South Sudan faces chronic cash shortages, making it tough for small businesses to thrive. A new partnership aims to change this by expanding digital financial services, providing vital support for entrepreneurs.

The Launch of DigiCash and Inkomoko Partnership

DigiCash, a mobile money provider in South Sudan, has teamed up with Inkomoko, a business development organization, to help businesses access digital financial services. This initiative comes at a time when cash shortages and limited banking options hinder many entrepreneurs from operating effectively.

The partnership means business owners can use their mobile wallets for various transactions. They can receive loans, make payments, and transfer funds electronically. By reducing dependence on cash, this new system could greatly simplify financial transactions in a country where many face difficulties accessing banks.

De Chan Awuol, the executive vice president of Digital Holding, which owns DigiCash, emphasized the importance of bridging the digital gap. He stated that financial inclusion is a central part of their mission. With this mobile platform, people can send and receive money using their phones, which is safer, especially in areas suffering from insecurity and poor infrastructure.

Boosting Accessibility and Reducing Risks

To eliminate liquidity problems, DigiCash has established over 3,000 retail outlets across South Sudan. Customers can withdraw cash from their mobile wallets at these locations, making it easier for them to access funds. Awuol pointed out lessons learned from past mobile money operators to build a stronger, more reliable system.

The initial focus will be on approximately 2,800 businesses in Juba and Bor. William Ngabozinza, Inkomoko’s country director, indicated that the goal extends to reaching 11,000 business clients by the end of 2026. Current data shows that women constitute about 70% of Inkomoko’s clients. The shift towards digital payments can help these women manage their finances more securely.

In addition to providing access to funds, the partnership also includes business training. Ngabozinza mentioned that entrepreneurs would receive guidance on record-keeping, managing loans, and growing their businesses, thus equipping them with skills that can lead to greater success.

Addressing Concerns Over Digital Transactions

While the partnership brings significant benefits, questions about safety and user experience remain. Concerns related to fraud prevention, digital literacy, and the overall regulatory framework for mobile money services were discussed during the launch.

Awuol clarified that DigiCash operates under regulations set by the Bank of South Sudan, ensuring that customer protection is a priority. Customers using the service can access it through basic mobile phones with USSD technology, making it accessible to a wider audience. Additionally, support in Arabic helps users with limited English skills navigate the platform.

Martin Oluoch, the chief operations manager at DigiCash, shared insights about transaction limits. Customers who’ve completed higher verification levels can conduct transactions up to $2,000 daily and $10,000 monthly. This tiered approach lends additional security and structure to financial dealings.

Moving Forward with Digital Financial Inclusion

Overall, the partnership between DigiCash and Inkomoko represents a significant step towards advancing digital financial services in South Sudan. With large segments of the population still outside the formal banking sector, cash transactions remain the norm. This means that the ability to leverage technology for financial transactions could reshape the business landscape.

In areas far from cities, businesses often struggle due to long travels for financial transactions. This partnership aims to ease those challenges, making it easier to send and receive money while reducing transport costs and security risks.

What this means for you

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Source: https://www.radiotamazuj.org/en/news/article/digicash-inkomoko-partner-to-expand-digital-finance-for-small-businesses