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a community-created credits system with incentive rewards for individuals, local businesses, and the slum community.

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Imagine an urban slum community with plenty of money. Together they can decide for themselves what their funding priorities should be, they might choose to fund sustainable agriculture and energy systems for local self-reliance. They might choose to ensure that everyone has healthy food, a home, healthcare, satisfying work, livable world and a beautiful environment. SLUM-PESA is a community-created credits system with incentive rewards, combining features from successful alternative credit systems, adding a few technology innovations and procedures to ensure a secure, profitable experience for everyone. It is simply a way for slum dwellers to give each other credit in their community, so that, in effect, there is more money to go around. More money for local businesses, more money for the community. You can spend SLUM-PESA and be paid with SLUM-PESA just as with Dollars. In grassroots economy, it's hard to find US Dollars to pay for things. With SLUM-PESA we can fund what we need, without having to depend on US Dollars. At first glance, the SLUM-PESA system looks like a simple payment system. You put US Dollars into your SLUM-PESA account and spend them using your SLUM-Card. Then come the incentive rewards ("slum-pesa") — electronic community credits issued to you whenever you buy or sell something through the SLUM-PESA system. You get $20slum-pesa for signing up and a 10% reward on whatever you buy or sell. One can spend these rewards at any participating business.


SLUM-PESA appropriately named as it is only accepted within the confines of a particular slum— a credits system that traders and service providers are using to do business. Unlike M-PESA, SLUM-PESA payments are accepted for many transactions and therefore represent a complementary currency acting as a means of exchange in urban slums. SLUM-PESA operates alongside the official government issued currency. We anticipate to implement SLUM-PESA in Tanzania, MBAGALA SLUMS for our pilot phase.


Climate change is termed to be the key cause of natural disasters, including flood, earthquake, or hurricane that causes great damage and loss of life. These natural disasters have a significant effect on the economy for communities living in urban slums. For instance, recent hurricanes have exposed millions of people and billions of dollars worth of economic assets to the sorts of hazards that might be expected to increase as a result of climate change. Millions of structures and homes have been destroyed or damaged, with economic losses exceeding billions. Traditionally banks create money, In slum communities, it's hard to find US Dollars to pay for things. Now, how do we minimize economic consequences of climate change? Communities can create money too, With SLUM-PESA we can fund what we need, without having to depend on US Dollars. It is an alternative community-centred credits system that support communities as they adapt and transform to meet the challenges of climate change. SLUM-PESA is designed to serve as the framework for a new economic system that puts people and planet first -- a model easily adopted by individuals and businesses in slum communities. SLUM-PESA is issued as computerized bookkeeping instead of as paper. You can exchange them easily for US Dollars and ultimately even deposit them in an Account. SLUM-PESA tries to support the ability of urban slum communities to identify and articulate their needs to each other – and also to the cities they are part of, both on a day-to-day basis and during emergencies.


  • Yes, for two or more years


  • I’ve worked in a sector related to my idea for between one and two years


  • Yes


Paschal Maduhu is an expert in technology entrepreneurship and business development.He is a software developer,tech enthusiast,trainer and community reformer. Paschal is not affiliated with any organization,he spend most of my time working on web development projects,programming and ICT systems.

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Photo of Paschal Maduhu

Communities Can Create Money Too
Here is a simplified example, to show how we can create money together as a community. Imagine that you are in a community of just six businesses.
Together you issue sixty $10 coupons and agree to accept those coupons as payment for your goods and services. Instead of handing them out to the public, you hand the coupons out as bonuses to employees of the businesses. The employees can then use the coupons like cash, for purchases at any of the six businesses.
Each business will redeem a different number of coupons &mdashabout $100 worth on average. To make it fair, each business is compensated for the value of coupons it actually accepts: they get to pay those same coupons again to their employees or use them to buy things directly from the other businesses. The coupons go around again and businesses settle up again and again by reusing the coupons.
Gradually, you add new businesses and their employees and suppliers to the loop. Together you issue 10 more coupons for each new participant, including employees.
As a community you can also issue some coupons as grants to local nonprofits — and to local entrepreneurs as loans or equity investments.
The coupons in this example and in most local currency systems work just like US Dollars, with two problems: they are only good locally and you can't deposit them in a bank. Our design solves those shortcomings. SLUM-PESA® are issued as computerized bookkeeping instead of as paper. You can exchange them easily for US Dollars and ultimately even deposit them in an Account.