Since the launch of the eQub app, the platform has registered more than 10,000 users and is working towards integration with banks in Ethiopia. AMAKA had a chat with Yohana Ermias, the co-founder eQub, to discuss the journey so far, how it has shaped her, and the work that lies ahead.

eQub is one of the startups in Ethiopia that has no trouble leveraging Ethiopian tradition. The platform is a savings and credit-accessing app funded in 2020. The software merges traditional, communal saving and credit systems with modern technological tools.

Traditional money-saving systems in Africa involve members of a group contributing a fixed sum monthly and taking turns to collect the entire contribution on a rotational basis. However, this ingenious system becomes innovative when paired with technology like eQub, a software developed by Ermias and her partner Alexander Hizkis.

Transitioning To Coding

Ermias' fascination with coding inspired her to invent eQub. She got introduced to coding in college by a friend who showed her the prototype of an app he was designing. The idea of identifying a specific problem area and developing a solution for that through seemingly random and incoherently ordered lines of letters and numbers amazed Ermias.

After two years, she decided to learn the basics of coding and applied her self-taught skills to implement entrepreneurial goals. She believes technology is an effective tool to uplift people society has long held down for long. The entrepreneur says it is easier now to equip oneself with the skills and resources necessary to break free from outdated and asinine hierarchies than it ever was.

She sees hope for young Ethiopian girls who have realised that they do not need permission from anyone to pursue their dreams. This idea inspired her to start coding, a field she never expected to find herself in. So she started with a laptop computer and free online courses to set herself on the entrepreneurial path.

Although Ermias encountered setbacks in her initial endeavours, this motivated her to give her best. "The failures were signs that I was not thinking big enough," she says. During this period, her partner, Hizkias, informed her about his plan for eQub and recruited her.

Ermias recalls the tasking process of developing eQub in a county with little digitisation. However, despite the financial challenges in Ethiopia and the gruelling work hours, she reflected on the prospect of creating something that positively impacts people's lives.

Now, after the first phase of the launch of the app, the fast-growing platform has more than 10,000 followers. What makes eQub unique and preferable to both formal and informal financial systems is accessibility. The app has drawn people who do not see the need to use the banking system and are too westernised to use traditional saving and credit methods.

The platform provides access to a wide range of social and economic groups, unlike traditional saving systems where people are limited to geographic location and social circles. eQub affords users the luxury of choice and the opportunity to make unconstrained financial decisions. This flexibility saves users from being stranded without access to financial systems. 

eQub is digitaly regulated

The app allows young Ethiopians to participate in the economy at a minimal level. The accessibility of eQub makes it attractive to young and regular users. One of the characteristics of eQubs that differentiates it from other financial systems is that it is entirely decentralised.

One edge eQub has over traditional saving systems is digital regulation. One of the ways the app does this is through the use of 'eQub points.' These are ratings that are affected by the timeliness of payments, conduct, how many eQubs a person is involved and their performance in each. These ratings create a system of accountability where users can reap the rewards of enhanced accessibility while avoiding the pitfalls that may come with unfamiliar faces.

In addition to rating points, the software features digital characters that are modified to fit users' specific social and economic backgrounds. Two of these avatars are Kebede and Tsehay.

While Kebede represents a person from the more rural parts of Ethiopia and works in the country's agricultural sector, he is in his 40s and has a very rudimentary understanding of technology. 

Tsehay, on the other hand, represents the young. The relevance of these personas is not only aesthetic; the information used to create the personas influences accessibility and interface. For example, some users who like Kebede might receive tutorials, continuous hints, and shortcuts, while others who choose Tsehay can skip this altogether. More importantly, the personas filter for eQubs match the user's needs.

Despite all the progress made by Ermias and Hizkias in developing the app, more work still needs to be done. Hizkias says their expansion plans have hit several brick walls because of the Ethiopian financial system. 

Despite all the progress made by Ermias and Hizkias in developing the app, more work still needs to be done. Hizkias says their expansion plans have hit several brick walls because of the Ethiopian financial system.

While they are currently working to establish partnerships with banks and other financial institutions in the country, Ethiopia's regulatory system, especially concerning private financial institutions, has hampered their efforts.

This challenge is compounded by private network systems that are ill-equipped to handle the level of sophistication that eQub brings, especially in terms of synchronisation with the online banking platforms of prominent banks.

Ermias explains that she and her team have much work to do regarding the future development of the eQub. Finance is also a challenge for the company; at the moment, the firm runs on funds from the founders and small investments. However, Ermias says this may change with the involvement of potential investors. 

eQub stands out from other emerging fintech companies in Ethiopia as the only platform in the country that functions like a savings platform outside banks and microfinancing institutions.

The platform is geared toward breaking new barriers based on the current number of users. However, Ethiopia's business and investment ecosystem might be a hurdle to scale. But despite these challenges, the eQub team believes that the company is built on the idea that if the system does not disrupt itself, it is up to those that see bright horizons to cause that disruption.