(A column highlighting scientific, technological, engineering, and design innovation in Africa)
Kenyan technology company Digital Vision East Africa developed Chamasoft, a web application that allows investment groups to automate their financial records and systems.
The word “Chamasoft” comes from the Kiswahili word, “chamas,” meaning “groups.” Chamas are popular in Kenya as a means of pooling resources, obtaining loans, and investing in capital-intensive projects, such as purchasing land, construction, transport services, establishing schools, managing hotels and even buying stocks. They are the origins of such notable names as Transcentury Limited Group, a multi-million-dollar company listed on the Nairobi Securities Exchange that was founded 16 years ago by 29 Kenyans who raised US$280,000 to start an investment company, and the $690 million Thika Greens Golf Estate project.
The chamas evolved from groups traditionally organized by women to save, invest and borrow funds for everything from household and education expenses to starting or expanding a business. Some of these groups acquire thousands of dollars in assets. Similar groups are found in throughout the Caribbean to this day.
Using the Chamasoft application, groups can monitor collection and investment of funds and track group income and expenditure. Its cloud-based software also allows members to view their group accounts on a dashboard.
Digital Vision founder and CEO Martin Njuguna says the service is intended to help chamas overcome challenges such as transparency, communication, and the ability to check their balances and receive automated reminders on group activities. It essentially serves as “an online office” that group members can visit at any time, he says.
Chamasoft also offers free SMS and email alerts and tracks member invitations. The software has automated the processes of issuing and tracking loans and monitoring of Chama assets and liabilities.
“We believe there is a very big opportunity in the market and this has been validated by the fact that financial institutions like banks have come up with specific products for chamas. They have launched chama accounts with specific advantages and financing terms. So, we know the opportunity is there,” Njuguna says.
Groups register for the service at the Chamasoft website, chamasoft.com. Upon receiving a registration notification (via email and SMS), they may invite members to register and personalize their Chamasoft account to indicate how often they meet, upload their current financial records, rules for penalties and loan application files.
Njuguna says his team is working on enhancing the service to allow auditors, banks and financial analysts to use the data collected and stored for auditing, advisory and lending approvals. In April, Digital Vision released the Chamasoft Enterprise edition that allows financial institutions to better manage the records of investment groups banking with them. Plans also are under way for a mobile version.
Chamasoft was officially launched at the 2013 Demo Africa conference in Nairobi, where it was a finalist, and was a prizewinner at this year’s Vision 2030 innovation awards in Mombasa. It also won the Evernote Platform Africa Innovation Award for 2014.
