Techstars Backs Awabah

by | Aug 23, 2021

This article is a Brand Press post. Brand Press is a paid service for brands that want to reach Techpoint Africa’s audience directly. Techpoint Africa’s editorial team doesn’t write Brand Press content. To promote your brand via Brand Press, please email business@techpoint.africa

Awabah, a digital platform providing pension access to Africa’s self-employed, today announced that it has been accepted into the Techstars London accelerator program. The startup is  dedicated to making micro-pension services available to those in the informal sector and those whos employers are not legally required to deduct and remit pension. It will join nine other startups in the class of 2021 and secure funding from the accelerator as it sets its sights on African expansion.

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AWABAH CEO TUNJI ANDREWS

The Lagos-based company, founded by Tunji Andrews, Tina Ajishebiyawo, and Gboyega Olatunde, is building wealth for Africa’s informal, particularly self-employed population by ensuring that they are able to plan for a dignified life after retirement. Awabah launched in November of 2020, signed up over 700 clients in its first two months, and has  been dedicated to advancing the cause for future financial inclusion and security in Africa ever since.The company’s motto is that “people who know better can do better”. This means that building financial literacy is a big part of its customer acquisition strategy. It has leaned heavily on digital town hall meetings to meet, educate and acquire customers. 

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AWABAH AT THE LAGOS TRADEFAIR

In July 2021, the company raised $200,000 in angel backing from early-stage investors like ODBA and Co Ventures and Correlation Capital. This new funding helped Awabah to roll out its services in Lagos and Ibadan. The startup has plans to start providing services in 5 more Nigerian cities over the next 6 months.Andrews believes the company is gathering a lot of acceptance because of its approach to customer acquisition. Operating out of Lagos and Ibadan and about to set up a presence in Ghana. Awabah already sees itself as the solution to Africa’s wealth redistribution challenge. The company has now partnered with 3 Pension Fund Administrators (PFAs) in Nigeria and hopes to increase this to 5 before the end of 2021. The partnerships will coincide with multi-city rollouts to avail millions more access to the AWABAH advantage.

“Awabah in simple terms is an aggregator of wealth creation tools that are sorely lacking on the continent. We onboard the financial service providers, break their products into bite size chunks, sprinkle a bit of the Awabah magic on it, and give this leverage to our customers. What’s even greater is that our services come completely at no charge to the customer. Financial services should liberate, not enslave.” Tunji Andrews said.Off the back of it, the Awabah model has a lot of merit. Nigeria has 70m people in its labor force (People ready to work and able to work) and of this 70 m, 23m are unemployed and another 11m employed in formal jobs; this leaves 36m Nigerians in one form of self-employment or entrepreneurship without any retirement savings. With a serious decline in economic growth and increased scarcity of resources, we believe Africa’s current labor market will face severe hardship in old age if they don’t take retirement savings seriously.Nigerians in the informal sector can see real value by setting aside N100 weekly into a pension fund that is invested at a real return of 4.5% per year for the rest of their working years.According to PricewaterhouseCoopers’ (PWC) “Africa Asset Management 2020” report total assets under management in 12 selected Africa countries were $293 billion in 2008, more than doubling to $634bn by 2014. They are forecast at $1.1 trillion in 2020. (The 12 countries are: South Africa, Morocco, Mauritius, Namibia; Egypt, Kenya, Botswana, Ghana, Nigeria; Angola, Algeria, Tunisia).

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AWABAH TEAM AT THE SAFE BODA OFFICE IN IBADAN

Ajishebiyawo strongly believes that reducing poverty depends on helping those in the informal sector  manage and grow their wealth.  She insists that the reduction is greatly reliant on access to diverse tools to help leverage income that is either infrequent or so frequent it’s spent on daily consumables.

“It’s not that people in informal employment are too uneducated to control their finances. Quite the opposite. They manage highly complicated budgets on very tight margins. Effective retirement planning and savings help our customers more effectively confront the problems that keep them stuck in an inefficient cycle. Nigerians and indeed Africans have money – but their incomes are unpredictable and insecure; Awabah is fixing this.”

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AWABAH TEAM AT THE SAFE BODA OFFICE IN IBADAN
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This Brand Press article wasn’t written by Techpoint Africa’s editorial team. To promote your brand via Brand Press, please email business@techpoint.africa.

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