Informal cross border trade is one of the oldest forms of trade across Africa. It employs millions of people majority of them being women and youth.
Research carried out by the African Development Bank (AfDB) shows that cross-border trade is a source of income to millions of people across the African continent. Uganda alone has thousands of informal cross border traders plying their trade in border towns such as Malaba, Busia, Mutukula, Elegu, Katuna, Mirima, and Goli.
However, majority of these traders are faced with several challenges such as lack of market information, absence of interoperable payment platforms, counterfeits and fake money, and cases of mistreatment at the borders.
Nonetheless, innovators, government and development partners are working to mitigate, somewhat put an end to these issues. One way they are doing this is through developing digital platforms to support this kind of trade. Among such platforms being used by cross border traders in Uganda is iSOKO.
“In 2016, Trademark Africa conducted a research on why informal women cross border traders where losing a lot of money while conducting their business. This research revealed that the women traders were losing money due to lack of market information. That is how iSOKO came about with letter I standing for digital or internet and Soko meaning shop. So, Isoko simply means a digital/online shop,” Rogers Mwesigwa the ICT Technical Assistant for iSOKO, Uganda Chapter explained the genesis of this platform.
He added: “But on top of providing the traders with information, iSOKO also added more modules including the market module that enables traders to display and sell their products from wherever they are. As of today, iSOKO is being used in five countries – Uganda, Kenya, Tanzania, Rwanda and Burundi. There is a plan to expand Isoko allover Africa with focus on the countries that Trademark Africa has presence in so that Africans can have an online shop that allows them to trade with in two or more states.”
Mwesigwa noted that iSOKO APP is downloadable on Google Play after which a trader can register and start trading in addition to accessing relevant trade facilitation information.
“After downloading and registering, the trader can then post their products. When a potential buyer sees the products, they place an order and the trader receives a notification. There is an in-chat APP within iSOKO that enables the trader and buyer to chat and negotiate. The APP also provides market information, daily exchange rate and information about taxes as well as a tax calculator.”
He revealed that iSOKO currently has over 80,000 users from allover the five countries with these numbers expected to grow to about 120,000 by the end of the year.
“When we started this platform, we focused on women. So, majority of the traders on the platform are women. However, we know that trade is not a one sex affair so we also onboard male traders.”
iSOKO has featured on Day 33 of the annual 40 Days 40 FinTechs initiative Season 5.
Run under HiPipo’s Include Everyone program that also encompasses other initiatives such as FinTech Landscape Exhibition, Women in FinTech Hackathon, Summit & Incubator, and the Digital and Financial Inclusion Summit and Digital Impact Awards Africa; the #40Days40FinTechs platform aptly provides a setting for the various players and stakeholders involved in digital and financial technology to exhibit their products and services. It also gives players a platform to share their ideas on how the unserved and underserved by the present financial systems can be brought into the fold.
With over 150 participants in the last four years, #40Days40FinTechs continues to be the world’s premier showcase event for innovations that are enabling underserved populations to join the digital economy space. We know that this can only get better owing to the inspiration and collaboration of our partners; Level One Project, Mojaloop Foundation, INFITX, Cyberplc Academy, Ideation Corner, and Crosslake Technologies. Most importantly, the initiative owes its continued success to the generous support of the Bill and Melinda Gates Foundation.
