cultural needs and aspirations. As enterprises based on values and principles, they put fairness and equality first, allowing people to create sustainable enterprises that generate long-term jobs and prosperity.
There are estimated to be around 3 million cooperatives worldwide – representing about 1 billion members. They are a forum for knowledge, expertise and co-ordinated action for multiple areas, including finance, agriculture, and industry.
What is a SACCO?
SACCOs (Savings and Credit Co-Operative) are member-owned financial cooperatives that offer savings and/or credit services to their members.
The challenge with the current system
By running a SACCO with pen, paper, and simple forms, you can quickly lose track of member information and transaction details. The delivery of statutory reports is more time-consuming, and you are more susceptible to fraud.
For members, the current system presents several challenges. They do not have a personal overview of their account(s). They spend a lot of the working day traveling to the SACCO to deposit money. They may be exposed to fraud and robbery. In addition, they do not get a financial history, which could give them better living conditions.
The product CAMS
Our product CAMS (Credit Association Management System) is a financial system that helps SACCOs manage loans, keep transaction records, and perform other operations that have a great impact on the success of a savings group. Read more about CAMS here.