Impact Flow Insight

More than nine percent of the global population lives in extreme poverty. That is 1 in 11 people living on less than 2.15 $ per day (World Bank). This lack of financial means causes vicious cycles and increases inequalities between wealthy and low income economies, and income inequality within countries. The majority of those living in extreme poverty are unbanked people, people who lack access to financial markets, and are not eligible to receive loans or similar opportunities.

The lack of access to financial markets as well as entrepreneurship education hinders people from underserved communities to start their own businesses or projects. Bridging Gaps aims to reach underserved communities in the global south with limited or without access to financial markets. Globally, there are 1.7 billion unbanked adults (World Bank, 2017), and even those who do have a bank account are not always eligible to receive microloans. 

Since 2022, Bridging Gaps has been dedicated to the mission to empower marginalized communities in Africa through entrepreneurship. At the heart of our collaboration with Isango.ai is the challenge information Bridging Gaps provided for Ishango.ai at the AI Hackton to help with data gathering, since data has the power to revolutionize microfinance and drive social impact by it. 

Through this collaboration, Bridging Gaps identified key data points such as historical payback plans, disbursement amounts, and demographic information, laying the foundation for impactful interventions. By doing this Bridging Gaps gains access to critical resources and expertise necessary for effective data collection and analysis.

The professionals at Ishango.ai rely on a different set of skills crucial for Bridging Gaps. Programming languages such as Python and R enable statistical analysis, while data visualization tools like Looker Studio facilitate the presentation of insights in a meaningful way. 

By embracing machine learning and AI technology, Bridging Gaps can predict repayment rates and forecast loan needs for refugees, women entrepreneurs with varying asset levels and young aspiring entrepreneurs, who could be also struggling with the challenges of limited digital literacy in their communities. To overcome these issues, Ishango.ai is also assisting Bridging Gaps with user-friendly interfaces and visual data collection methods, making it easier for entrepreneurs and NGO partners to participate in data-driven initiatives.

Through advanced data analytics, Bridging Gaps can measure the effectiveness of its microloan initiatives, track payment rates, and evaluate community-level impact so marginalized communities can be reached and assisted while empowering a new generation of entrepreneurs across the global south.

Bridging Gaps is providing innovative community microloans empowering marginalized groups in Africa and Brazil to fight poverty and food insecurity. After successfully partnering with Ishango.ai we are in the process of developing an AI-based data ecosystem and processes from collection to elaboration to help us measure our impact and improve our operations to grow in the African continent and beyond through data. 

Central to this will be the validation of a predictive model for loan repayment rates by Ishango.ai, which will then inform the data model and determine which data need to be gathered, which questions to ask entrepreneurs. Ishango.ai will also help develop an intelligent chat interface for users with state of the art AI technologies to simplify interactions for entrepreneurs and make it easy for them to receive useful recommendations to guide their decisions.

Data from the World Bank shows that around 45% of people living in Sub-Saharan Africa don't have access to a bank account, which means that almost half a billion people lack access to the financial services (Total Available Market). When we look at major marginalized communities, around 40 million internally displaced persons, refugees and asylum-seekers live in Africa, representing almost one-third of the world’s refugee population ( UNHCR, 2023) with East Africa, and Uganda specifically, being at the center of one of the world's largest and fastest-growing refugee crises and are underserved. The majority of these migrants in Africa are young people, women and children. Bridging Gaps is working on  improving such individual’s lives directly and meaningfully.  

They are residents of countries with the highest refugee burdens are: Uganda ( with over 1,512,681 refugees , Sudan (926,433), Ethiopia (921,822), Chad (762,731), DRC (520,073), Kenya (519,353), Cameroon(469,277) (Statista 2023), with refugees, IDPs and asylum seekers being concentrated in big settlement centers located close to international borders. 

