Please describe your proposed solution

Fairway will conduct a comprehensive study in collaboration with local financial institutions such as banks and microfinance companies to explore how the Ethiopian National ID (Fayda) system can be integrated with Cardano's decentralized identity solutions (SSI). The study will assess the technical feasibility, scalability, and potential benefits of such an integration, and will include small-scale pilot programs to generate learning outcomes for the future.

We aim to understand the key challenges, opportunities, and strategies required for using decentralized identity in microfinance, with a focus on improving access to credit for the unbanked population through Cardano's blockchain technology.

1. Conceptual Study:Objective: Study how Fayda (Ethiopia's National ID system) could be leveraged in microfinance using Cardano’s identity solutions (DIDs & VCs).
2. Methodology: Collaborate with local financial institutions, conduct interviews, technical assessments, and market research to explore the practicalities and challenges of integrating decentralized identity solutions in the microfinance sector.
3. Output: Produce a comprehensive report detailing findings on feasibility, benefits, potential partnerships, and scalability.
4. Pilot Learning Program (Limited Scope):
5. Objective: Conduct small-scale pilots with local microfinance institutions (MFIs) to test the concept on a limited basis. These pilots would involve issuing identity credentials to a small cohort of microfinance borrowers and studying the impact on loan access and verification processes.
6. Output: Report on the pilot outcomes, including lessons learned, technical issues, and potential for scaling.
7. Partnership Exploration:Objective: Engage key local financial players (such as commercial banks and microfinance institutions) to discuss potential collaboration and integration of Cardano’s SSI-based identity solutions for the microfinance sector.
8. Output: MoU or agreements for future potential partnerships with key institutions for further phases.

Please define the positive impact your project will have on the wider Cardano community

1. Financial Inclusion for Millions of Ethiopians

This project addresses a significant problem: the exclusion of millions of Ethiopians from formal financial services. By providing verifiable digital identities that enable access to microfinance and banking, we will significantly improve financial inclusion.

2. Strengthening Cardano Adoption

By building the identity solution on Cardano’s blockchain (Identus platform), this project demonstrates a real-world use case of Cardano for decentralized identity management in a high-impact sector. This will drive greater adoption of Cardano in Africa and set a precedent for similar projects in other regions.

3. Regulatory Compliance and Scalability

Our SSI-based KYC system ensures compliance with Ethiopian financial regulations while offering a scalable solution that can be expanded beyond microfinance into other sectors such as healthcare, insurance, and education.

4. Social Impact and Economic Empowerment

Providing access to microfinance will help small businesses grow, reduce poverty, and improve livelihoods across Ethiopia. This aligns with global Sustainable Development Goals (SDGs) and has the potential to create long-lasting economic impact.

What is your capability to deliver your project with high levels of trust and accountability? How do you intend to validate if your approach is feasible?

Fairway has already demonstrated the ability to form key partnerships in Ethiopia, evidenced by past collaborations with local educational institutions. Our team, with experience in both blockchain technology and local business culture, is well-positioned to deliver this study and pilot program. We have access to on-the-ground resources, an operational branch, and expertise in decentralized identity implementation, supported by relationships with Proofspace for technical integration.

What are the key milestones you need to achieve in order to complete your project successfully?

Milestone 1: Milestone 1: Integration of Fayda National ID with Fairway’s Professional ID Wallet

• Objective: To integrate the Fayda National ID into the Fairway Professional ID wallet, enabling Ethiopians to manage their professional and financial identities in one secure digital space.

• Activities:

• Work closely with Ethiopia’s National ID program (Fayda) to ensure seamless integration of the Fayda credentials into the blockchain wallet.

• Issue verifiable credentials that represent a user’s professional qualifications and personal ID, allowing financial institutions to verify identity securely.

Milestone 2: Milestone 2: Development of KYC Verification for Microfinance Institutions

• Objective: Develop a blockchain-based identity verification solution tailored to the needs of microfinance institutions, enabling compliant KYC processes.

• Activities:

• Customize Fairway’s SSI wallet to enable remote KYC verification.

• Partner with microfinance institutions to onboard users and demonstrate the technology's impact on scaling financial access.

Milestone 3: Phase 3: Pilot Program for Microfinance and Financial Services

• Objective: Launch a pilot program in partnership with Ethiopian microfinance institutions to provide loans and other services using SSI-based KYC.

• Activities:

• Partner with 3-5 microfinance institutions to implement the solution in target regions.

• Issue microloans to participants through the decentralized identity system and assess the effectiveness of the solution in real-world conditions.

Final Milestone: Final Milestone: Scale-up and Adoption Campaign

• Objective: Expand the solution nationwide to millions of unbanked Ethiopians, scaling Cardano adoption and providing verifiable digital identities for financial services.

• Activities:

• Launch public awareness campaigns to educate the population on how to use digital wallets and verifiable credentials to access financial services.

• Expand partnerships with financial institutions and government agencies to ensure the solution’s sustainability.

Who is in the project team and what are their roles?

Gemechis Marema (Chief Commercial Officer, Fairway)

• Oversees partnership development and stakeholder management in Ethiopia.

Henrik Metsämäki (CEO, Fairway)

• Leads overall project management and strategy, ensuring milestones are met.

Heikki Ruhanen (COO, Fairway)

• Coordinates integration efforts with Fayda and manages local financial partnerships.

Kidus Mammo (CTO, Fairway)

• Provides technical leadership in blockchain integration and KYC development.

Please provide a cost breakdown of the proposed work and resources

1. Stakeholder Engagement - 3 Months - 25k ADA
2. Partnership establishment and exploration discussions: 15k ADA
3. Travel, workshops, and stakeholder meetings: 10k ADA
4. Conceptual Study & Feasibility Analysis - 3 Months - 40k ADAResearch and analysis: 25k ADA
5. Report preparation and documentation: 10k ADA
6. Miscellaneous expenses: 5k ADA
7. Pilot Learning Program (Small-Scale) - 1 Month - 30k ADA
8. Identity issuance process for 20 microfinance clients: 15k ADA
9. Pilot program coordination and implementation: 10k ADAMiscellaneous costs: 5k ADA
10. Evaluation and Documentation - 1 Month - 15k ADAFeedback collection and evaluation: 8k ADA
11. Documentation and strategy formation: 5k ADA
12. Miscellaneous costs: 2k ADA

No dependencies.

How does the cost of the project represent value for money for the Cardano ecosystem?

This project provides value for money by focusing on feasibility, exploration, and learning rather than large-scale implementation. By delivering a detailed conceptual study and a small-scale pilot, we can generate key insights and forge relationships without overextending resources. This approach positions the project to make impactful contributions to both Cardano's decentralized identity ecosystem and the financial inclusion efforts in Ethiopia.