In a groundbreaking event at the Capital B Hotel, Kacha Digital Financial Services and Dire Microfinance Institution launched an innovative suite of digital savings and lending products, marking a first in Ethiopia’s microfinance sector. This historic unveiling promises to enhance financial inclusion and accessibility nationwide.
The inauguration ceremony, attended by city officials, CEOs of microfinance institutions, members of the Ethiopian Microfinance Association, senior bank executives, and digital financial service experts, emphasized the significance of this partnership. Dire Dawa City Administration’s Health Office Head and Dire Microfinance board member, W/ro Tsigereda Kifle, lauded the collaboration, highlighting its potential to spur local economic growth by addressing the financial needs of underserved and unbanked populations.
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Kacha’s new digital loan offerings are designed to empower individuals and businesses, including Bajaj operators, by providing instantaneous and automated access to credit via mobile devices. These digital loans bypass traditional, lengthy loan processes, leveraging advanced technology for credit scoring and comprehensive loan administration.
The partnership introduces a variety of products tailored to diverse financial needs:
- Bajaj Loan: Specifically for Bajaj operators, this short-term credit covers maintenance, fuel, and miscellaneous expenses with flexible repayment schedules of 7, 14, or 30 days.
- Digital Salary Advance: Provides employees with financial support between pay periods, offering advances over 15 days, 1 month, or 2 months with flexible repayment plans.
The new digital savings services cater to various customer needs, offering both interest-bearing and interest-free options. Users can securely save and manage their money using either a basic feature phone or smartphone, with seamless fund transfers between wallets, digital savings accounts, and bank accounts.
Kacha Digital Financial Services’ Chairman, Mr. Yitbarek Kasahun, praised the strong partnerships forged over the past two years, positioning Dire Microfinance at the forefront of the sector with innovative services. He acknowledged the National Bank of Ethiopia’s role in promoting financial inclusion, aiming to increase financial accessibility from 46% to 70% by 2025, in line with the National Digital Payment Strategy.
CEO of Dire Microfinance, Teshome Abebe, underscored the shared vision of an accessible and inclusive financial future. He highlighted the empowerment potential of the new services, which remove financial barriers for individuals, businesses, and communities. Teshome expressed gratitude to the National Bank of Ethiopia for its regulatory support and to Kacha Digital Financial Services for their efforts in realizing this initiative.
Customers can easily access these services by downloading the Dire app from the Play Store or dialing *914#. The onboarding process involves a simple KYC requirement, allowing users to explore a wide range of digital financial services, including digital savings, lending, airtime purchases, and bill payments.
Kacha Digital Financial Services CEO, Abraham Tilahun, emphasized the transformative impact of creative collaborations between microfinance institutions and digital financial service providers. He highlighted the features of the new digital savings and loan products, noting their intuitive interfaces, seamless integration, and strong security measures. These offerings extend beyond conventional services, integrating transfers, utility bill payments, airtime top-ups, package purchases, and international remittances, all seamlessly incorporated into Dire’s digital ecosystem.
These innovative solutions are poised to transform the lives of Ethiopians and the country’s digital economy by increasing access to credit and savings. The collaboration between Kacha and Dire Microfinance will unlock new opportunities for entrepreneurship, financial security, and economic growth, particularly in underserved communities. The digital nature of these offerings will bridge the financial inclusion gap, making essential services more accessible to all Ethiopians, including those in rural areas.