Our community microloans dynamics in the past 2 years in Bidibidi Refugee Settlement in Uganda showed us the potential reach of our solution. If we take the total “market size” of around 40 millions refugees, asylum seekers and IDPs in Sub-Saharian Africa, we would have a potential Serviceable Available Market and potential reach of around 960,000 future entrepreneurs and microloans recipients. With the help of Ishango.ai we now have the chance to gather more data about our recipients by addressing their needs using descriptive, prescriptive, and predictive data analytics to revolutionize microloan distribution and charity projects through a comprehensive data ecosystem, data analytics tools, and predictive modeling.

Overall, our solution offers a unique approach to address the challenges Bridging Gaps is facing by providing a data journey that integrates into our operations. It facilitates data-driven decision-making, enhances predictability, and empowers entrepreneurs to maximize the impact of microloans, ultimately bridging the important data gap and facilitating sustainable economic empowerment in Africa and beyond.

Our Bridging Gaps core team includes 8 qualified individuals from different backgrounds and countries. Our founders bring together two worlds: Malish James is a member of Bridging Gaps’ target community: a South Sudanese refugee in Uganda who knows exactly the challenges his community is facing and who is trusted by his community. Janina Peter is from Germany and has ties to international organizations, non-profits, and German and European companies. Together, Malish and Janina created the Bridging Gaps microloan and entrepreneurship education strategy. Malish focuses on identifying eligible future entrepreneurs, conducting trainings, establishing relationships with local mentors, providing high quality photos and videos, and supporting the entrepreneurs in the long-run. Janina’s focus is fundraising, spreading the word about Bridging Gaps, scaling Bridging Gaps, further developing the strategy, and managing the team. Combining these two very different backgrounds and co-developing the solution with the target community makes our team uniquely qualified to address extreme poverty in Bidibidi and beyond. Malish and Janina are joined by four core team members managing operations, finance, fundraising, and marketing. What brings all of us together is our shared passion to tackle poverty and hunger. 

Janina Peter has a background in social innovation and international development. She is the CEO at Bridging Gaps as well as the Head of Innovation at the UN FAO’s World Food Forum. She has worked with large NGOs, such as The Hunger Project, private sector organizations, such as PHAT CONSULTING, and the UN WFP’s fundraising application ShareTheMeal. Janina has a passion for using innovative approaches to reach zero poverty. 

Malish James is the founder of Afri-Youth Network, a UN WFP Storyteller, and a Sudanese refugee in Uganda’s Bidibidi Refugee Settlement. He has joined Bridging Gaps founding team from the beginning, and co-developed not only the concept but also piloted the first workshop in Bidibidi. Malish is passionate about using storytelling to improve the lives of youth in the settlement. 

Danielle Marques brings a strong technical expertise which she has gained from working with IBM for seven years as well as financial knowhow she is currently proving as the Financial Coordinator at Empodera, a Brazilian NGO achieving social transformation through sports. She is part of Bridging Gaps’ founding team and works part-time with its partners and the community in the Brazilian favela Rio das Pedras while gaining her Master’s degree in Entrepreneurship. 

The Ishango.ai team develops and deploys remote data science teams to deliver custom AI & data solutions globally and is supporting Bridging Gaps to propel its operations to new heights while making a meaningful social impact.

Ishango.ai develops custom AI & data solutions for clients world-wide. They empower businesses to harness the full potential of their data, enabling them to drive operational efficiency, improve decision-making, and achieve optimal performance. Ishango.ai consists of diverse and inclusive teams composed of the brightest African talent alongside in-house senior data scientists, delivering unmatched value for money and positive social impact.

We believe the concept of the solution is more aligned with the phase of the project, as it is under development so that is why we chose concept.

After thoroughly researching Solve, we base the reasoning of our application for the 2024 Challenge on the fact that we believe in the transformative power of entrepreneurship to uplift communities in developing countries, and we see Solve as a valuable third partner in advancing our joint mission. Through our partnership with Ishango.AI, we have developed the already mentioned innovative solutions to address the challenges of extreme poverty and financial exclusion in Africa and Brazil.

While our initiatives have shown promise, we recognize the need for additional support to scale our impact effectively. Solve's comprehensive support program offers the resources and opportunities we require to overcome these. 

