Subscribe for our daily recaps of the ever-changing Crypto-currency market.

Kenya’s $20 Billion Informal Economy Backed with Blockchain Tech

Kenya’s $20 Billion Informal Economy Backed with Blockchain Tech

The blockchain tech is now helping to crack a problem that banks of Kenya had failed to resolve till date. However, measuring the creditworthiness of traders in the Kenya’s $20 billion informal economy. 

Janeffer Wacheke, a 40-year-old, owns a fresh vegetables stall in Nairobi uses her smartphones to access loans to vegetables directly from Twiga Foods Ltd, Kenyan startup. With the regards, Wacheke saves bargaining over prices and transports costs and helps her to track a credit record.

Wacheke shared;

 “My prayers have been answered. In business, you need to be fast. The more you pay, the more you get bigger loans, and the more you can sell. It has really helped me”.

The mobile blockchain application offered by Twiga, that derives its incomes from buying wholesale fresh produce and selling it to retailers. However, the retailers use the same technology that influences bitcoin to monitor how the process of ordering goods and repayments habits. The application was created by International Business Machines Corp as it trying to address a lack of finance in a region of Africa.

The Nairobi based development economist, Anzetse Were said,

“Access to credit in the informal sector is not well-known because the data is neglected. If you want to penetrate markets in Africa, you need to have a strategy for the informal sector”.

Small Businesses in Africa face a $331 billion lending gap, the World Bank’s private lending arm, the International Finance Corp. Therefore, the demand for all sized enterprises in Kenya is estimated at $6.5 billion a year, says 4G Capital, loans provider from Nairobi to small companies in Uganda and Kenya.

PR Banner

The CEO of 4G Capital, Wayne Hennessy-Barrett explains;

“If a small-shop owner can take 10 $200 loans over the course of a year. And there are 3.25 million small shop owners and 10 times that number of traders. Thus, you’re talking about a lot of people who need to buy inventory and sell it. However, don’t have access to a financial product designed around their needs”.

Moreover, the traders like Janeffer Wacheke hit their daily orders and funding track will be recorded into their mobile phones. Since, the data get examined to create patterns in spending, credit details, and demand for goods and other services.

Follow us on Twitter and Telegram

Shares 0

Author

Kerin

Kerin is active blogger and guest writer at Coinpedia. She loves writing new updates, price fluctuations and possible insights. Kerin frequently search, review and share her views among large audience via crypto media firms.