New WhatsApp EFD innovation to combat tax loss

Dar es Salaam. As technology continues to evolve in business, a 25-year-old Kalebu Gwalugao has developed a system that enables businesses to operate via WhatsApp and issue electronic fiscal receipts (EFDs) to customers.

Mr Gwalugao shared his innovation during a business idea pitching competition organised by Harambee Startup, a company supported by the Serengeti Angels network of local investors.

Speaking during the event, Mr Gwalugao explained that he created the system after noticing the challenges faced by online traders, particularly on Instagram, such as the inability to issue sales receipts, which contributes to tax revenue loss.

"Many people informally run businesses on Instagram, advertising products, but they don’t issue sale receipts,” he said.

He said with his 'Ghala,' system, business owners can communicate with customers via WhatsApp, send the requested product, and provide an integrated EFD receipt linked to the Tanzania Revenue Authority (TRA), ensuring tax contributions.

Furthermore, he highlighted that his system would also reduce the issue of businesses with thousands, but fewer than 40 of them being actual buyers, noting that with WhatsApp, business owners can directly engage with customers.

Serengeti Angels founder, Mr Rodrick Msechu, explained that their network aims to build a community of young entrepreneurs.

He noted that this was the seventh event and that the funds raised from entry fees were awarded to winners.

"While the financial rewards may not be significant, the most valuable aspect is connecting young entrepreneurs with various stakeholders, including local and international investors," said Mr Msechu, adding that the company has recorded increased collaboration after organised events.

However, he pointed out the challenge of limited interest from people willing to pay to listen to the ideas of young entrepreneurs, unlike in South Africa and the United States, where such events are more common.

Smart Group investor, Mr Edwin Bruno, emphasised the need for Tanzanians to support young innovators to foster job creation and economic growth.

"An African child’s growth is a collective effort from the entire village. Similarly, to grow these youth-led businesses, everyone must lend a hand to help them become large companies," stated Mr Bruno.

NBS Africa manager Julie Grillaert, praised participants for their promising ideas, noting that they could address significant community challenges with the right support.

Other participants in the competition included Ms Ruth Maro from Gawapay and Richard Lema from ClickPesa, a loan company.

Despite not winning, all participants expressed gratitude for the opportunity to share their ideas and connect with stakeholders, hoping for the best in future collaborations.