Mastercard, RISE see major success in wage digitalization for Egypt's garment workers
Updated 9/8/2024 3:15:00 PM
Arab Finance: The Mastercard Center for Inclusive Growth and RISE have announced significant progress in their joint wage digitalization project in Egypt, as per an emailed press release.
The initiative, launched in 2019, aims to improve financial inclusion and resilience among garment workers. So far, it has expanded to nine factories across five governorates, benefiting over 24,000 workers, 43% of whom are women.
A new report titled "Increasing Financial Inclusion in Egypt’s Garment Sector through Responsible Wage Digitalization: Benefits for Workers and Business" highlights the positive changes resulting from this project.
The garment industry, which employs millions in Egypt, relies heavily on cash payments. This has posed financial challenges, especially for women, making it difficult to manage finances and save.
The partnership's efforts, which include financial literacy training, have addressed these issues. According to the report, 93% of workers are now paid through digital accounts, a sharp increase from 51% when the program started.
There has also been a rise in the use of mobile money for payments, with 34% more workers preferring to be paid digitally. Workers have also reported a 14% increase in savings, boosting their financial security.
Additionally, employers have benefited from a 53% reduction in payroll administration costs, demonstrating how digital wage systems are creating efficiencies for businesses while improving workers' financial health.
"Our partnership with RISE not only empowers workers, particularly women, but also aligns with Mastercard’s vision of advancing financial inclusion and building a digitally inclusive economy," Inji Borai, Vice President and Country Manager, Mastercard, Egypt, said.
Meanwhile, Christine Svarer, Executive Director at RISE, commented, "Paying workers digitally, when supported with gender-focused financial literacy training, increases financial inclusion and improves workers’ financial health. This has many positive knock-on effects for workers and their families, as clearly demonstrated by the results of this successful program in Egypt."
Related News
