Uganda Attracts Startups Enabling Daily Pay for Salaried Employees
- Ugandan startup Thiqa Digital Finance and South Africa’s Paymenow are joining forces to introduce earned wage access (EWA) solutions to Uganda’s government employees.
- EWA fundamentally changes the traditional pay cycle by allowing employees to access a portion of their earned wages before the usual monthly payday.
- The liquidity gap between paychecks in Africa represents a remarkable USD 30 billion funding opportunity each month.
The collaboration between Thiqa Digital Finance and Paymenow to introduce earned wage access (EWA) solutions in Uganda is a significant step towards empowering workers and transforming financial services in the region. Despite challenges, the future of EWA in Africa looks promising, with the potential to improve worker welfare and retention. However, providers must address concerns about impulsive spending and differentiate their business models to ensure long-term success.
