Ride-hailing app Yango has partnered with COFINA, a leading microfinance institution, and Yabx, an embedded finance platform, to launch a lending solution for gig drivers in Côte d’Ivoire.
According to the announcement, the in-app loan would be called the “Driver Cash Advance” service.
This service provides drivers access to short-term loans of up to 300,000 CFA ($500) directly via the app, that can be repaid over 2-8 weeks.
“We are excited to partner with COFINA and Yabx to support our community,” says Kadotien Soro, Yango’s Country Manager in Côte d’Ivoire. “By providing this lending service, we empower drivers to invest in their businesses and achieve their goals. This is a valuable opportunity, and I encourage all beneficiaries to utilise these funds responsibly for growth.”
This partnership tackles the financial accessibility gap in Africa’s gig economy. In countries like Zambia, Ghana, and Senegal, where Yango operates, informal workers often face barriers to essential services like loans due to their classification as high-risk by traditional financial institutions.
Yabx’s innovative technology harnesses AI and machine learning to assess creditworthiness through digital footprints, making it possible for drivers with limited credit history to access formal loans.
“This partnership with Yango is a significant step in our mission to provide financial services tailored for emerging markets,” says Puneet Chopra, Chief Growth Officer at Yabx. “By embedding lending within the Yango platform, we are breaking down barriers to financial access and offering users a convenient way to access capital.”
COFINA, known for advancing financial inclusion across West and Central Africa, is providing the necessary financing for this initiative.
Amed Sié TOURE, Managing Director of COFINA Côte d’Ivoire, highlights their dedication to backing the digital economy: “This partnership represents a significant step forward in offering financing solutions tailored to the needs of Yango drivers. We are proud to contribute to a more inclusive and resilient digital economy in Côte d’Ivoire.”
The gig economy, particularly in transportation, is seeing substantial growth. In fact, the U.S. Bureau of Labor Statistics projects nearly 387,000 new jobs in transportation and warehousing by 2033, a clear indicator of the sector’s expanding role in the economy.
Yango’s Driver Cash Advance service responds to this growth by offering drivers in Côte d’Ivoire flexible loans which will in turn enable them better to manage cash flow, expenses and more importantly, focus on their work.
This partnership mirrors one introduced by mobility fintech company Moove in 2022, which uses real-time earnings data to offer personalised loans to gig workers.
By tailoring credit access to actual income, Moove has shown how financial solutions can better support gig workers, a concept now extended through Yango’s new initiative.
