Date: 19-10-2022

Digaf Microcredit Providers, a technology-driven micro-finance institute, has signed a Memorandum of Understanding (MoU) with the Ethiopian Ministry of Labor and Skills (MoLS). The partnership allows MoLS and Digaf to facilitate access to affordable digital loan products for low- and medium-income individuals with the aim of enhancing financial well-being. The announcement of the partnership coincides with Digaf’s launch of Demoz, a digital loan product that extends salaried professionals a short-term and unsecured advance on their upcoming earnings.

The strategic partnership will enable MoLS and Digaf to facilitate suitable loan packages to the underbanked segment of the population, though un-collateralized and quick access loan options. Menen Melese, the CEO of the Ministry of Labour and Skills, stated the agreement with Digaf allows the Ministry to work towards its aims of enhancing job creation and employee welfare by facilitating financial inclusion.

Access to affordable loans will ensure the creation of job opportunities by expanding enterprise investment in national focus areas of agriculture, mining, manufacturing and construction, hotel, and tourism services, as well as ICT and technology. Loans provided to employees will support their economic condition and overall well-being, increasing production and productivity along the way.

Dereje Turi, the CEO of Digaf Microcredit Providers, stated that Digaf aims to provide financial relief to middle to lower-income individuals through the application of technology in the financial sector. He noted that Demoz enables employees to access their salaries in advance with the ability to pay back in up to 15 months. MoLS employees will be among the first to benefit from this loan service. Ato Dereje also stated that Demoz is their first product aimed at digitalizing the microfinance sector and that there are more developments in the pipeline. Digaf’s digital product offerings will include buy now, pay later financing and targeted loan products for micro, small, and medium enterprises (MSMEs)

 










Read also

Local Production of Edible Oil Gets USD 21 Million Boost

Norfund and a consortium of private investors managed by 54 Capital announce USD 21 million growt...





Read also

Gates Foundation CEO Announces Largest-Ever Annual Budget

The Bill & Melinda Gates Foundation CEO Mark Suzman announced the foundation will spend US$8....





Read also

Implementing the AfCFTA Agreement will Boost intra-African Trade and Industrialization

The implementation of the African Continental Free Trade Area (AfCFTA) should be expedited as the...





Read also

Japanese Venture capitalist to invest in Ethiopian startups with a $100 million budget

The Tokyo-based venture capital firm Inclusion Japan (ICJ) in partnership with the early-stage st...





Read also

Kassmasse Brings Home a Win from AFRIMA

Kassmasse wins Best Male Arits from East Africa at the 8th AFRIMA for his Sewasew song. The award...





Read also

10 Million Healthcare Workers Shortage by End of Decade

The shortage of healthcare workers could rise to 10 million by the end of the decade, affecting a...





Read also

D!NK TV to be Creatives Playground

D!NK TV is a digital media platform and ecosystem exclusively dedicated to connecting local Ethio...





Read also

AFRIMA Launches #HopeForSomalia Campaign

In line with its philosophy and character as an impact-driven social initiative, the All Africa M...





Read also

Fuel Price Goes Up

New fuel price has been implimeteded since January 8, 2023, according to the Ministry of Trade an...





Read also

Boosts for African Tech Entrepreneurs’ place in Global Marketplace

Exporting to international markets is a powerful way for African tech startups to increase their ...

About Us

Zare Journal is a Pan-African Digital Media, based in Addis Ababa, Ethiopia, that aggregates news primarily on the African Continent.

Follow us on our socials to get updates and even more Zare content.

Contact Us

Zare Journal is a Pan-African Digital Media based in Addis Ababa, Ethiopia, that aggregates news primarily on the African Continent. Follow us on our socials to get updates and even more Zare content. For inquiries about placing advertisements and advertorials as well as publishing press releases, contact us at zarejournalmedia@gmail.com or call us direct/ WhatsApp at +251911400876