All over a sudden the spread the Covid 19 virus is exploding and disrupting the social and economic life of people in the world. This has come with travel restrictions, social distancing, total house lockdown and business shutdown. It has led to more than 12 million young people and women running micro and small businesses (MSME's) in Tanzania to face the problem of (i) insufficient working capital, and (ii) lack of access to markets. Unfortunately, more than 210,900 MSME's are shutting down and closing their businesses resulting to those businesses dying, contributing to the unemployment rate and poverty in Tanzania and Africa as a whole. Consequently, the owners of those micro and small businesses would like the government to improve access to finance, provide greater access to business development services and provide better financial infrastructure to those small and micro businesses during this Covid 19 pandemic in order to continue contributing to the social and economic GDP of the country.
According to the World Bank report, 4.7% of MSME owners in Tanzania have financial literacy and understand business risks, leaving almost 90% financially excluded without them noticing. In addition, among the 4.7% only 1.2% owners of MSME's invest in business insurance and financial saving for future plans of the business. This means that 90% of micro and small businesses in Tanzania are not insured and don't have the culture of saving and investing their small amount of money for sustainable goals.
The Digital Financial Services (DFS) and the industry of financial technology has presented us with the opportunity to bridge the financing gap that exist between marginalized people especially young people and women, and financial institutions as a way to inspire and empower them to adapt toward post Covid 19 world by accessing financial services.
Dundiza aim to democratize for the digital financial savings and investment culture of MSME's owners in order to extend access to sustainable and innovative digital wealth management opportunities to the underserved and unbanked people in Tanzania and Africa as a whole.