A newly released report titled ‘Increasing Financial Inclusion in Egypt’s Garment Sector through Responsible Wage Digitalization: Benefits for Workers and Business’ outlines the transformative impact of the initiative. The Egyptian garment industry is a cornerstone of the nation’s economy, employing millions of workers, 40 per cent of whom are women. However, cash-based wages have created significant financial management obstacles, especially for women, affecting their ability to save and contributing to low financial resilience.

The partnership between the Mastercard Center and RISE has made considerable strides in addressing these issues through responsible wage digitalisation and financial literacy training. According to the report, 93 per cent of workers are now paid via a digital account, a significant increase from the 51 per cent at the programme's start. Workers also reported a 34 per cent point increase in their preference for receiving payments digitally. Additionally, mobile money usage for merchant payments, remittances, airtime top-ups, and bill payments saw a 19 per cent point rise, as per the report.

The initiative has not only helped workers better manage their finances but also increased their savings by 14 per cent points, strengthening their financial resilience. Employers have also benefited, with a 53 per cent reduction in payroll administration costs, demonstrating the efficiency gains from wage digitalisation.

Factory managers participating in the programme were provided with tailored guidance on digitising their payroll systems. Workers, in turn, received financial literacy training from the Center for Development Services (CDS), the programme implementing partner. The training, delivered through a peer educator model, focused on building essential money management skills such as financial planning, budgeting, saving, and decision-making.

Special attention was given to gender-sensitive financial literacy, ensuring that women were equipped with the knowledge and confidence needed to manage their finances effectively. This focus on financial capability is a critical component of wage digitalisation, empowering workers, particularly women, to achieve long-term financial resilience.

The success of this project offers a unique opportunity for the financial and garment sectors to collaborate further, with the potential to scale wage digitalisation and financial literacy benefits across Egypt’s 2.5 million garment workers. Moreover, this initiative has demonstrated the potential for increasing efficiency and transparency in global supply chains, a growing priority for the garment industry.

"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. The project has demonstrated the transformative effects of responsible wage digitalisation, not only increasing financial inclusion and health but also boosting business efficiency. This initiative in Egypt is a key step in realising our vision for cashless societies, and we look forward to expanding our impact across the garment industry," said Inji Borai, vice president and country manager, Mastercard, Egypt.

"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," said Christine Svarer, executive director at RISE.

Fibre2Fashion News Desk (DP)