Digital credit is reshaping financial behaviour in Africa. From micro-retailers to smallholder farmers, millions are turning to mobile-enabled lending to finance their businesses, pay for school fees, and navigate everyday financial shocks. Wilfred Wabwire, Regional Manager for East Africa at JUMO, unpacks this powerful and complex shift.
Across Uganda and the broader continent, digital credit adoption has surged, fuelled by mobile phone penetration and vibrant mobile money ecosystems. Products like MTN’s MoSente now serve 2.7 million users, and Wewole has reached 7 million borrowers and 134,000 agents, a clear indication of strong demand for fast, convenient financial access.
At JUMO, our 2024 customer survey shows a diverse and highly productive customer base:
- 64% of the customers we reach are MSMEs
- 33% use their loans for business
- Women make up over 30% of borrowers
- 11% earn income from farming
- Borrowing needs are varied and essential:
- 18% borrow for tuition
- 16% for emergencies
- 10% for medical needs
- 9% for bill payments
Digital credit has become more than a convenience; it is an economic enabler. But growth brings challenges that require careful stewardship.
Finding the balance between regulation and innovation
One of the biggest questions facing the industry is how to protect consumers while still enabling innovation. The most effective approach lies in collaboration. Regulators play a crucial role by designing enabling regulations alongside industry stakeholders, harmonising frameworks across borders to avoid arbitrage, and keeping communication channels open to understand emerging business models. They also drive financial literacy, as seen in JUMO’s 2024 pilot credit education courses, which resulted in a 28% increase in voluntary repayments among customers who completed the training.
At the same time, industry players (including JUMO) must match this effort by fully adopting consumer protection guidelines and prioritising transparency through clear terms, accessible language and responsible data practices. Strong internal governance, independent oversight, and active participation in self-regulation all help set higher standards for ethical innovation. Building effective consumer feedback loops and redress mechanisms is equally essential.
Ultimately, innovation becomes meaningful only when consumers are protected, informed and empowered.
New Models for more affordable and inclusive digital credit
To deepen the impact of digital credit, particularly for low-income and rural communities, we need models that drive down cost, increase sustainability, and expand access.
We’ve focused on three key opportunities:
1. Alternative data for better decision-making
Mobile money activity, utility bill payments, and behavioural patterns provide richer, more accurate insights into creditworthiness for customers without formal credit histories.
2. Diverse, lower-cost funding pools
In 2024, JUMO launched Africa’s first e-money Asset-Backed Securitisation (ABS) in partnership with Standard Bank. Expected to benefit over 500,000 entrepreneurs, this innovation enables access to lower lending rates directly via mobile devices.
3. Embedded financial education
Financial literacy is one of the strongest predictors of responsible borrowing. At JUMO, we integrate credit education directly into customer interactions, helping borrowers build confidence and improve financial outcomes.
The future of responsible digital credit in East Africa
The future of digital credit in East Africa is about meaningful growth, growth that puts people first. This includes using alternative data responsibly to broaden access, ensuring lending remains clear and transparent, establishing harmonised regulation across markets, and investing in customer education. It also requires strong collaboration between regulators, fintechs, banks and mobile money operators to build an ecosystem that truly works for consumers. As digital credit becomes part of everyday life, the choices we make today will determine whether it supports inclusion or deepens existing gaps. At JUMO, our commitment to fairness and transparency guides every decision, and being named FinTech of the Year at the 2025 Digital Impact Awards Africa reinforces that responsible innovation is both possible and powerful.Why responsible digital credit matters to me
Working in financial services across East Africa has shown me that credit is more than just a product; it’s often the bridge that keeps dreams alive. I’ve met entrepreneurs who rely on small, timely loans to keep their businesses running, farmers who borrow to secure essential inputs, and parents who use digital credit to keep their children in school. These experiences make one thing clear: responsibility is not optional. Financial inclusion should uplift people, not expose them to new risks. As JUMO expands across the African continent, we remain focused on one core mission, building financial services that are accessible, ethical and genuinely empowering.
