Uganda Draws Startups Making Everyday Payday For Salaried Workers
- Ugandan startup Thiqa Digital Finance and South Africa’s Paymenow are teaming up to bring earned wage access (EWA) solutions to Uganda’s government employees.
- EWA, often called ‘on-demand pay’ or ‘salary on-demand’ fundamentally alters the traditional pay cycle paradigm by enabling employees to access a portion of their earned wages before the standard monthly payday.
- The absence of liquidity between paychecks presents a staggering USD 30 B funding opportunity across Africa each month.
The partnership between Thiqa Digital Finance and Paymenow to bring earned wage access solutions to Uganda's government employees is a significant step in empowering workers and reshaping financial services in the region. EWA has the potential to address the liquidity gap faced by workers and improve their financial flexibility and stability. However, there are challenges in terms of financial literacy and regulatory complexities that need to be overcome for widespread adoption of EWA in Africa.
