Africa makes great strides in financial inclusion

DAR ES SALAAM: FINANCIAL inclusion across Africa has made significant progress, with millions of underserved people gaining access to income-generating assets through innovative financing solutions, according to Watu’s 2024 Sustainability Report.

The report highlights how the asset FinTech’s affordable financing model is transforming livelihoods, boosting digital access and reinforcing Watu’s role as a key driver of inclusive growth across the continent.

Watu is an Asset FinTech engaging in mass-market mobility across Africa through financial inclusion and accessibility.

Chief Executive Officer for Watu, Andris Kaneps said the report details how Watu’s asset financing solutions have enabled millions of underserved individuals to access incomegenerating assets, bridging gaps in financial services and digital connectivity.

“By providing flexible, affordable financing options, Watu empowers entrepreneurs and small businesses to expand their economic opportunities and improve livelihoods,” he said.

Additionally , Watu’s commitment to Environmental, Social and Governance (ESG) principles ensures that its growth is sustainable and responsible.

The company’s focus on clean mobility, gender equity and community development further strengthens its impact, driving long-term inclusive growth across the continent.

“The report reflects Watu’s dedication to ESG principles, emphasising transparency, accountability and driving inclusive economic growth across Africa,” he said.

He said this was the second sustainability report demonstrates that sustainability is integral to responsible growth and impact.

“We remain committed to financing underserved communities with income-generating assets, advancing digital financial inclusion and supporting e-commerce,” he said.

On smartphone financing, Watu’s 2024 Sustainability Report emphasised on digital inclusion, positioning Watu Simu as a key driver in closing the digital gap and fostering economic opportunities for underserved communities.

The report revealed that in Tanzania, 16 per cent of smartphone users started new businesses mainly women-led in trade and digital marketing while women now make up onethird of Watu’s management, reflecting progress in gender equity.

Since 2022, Watu has financed over 1.8 million devices across seven countries via 2,200 dealerships and 4,800 sales points, expanding access to underserved communities.

In Tanzania, 64 per cent of users reported income growth; in Uganda 54 per cent saw increased earnings, often through smartphone-enabled jobs and entrepreneurship.

In Kenya, 40 per cent of users reported income growth, with half exceeding 10 per cent, while 30 per cent secured new jobs and 12 per cent started digital businesses underscoring smartphones’ role in expanding economic opportunity and productivity.

Across Tanzania, Kenya and Uganda, 37 to 44 per cent of customers reported improved savings and financial management, with most experiencing increases of over 10 per cent.

Mobile Money Adoption remains strong, with 86 per cent of Ugandan users accessing mobile banking weekly, accompanied by high usage rates in Kenya (65 per cent) and Tanzania (61 per cent).

Smartphones are widely used for mobile money transfers, online bill payments and accessing educational platforms.

Smartphone financing has boosted digital financial access, especially in rural areas, with a 30 per cent rise in digital participation and reduced urban-rural gaps.

Digital literacy and content creation have grown across all markets, particularly among youths.

Smartphones have also improved communication, healthcare access and social connections, 45 per cent of Kenyan users accessed health information, with many reporting stronger family ties.