The workshops and access to in-kind resources such as software licenses offered by Solve would enhance our technical capabilities. This support would make it easier to optimize our data analytics processes, improve operational efficiency, and develop AI-driven solutions to better predict loan repayment rates and optimize microloan impact.

Solve's network of partners includes legal services providers who can offer pro bono support to address any legal limitations we may encounter in our operations. This would ensure that our goals comply with regulatory requirements in new regions with foreign legal systems our organizations are not completely familiar with.

Since Bridging Gaps only started in 2022, it would be very important to us to connect with like-minded individuals, like mentors, and potential collaborators across industries and sectors on a unique platform. The opportunities to network and participate in Solve's flagship events would make it possible for us to create partnerships, gain exposure in the media, and show our impact on a global stage.

Solve's monitoring and evaluation assistance will enable us to track and analyze our outcomes effectively, demonstrate our impact to stakeholders, and continuously refine our strategies for maximum effectiveness. One of our plans for this project is to implement a tool such as Google Looker or Microsoft Power BI to show our impact and prognoses. Here we still have a lot to learn and would benefit from your support. 

By partnering with Solve, we aim to leverage its resources, expertise, and extensive network and with the help of Solve we could achieve greater impact and drive positive change in the communities we serve.

Our solution, Bridging Gaps, stands at the forefront of innovation through its pioneering approach to addressing the pressing needs of refugees and communities living below the poverty line. By leveraging our cutting-edge pay-it-forward model, we empower these marginalized groups to establish social businesses, thereby breaking the cycle of dependency on development aid.

To bring our innovation to the next level, we started a strategic partnership with Ishango.ai, a trailblazer in advanced AI-based technology.

The integration of Ishango.ai's AI-based technology supports the efficiency and scalability of our solution. Through data-driven insights and predictive analytics, we optimize resource allocation, maximize impact, and adaptively respond to evolving challenges. This technological infusion not only enhances the effectiveness of Bridging Gaps but also sets a new standard for humanitarian innovation, inspiring others in the sector to embrace technological advancements for social good.

In simple terms we expect our solution to provide innovative community microloans to empower marginalized groups in Africa and Brazil, thereby combating poverty and food insecurity, through our collaboration with Ishango.ai, by developing an AI-based data ecosystem to revolutionize microfinance and drive social impact.

At the core of our solution is a predictive model for loan repayment rates by Ishango.ai. This model will inform our data collection processes, guiding us on which data to gather and what questions to ask from entrepreneurs in Bridging Gap’s programme. Ishango.ai will develop how to simplify interactions and provide entrepreneurs with valuable recommendations to guide their decisions.

In simple terms, our solution combines AI technology with a deep understanding of the needs of marginalized communities. By accurately predicting loan repayment rates and providing user-friendly interfaces, we empower entrepreneurs to succeed so we can create a scalable approach to tackle extreme poverty and food insecurity in Africa and Brazil.

To effectively measure our progress towards our mission, we have established key impact goals and implemented Key Performance Indicators (KPIs) and measurement methodologies.

Our impact goals are centered around three main pillars: training, business establishment, and sustainable microloan repayment. Firstly, we aim to train individuals from marginalized communities through entrepreneurship workshops and incubation programs. This goal is quantified by tracking the number of participants who have completed our training sessions. 

Secondly, by providing microloans and support to aspiring entrepreneurs, we aim to create sustainable enterprises that contribute to economic empowerment and community development in the long run. We measure the success of this goal by monitoring the number of businesses established through our program, reflecting on the outcomes of our efforts.

Lastly, a fundamental aspect of our model is the pay-it-forward approach, where microloans are repaid by entrepreneurs and passed on to the next individual in the community. This cyclical process not only ensures the sustainability of our program but also strengthens a culture of collaboration and support within the community. We research and measure the effectiveness of this aspect by tracking the number of loans repaid and paid forward, indicating the program's ability to create a ripple effect of positive impact.

To measure our progress towards these impact goals, we utilize a Theory of Change framework and Objectives and Key Results (OKRs). These frameworks provide a structured approach to setting objectives, tracking outcomes, and adjusting strategies based on data-driven insights. Our main KPIs include the number of people trained, the number of social businesses established, and the number of loans paid forward.

