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Alajo Project: Mobile Credit for young girls to kick-start entrepreneurship endeavors

ALAJO aims to empower rural&urban slum young girls (15-24 yrs), with vocational skills, make them banked using mobile technology.

Photo of RainbowGate Foundation
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Opportunity Areas – Select those that apply

  • Innovative Finance

What specific problem(s) are you trying to address? (300 character limit)

2.5 billionPeople lack access to financial services &capital; the majority of them are women. Most rural/urban slum women lack skills to succeed in their business,also they lack access to finance to fund their business,they cannot access finance because of barriers like collateral,bank account, etc

What are some of your unanswered questions about the problem(s) you are working to address? (500 character limit)

Howe do we effectively scale the project to go across the African borders?

Who are your end users? (1000 character limit)

Alajo will target young women in rural and urban slums. For example, an urban slum woman called Veronica (21yrs) with no skill to generate income, gets to know ALAJO through her friends recommendation STEPS 1. She attends our vocational skills acquisition training. 2. She is taught how to manage a business successfully using our Business Toolkit . 3. Her mobile phone number is turned to her mobile account using Mobile Money and linked to a MasterCard ATM card. 4. She is given a loan, which is paid into her mobile account to start a business. 5. She withdraws the money from an ATM machine using her MasterCard. 6. She pays back with interest weekly for 6 months. 7. Gets another loan in her mobile account after repayment is completed.

Explain your idea. (500 character limit)

Alajo aims to provide access to finance for rural and urban slum women the so called "unbankable" by formal financial institutions to help break barriers in accessing finance. Loan recipients get low interest loans in return for signing up for behavioral conditionalities designed to create impact on their success in business. Their mobile phones numbers are turned to their mobile accounts, loans are given to them through their mobile accounts. So they do not need a formal bank account.

What is your value proposition? (500 character limit)

ALAJO empowers young women, with vocational skills, make them banked using mobile technology to reduce financial exclusion and also provides Behaviour Modified Loans to help break barriers in accessing finance so they can start or sustain their businesses. Alajo also teach them how to keep their books in business using its Business Toolkit, which teaches them how to record sales, expense, stock etc

What's different about your idea compared to current solutions? (500 character limit)

The major organization addressing this problem in Nigeria is LAPO. They do not empower their women with skills to generate livelihood income, they do not teach women financial/business skills to help manage their businesses, because of this their business fails and loans given cannot be paid back. Also they do not give out loans using a mobile account as we do. AlAJO is changing the this by not only training women but engaging them via technology.

What are the key reasons why end users would turn to your organization over another?

  • Newness: Satisfying a new set of needs

How would you measure the impact your idea has on your end user(s) ? How will you measure the success of your program? (500 character limit)

In the next 5 years we hope to have helped over ten thousand poor young women in different states of Nigeria with fund for their businesses by leveraging on Mobile Technology and Innovation. We hope to have presence in 15 out of the 36 states in Nigeria, providing access to finance for at least 1000 poor young women in each different states, to achieve this we will work with relevant stakeholders and partnering organizations.

What strategies will/are you testing to acquire end users? (300 character limit)

-community outreach first in Ogun state to run effective pilot then gradually spread -Outreach to young women via Bulk SMS -Reach out to churches/mosques to engagement young people

Key partnerships - Who will you partner with to make your idea work? (500 character limit)

-Mobile phone operators -Banks Technology operators etc

What is your organization’s name? (150 character limit)

Rainbow Gate Foundation

Tell us more about you: (750 character limit)

We are a nonprofit organization in Nigeria working to ensure that more women are giving opportunity to thrive and be successful

Organizational Characteristics

  • Youth-led organization
  • Locally/community-led organization

Where will your idea be implemented? (200 character limit)

Nigeria

What do you need to get started? (500 character limit)

-Funding support -Technology and design support

Experience in Implementation Country(ies)

  • Yes, for more than one year.

Expertise in Sector

  • I've worked in a sector related to my idea for more than a year.

Organization Location (200 character limit)

Nigeria

What is your organizational status?

  • We are a registered non-profit, charity, NGO, or community-based organization.

What is the maturity of your innovation?

  • Early Stage Innovation: I am exploring my innovation, refining, researching, and gathering inspiration.

Website

www.rgfn.org

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