KAMPALA, UGANDA / ACCESSWIRE / February 4, 2022 / In the developed world, the 30-day pay cycle has largely fallen out of favor; employees often get paid every day, every week, or every two weeks. In Africa, the majority of employees are only paid once every 30 days. This leaves a large gap between payments, one that employees in developing countries often struggle to bridge.
The 30-day pay cycle is particularly disadvantageous during emergency situations. As Zofi Cash founder and CEO Paul Kirungi points out, "Emergencies happen every day, and they can't always wait for payday - especially when payday is almost a month away. In the event of an emergency, financial insecurity can be life-threatening."
Breaking the Cycle
Breaking Africa's 30-day pay cycle has the potential to change the lives of many people working in Africa. Many are seeking a solution to the problem, and some FinTech companies have turned to novel technological solutions to address this issue. Zofi Cash is an African-based FinTech company working to do away with the 30-day pay cycle by letting employees access salary advances to cover financial emergencies.
Shaping Africa's Future
Salary and wages is a $30 billion USD market due for disruption in sub-Saharan Africa. Africa is projected to reach a population of 1.8 billion by 2030, with 70% of the population under 30. This is the youngest marketplace and workforce in the world, and FinTech companies are taking notice. In fact, FinTech is already playing a major role in shaping and diversifying Africa's future. Technology is changing the African story, aligning it with the rest of the world's development goals.
There are a wide variety of growing industries in Africa. The continent needs quick solutions in health, agriculture, clean energy, tourism, education, and financial inclusion. According to Zofi Cash, filling these needs won't be easy; there are many pieces to the puzzle, but the company is confident that the dots will start to connect over time. "People will join you on this journey if you are willing to go all-in," says Kirungi.
Like any other startup in Africa, government regulation has been one of the biggest hindrances for the company. However, as African governments start to see the value that these FinTech startups bring to the table, things have begun to get easier. After the launch of its Salary Advance model, Zofi Cash has plans to roll out a new software designed to automate an organization's payroll while giving employees and contractors more control over when they get paid.
The Future of Zofi Cash
In the three months since its launch, Zofi Cash has seen over 6,000 app downloads, processed close to $100,000 in salary advances, served more than 1,000 employees, and enrolled more than 170 small- to medium-sized companies with over 10,000 employees on the waitlist. The company has grown at 170% month-over-month for the past three months. Zofi Cash also participated in the Start-up Africa Road Trip competition and emerged as the best overall FinTech company. The team is planning a trip to Italy in May to strengthen the company's relationship with the Italian FinTech market.
The company recently entered the Ugandan market and is targeting four other African countries, including Kenya, Tanzania, Rwanda, and Ghana, in the next 2 to 5 years. They hope that, in the next few years, people across the world will be in control of when and how they want to get paid.
Zofi Cash has also patented a unique, subscription-based lending business model (USPTO patent pending). The company believes that, not so far from now, the way the world consumes financial products is going to change; Zofi Cash wants to be the game-changing company that kickstarts this new age.
Meet the Founders
Paul Kirungi is the founder and CEO of Zofi Cash. He was inspired to start the company after finding himself unable to buy diapers for his newborn daughter 12 years ago. Unable to get a salary advance from his employer, he was forced to ask for money, something his friends had to do often. This was the spark behind Zofi Cash. He built the company from the ground up along with co-founder and CTO Gordon Turibamwe.
Learn more about Zofi Cash online at https://www.zoficash.com/. Follow the company on LinkedIn, Facebook, and Instagram. Reach out to Zofi Cash at [email protected] or call 0800200503.
SOURCE: Zofi Cash