Data collection and updates are facilitated by our on-the-ground partners, such as Malish James and the Afri-Youth Network in Bidibidi, who gather information regularly, typically on a monthly basis or after significant events like training sessions. This data-driven approach allows us to track progress over time, identify areas for improvement, and make informed decisions to better our impact.

The core technology that powers our solution developed by Ishango.ai is a sophisticated integration of Data & Software Engineering, AI & Machine Learning, and Analytics & Dashboards:

1. Data & Software Engineering forms the foundational backbone of our solution. We employ rigorous data model design and implementation techniques, including ontology development, to structure and organize complex datasets effectively. This ensures that we capture relevant information in a systematic manner, facilitating accurate analysis and decision-making. Additionally, our expertise in data architecture definition and optimization, such as utilizing Graph DB, enables us to create scalable and efficient data ecosystems. We prioritize data health checks and unit testing protocols to maintain data integrity and reliability throughout our systems. Furthermore, we embrace continuous integration and deployment practices to streamline development processes, ensuring agility and responsiveness to evolving needs.

1. AI & Machine Learning capabilities drive the intelligence behind our solution, empowering us to derive meaningful insights and predictions from vast datasets. We leverage advanced techniques such as anomaly or object detection to identify irregularities or patterns of interest within data streams. Forecasting and predictive modeling algorithms enable us to anticipate future trends and outcomes, guiding strategic decision-making and resource allocation. Our recommendation engines leverage machine learning algorithms to personalize suggestions and interventions, optimizing outcomes for individuals and communities. Moreover, Natural Language Processing (NLP) capabilities enable us to extract valuable insights from unstructured text data, unlocking hidden knowledge and enabling more informed decision-making.

1. Analytics & Dashboards serve as the interface through which users interact with and derive value from our solution. We develop visual analytics solutions that empower users to explore and understand data intuitively, facilitating data-driven insights and actions. Management Interface (MI) Dashboards provide stakeholders with a holistic view of key performance indicators and metrics, enabling informed decision-making and strategic planning. Our recommendation engines extend to this domain, delivering personalized insights and recommendations tailored to user needs. Additionally, automated reporting capabilities streamline reporting processes, enabling users to generate custom reports and communicate insights effectively.

Currently 3 full time employees, 2 part time staff and 5 interns work on our solution team from Bridging Gaps partnered with 3 full time employees and 2 hackathon participants from Ishango.ai.

We started working on our solution 6 months ago.

We do not only have a very high proportion of women, but given our hybrid form, we are able to involve very diverse people and experts from all over the world in our teams including young people, like university students as interns. Our employees come from Europe, Africa and South America counting over 8 nationalities. Over 30% of these have a refugee background ( including our agents and volunteers on the ground in Africa). With a core team from various backgrounds and countries, including our founders, we combine a blend of skills including growth marketing, inclusive finance, and software development.

Key Resources:

1. People: Trained staff and volunteers are essential for identifying entrepreneurs, managing loan distribution, and providing training & services.

2. Finance: Donations from private sector companies, individual donors, and international organizations provide the necessary funds for microloans and operational expenses.

3. Access: Partnerships with local NGOs, governmental institutions, and foundations grant access to additional funding, and resources.

Key Stakeholders:

1. Local NGOs: Crucial for identifying entrepreneurs, providing on-the-ground support, and organizing trainings.

2. Donors: Individuals, companies & international organizations.

3. Entrepreneurs: Key microloan recipients, training, and mentorship. 

4. Governmental Institutions: Regulatory compliance & access to resources.

Cost Structure:

1. Microloans: Primary expenditure covering funds disbursed to entrepreneurs.

2. Operational Expenses: Staff, training materials, digital platform maintenance & administrative costs.

3. Partnership Fees: Associated fees for collaborating with local NGOs, governmental institutions, other organizations.

4. Scaling Costs: Investments in expanding operations, increasing outreach, exploring new technologies, and enhancing impact measurement capabilities.

