A new partnership has been established between the International Finance Corporation (IFC) and the fintech company Cashi. This collaboration aims to enhance digital payment infrastructures within Central Africa, particularly in Chad. The efforts focus on creating interoperable solutions suitable for environments with limited connectivity.
Digital Payment Solutions by Cashi
Cashi provides a robust digital payment platform. This platform allows users and businesses to send and receive money using mobile phones, point-of-sale devices, and SMS-based tools. It connects users with various financial institutions within one interoperable ecosystem. This development is crucial for an economy where cash transactions dominate and formal financial services remain scarce.
Impact on Small Businesses
- Fewer constraints on cash handling
- Lower transaction costs
- Improved access to financial services
These advancements enable small businesses to increase revenues and foster job creation in the region.
Current Financial Landscape in Chad
Chad faces significant challenges in financial inclusion. Just 10% to 15% of adults possess a bank or mobile money account. This figure is notably lower than the over 30% average across sub-Saharan Africa.
Support from IFC and Goals of the Partnership
Tarneem Saeed, CEO of Cashi, highlighted the importance of IFC’s support. She mentioned that this collaboration helps adapt their platform to the realities of Central Africa. The partnership will facilitate closer cooperation with regulators, build trust among local merchants, and provide practical financial tools for everyday use.
Statements from IFC Leadership
Olivier Buyoya, the IFC Division Director for West Africa, emphasized the need for accessible digital financial services in regions with low smartphone penetration. He noted that the project aligns with IFC’s commitment to creating low-tech, resilient solutions that enhance access to finance for individuals and businesses.
Alignment with National Development Goals
This partnership supports Chad’s Tchad Connexion 2030 development agenda. This agenda prioritizes digitalization and financial inclusion as fundamental components for economic diversification and enhanced revenue collection. The initiative is part of IFC’s broader commitment to the Sahel region, focusing on multiple sectors including financial services, agribusiness, digital connectivity, and climate resilience.
