MIT Solve

Solution Overview

Solution Name:

FutureCushion

One-line solution summary:

A USSD, mobile and POS technology which will be used for payment into savings or pension account, and later withdrawals in times of needs.

Pitch your solution.

Individuals in the informal sector often fall through the cracks of existing social protection programs. Being outside of the formal economy, are often ineligible for social insurance programs mandated for the formal sector. They thus constitute the “missing middle”.

Our solution leverage on digital innovation to provide a system that helps the ordinary illiterate trader to contribute to the social security program at ease. The solution aims at developing a USSD, Android, and IOS application for the literate and semi-literate in the informal sector. The illiterates will also contribute to the social security with the help of agents who visits their various workplaces to take their contribution using a point of sale device (POS) running an android application.

The individual in this circle will now be able to have access to similar social security and pension benefits, educational and vocational trainings and scholarships and access to funds irrespective of location.

What specific problem are you solving?

Individuals in the informal sector especially farmers, market women, "trotro" drivers and mates, street hawkers, and other petty traders often fall through the cracks of existing social protection programs. Being outside of the formal economy, are often ineligible for social insurance programs mandated for the formal sector. They thus constitute the “missing middle”. Majority of these individuals spend the little money they get without saving a penny which they later become miserable and finally go out begging or borrowing.

The informal sector in West Africa is a primary driver of economic activity. In Sub-Saharan Africa, 89 percent of employed women and girls are in the informal sector workforce, which accounts for 80 percent of total employment and 55 percent of total GDP.

According to the Ghana Statistical Service, the value of all economic activities recorded in the informal sector which largely involves the buying and selling of various goods, for last year, reached 92.5 billion cedis. This statistics is very impressing but yet, this sector faces a lot of financial problems problems because they are not compelled to pay social security and other future cushions.

Who does your solution serve, and in what ways will the solution impact their lives?

80 percent of the Ghanaian workforce is employed in the informal sector. The sector is characterized by underemployment, bad working conditions, uncertain work relationships and low wages. The majority of which include farmers, street hawkers, market women, "trotro" drivers and mates are living with high income insecurity.

There has been a series of conversation with such people and often times they have nothing to rely on in during old age, taking care of kids education, etc. They often engage in the local savings popularly known as "SUSU" which is high risk because often times collectors run away with their monies. Our solution brings hope to such vulnerable groups by providing a robust, better regulated and secure platform with extra benefits such as educational and vocational scholarships and training.

There would pension fund for such groups during old age.

Which dimension of the Challenge does your solution most closely address?

Deploying features that encourage contributions regardless of literacy and numeracy levels — including in contexts with limited internet coverage

Explain how the problem, your solution, and your solution’s target population relate to the Mission Billion Challenge WURI West Africa Prize and your selected dimension.

Our solution leverages on digital innovation to provide a system, thus; USSD, Android, and IOS application, point of sale device (POS) running an android application that helps both the literate and illiterate to contribute to the social security program and savings at ease even at an area with limited internet coverage at ease.

The individuals in this circle will now be able to have access to similar social security and pension benefits, educational and vocational trainings and scholarships and access to funds irrespective of location through existing services such as Mobile Money.

Where is your solution team headquartered?

Kumasi, Ghana

What is your solution’s stage of development?

Idea: A plan or concept by an individual or organization.

Who is the primary delegate for your solution?

Jephter Kumuyi Danso (CEO)