Key Activities:

1. Identifying Entrepreneurs: Outreach & assessments.

2. Microloan Distribution: Facilitating the distribution of microloans to entrepreneurs within community loan groups.

3. Training and Support: Providing training, mentorship, and ongoing support to entrepreneurs to build their businesses.

4. Digital Platform Development: Developing and maintaining a digital platform for donations, impact tracking, and donor engagement.

Type of Intervention:

Bridging Gaps' intervention is service-based, offering microloans, training, and mentorship, to entrepreneurs in marginalized communities.

Channels:

1. Digital Platform: Donor engagement and collection, impact tracking, and stakeholder communication.

2. Local NGOs: Partnerships, community outreach, entrepreneur identification, and program delivery.

3. Events and Workshops: Training sessions, workshops, and community events to engage entrepreneurs and stakeholders.

Surplus:

1. Capacity Building: Investing profits in enhancing staff skills, expanding outreach, and improving program delivery capabilities.

2. Technology Enhancement: Allocating funds to improve digital platforms for better impact tracking and engagement.

3. Scaling Initiatives: Investing in expanding operations, reaching new regions, and serving more marginalized communities.

Segments:

Beneficiary:

- Entrepreneurs in Marginalized Communities: Individuals in underserved areas who lack access to traditional financial services and resources. They benefit from microloans, training, and support to start and grow their businesses, leading to economic empowerment and improved livelihoods.

Customer:

- Donors and Funding Organizations: Individuals, private sector companies, international organizations, and governmental institutions who contribute financial resources to support Bridging Gaps' initiatives. They pay to address the issue of poverty and economic inequality by funding microloans and capacity-building programs for marginalized entrepreneurs.

Value Proposition:

Impact Measures:

- Economic Empowerment: Bridging Gaps demonstrates social impact by measuring the economic empowerment of entrepreneurs through key indicators such as business growth, income generation, job creation, and poverty alleviation within marginalized communities.

- Sustainable Development: By implementing a pay-it-forward model, BG creates a sustainable ripple effect within communities, fostering long-term economic resilience and independence among entrepreneurs and their families.

Customer Value Proposition:

- Social Impact: Donors contribute to meaningful social impact in marginalized communities. We offer them the opportunity to support sustainable initiatives that empower entrepreneurs and drive socio-economic development.

- Transparency and Engagement: We provide continuous updates, impact reports, and storytelling through our digital platform. 

Revenue:

Donations 100%

Our plan for financial sustainability revolves around building strategic partnerships as a non-profit organisation. We aim to help our recipients set up sustainable businesses in their communities, ensuring their long term success while making sure they are staying ethical. We make sure to achieve this goal by using donations and grants, corporate sponsorships, crowdfunding, revenues from services, social enterprise initiatives and investment capital.

We secure funding from institutional donors, philanthropic foundations, and government agencies that align with our mission. We've already demonstrated success in this area with partnerships such as UNHCR. 

We also shift the power to the loan recipients, meaning they are in charge of paying back the loans to the next entrepreneur, identifying and inviting additional group members and circulating the loan within their community and all microloans provided by Bridging Gaps stay within the community groups, creating a ripple effect.  We receive donations that we forward to the local entrepreneurs - only there the money is transformed into a microloan. The loan is never paid back to Bridging Gaps or the initial donor, but stays within the community loan group, being paid "forward" to the next entrepreneur so this way, we establish sustainable financial structures.

Current substitutes are banks, which often do not work with our target group, or organizations with high interest rates. There is an additional microloan project in Bidibidi, however, they have a very different approach. If there is no other option, our target group simply doesn’t receive a loan or start a business.

Within our programme there is no risk of indebtedness for recipients - if a loan can't be repaid, Bridging Gaps works with recipients to improve their concepts and books the first loan under donations. We take good care of our close relationships with the loan recipients - they receive entrepreneurship training, coaching and long-term mentorship, for example by Malish being present in uganda. There is an attractive "match" function for private sector donors and by this  companies can select which thematic area and which region they want to support. Our approach is human-centered - co- developed with our target community.