{"id":23268,"date":"2026-02-03T17:53:42","date_gmt":"2026-02-03T15:53:42","guid":{"rendered":"http:\/\/jhb-webdevelopers\/channelafrica\/news\/digital-financial-tools-unlocking-opportunities-for-africas-informal-economy\/"},"modified":"2026-02-27T16:34:06","modified_gmt":"2026-02-27T14:34:06","slug":"digital-financial-tools-unlocking-opportunities-for-africas-informal-economy","status":"publish","type":"news","link":"https:\/\/www.channelafrica.co.za\/channelafrica\/news\/digital-financial-tools-unlocking-opportunities-for-africas-informal-economy\/","title":{"rendered":"Digital financial tools unlocking opportunities for Africa\u2019s informal economy"},"content":{"rendered":"

The company notes that nearly 70% of Africa\u2019s economy remains informal, with millions of small traders, <\/span>cross\u2011border<\/span> merchants and <\/span>micro\u2011entrepreneurs<\/span> relying almost entirely on cash.<\/span><\/p>\n

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This dependence, driven by limited access to traditional banking and digital infrastructure, exposes them to theft, financial loss, poor record\u2011keeping and long\u2011term exclusion from formal economic systems.<\/span><\/p>\n

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Speaking to Channel Africa on Tuesday, Mukuru Chief Executive Officer Andy Jury said the platform aims to bridge the divide between Africa\u2019s formal and informal financial ecosystems.<\/span><\/p>\n

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\u201c<\/span>Our estimate is<\/span> that somewhere between two\u2011thirds and 75% of payments and transactions in Africa still happen informally, over the counter, cash\u2011to\u2011cash and in an unregulated environment,\u201d he explained. \u201cIt dwarfs the formal financial services ecosystem.\u201d<\/span><\/p>\n

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Jury<\/span> said Mukuru plays a critical role at \u201cthe intersection of the formal and informal financial services ecosystems<\/span>\u201d,<\/span> offering <\/span>first\u2011time<\/span> financial access to people who have never held a bank account or used a digital financial product.<\/span><\/p>\n

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\u201cNinety\u2011five percent of our customers come to us having never touched a bank account,\u201d he said. \u201cAll you need is a mobile phone and some form of identification. We take you on a journey that helps you send, store, spend and increasingly, borrow.\u201d<\/span><\/p>\n

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As customers transact more, Jury said, they become more digitally confident, and their costs decrease due to better data profiles. This behavioural shift unlocks access to products such as small loans, insurance and digital wallets.<\/span><\/p>\n

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\u201cThere\u2019s a massive unlock for those currently transacting informally, and for the businesses and partners who want to engage with the biggest part of Africa\u2019s economy,\u201d he said.<\/span><\/p>\n

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Jury<\/span> said Mukuru\u2019s approach begins with understanding the lived realities of informal entrepreneurs. \u201cWe put ourselves in the shoes of our customers,\u201d he said. \u201cWe design products for their world.\u201d<\/span><\/p>\n

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A major early barrier was cross\u2011border remittances: people often relied on taxis to move money across borders, a process that could take weeks, involve multiple informal fees, and sometimes fail <\/span>entirely<\/span>.<\/span><\/p>\n

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Mukuru now enables instant cross\u2011border payments using mobile phones. <\/span>\u201cWe ensure that money gets to its destination instantly,\u201d Jury said. \u201cIt\u2019s affordable, secure, traceable, and customers always know where their money is.\u201d<\/span><\/p>\n

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Jury illustrated how digital tools transform trading for cross\u2011border entrepreneurs:<\/span><\/p>\n

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A Zambian trader buying goods in Malawi previously needed to spend several days travelling, negotiating and transporting money. Now, digital payments allow the trader to:<\/span><\/p>\n