This is a huge chance for agritech startups across Nigeria. The FCMB-Wennovation Agritech Incubation Programme, in conjunction with Wennovation Hub, has launched a bid to guide early-stage AgriTech Start-ups across Nigeria so that they can test and validate their ideas as well as gather their first set of customers or pivot if need be.
This will be done through a combination of financial support, guidance, and training. The secondary objective is to prepare these start-ups for acceleration.
Here Is All You Need To Know
The goal of the 2019 incubation is to:
Expose 10 teams across Nigeria to the root of the pre-defined problem statement by merging an in-depth problem definition strategy with an immersion process.
Support at least top 10 teams with a demonstrable Minimum Viable Product to build a sustainable business model by taking them through a design thinking workshop and subsequently a 3 weeks incubation program.
Support at least tops 2 Agritech startups in Nigeria with seed investments and grants.
Offer access to experienced mentors and a cohort structure that encourages peer learning and support.
Provide opportunities to connect with potential customers and investors.
What Are Expected of Prospective Applicants
Applications should focus on four problem statements, namely Input, Production, Processing and Storage, and Marketing and Sales, with Wennovation Hub looking for MVP-stage startups with some form of market validation.
The programme commences with a one-week immersion component where selected startups get to interact with community members through Wennovation Hub immersion partners. Startups who successfully complete the immersion programme and the required reporting commitments will be invited to a two-week Bootcamp in Lagos.
It all concludes with a demo day in September, with all successful startups to be taken into a six-month post-Bootcamp aftercare programme
At the end of calls for application, 10 Agritech start-ups will be selected for the incubation program.
The program will be concluded with a pitching competition at the demo day where 2 Agritech startups will win a total of N3million in Grants.
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.
Ecobank Transnational Incorporated, ETI, the Lomé-based parent company of the Ecobank Group, announce the appointment of Nana Araba Abban as Group Consumer Banking Head with immediate effect. Nana will be a member of the Group Executive Committee and report directly to the Group Chief Executive Officer.
Nana Araba Abban is a Chartered Accountant (FCCA) with over 25 years’ experience in the Financial Services industry. During her career at Ecobank, Nana Araba Abban has held several senior positions including Group Head of Direct Banking, Head of Client Engagement and Senior Group Manager for Personal Banking.
Commenting on Nana’s appointment, Ade Ayeyemi said- “We are happy to confirm Nana as Group Head, Consumer Banking. She has extensive experience in the consumer banking space in various areas.
Nana, who has been a senior member of the Consumer Banking team in the Group for some time will further grow our consumer business in line with our digital transformation agenda building on the successes we have had in the past. I convey hearty congratulations to Nana on this appointment.’
Mr. Ayeyemi continued: “We are particularly pleased with the effectiveness of our succession planning as we have been able to fill vacancies from within the Bank. We will continue to grow our talent pool.”
Before joining Ecobank, Nana Araba Abban held several senior positions with Standard Chartered Bank, Royal Bank of Scotland and other institutions in Product Portfolio Management, Product Accounting and Banking Operations.
Nana Araba Abban holds an MBA, in Business in Emerging Markets from the University of Liverpool and Bachelor of Science in Mathematics & Statistics from Queen Mary & Westfield College, University of London, UK.
She is also a Fellow of the Association of Chartered Certified Accountants Nana Araba Abban, the new Group Consumer Banking Head had been acting in that capacity prior to now, alongside her previous role of Group Head, Direct Banking.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.
The Black Stallions of Nigeria edged the Eagles of Ghana 14-12 to clinch the inaugural President’s Cup at the Nduom Sports Stadium in Elmina, Cape Coast Ghana on Saturday. The first half ended without points from both teams as the Black Stallions dominated and pinned the Eagles in their half for the most part of the half. Captain Onoru Jatto opened the scoring through a superb move from a quick line out in the 50th minute converted by Joshua Etim for 7 points.
The Eagles responded within 5 minutes with a power-play try but the conversion was missed. Black Stallions center; Joshua Etim crossed over the whitewash from another set play in the 60th minute and converted to put the Stallions 12-5 up. The Ghanaians crossed over for a try which was converted in the 75th minute but the Stallions held on for their win in Elmina, Cape Coast as the match ended 14-12.
The Ghana-Nigeria President’s Cup was announced earlier this year in March by the Presidents of Ghana Rugby, Mr. Herbert Mensah, and the President of the Nigeria Rugby Football Federation, Mr. Kelechukwu Mbagwu.
Speaking from Lagos, Mbagwu said, “My brother Herbert, President of the Ghanaian Rugby Union. I thank you for the touching and heartwarming message. It is indeed an encounter between two brothers who love and respect each other. Nevertheless, the match was just as keen for that very reason. The President’s Cup is a symbol of our progress in the great game and our brotherhood. We look forward to hosting Ghana in Nigeria soon.”
This match marked the end of the 2019 WARS (West African Rugby Series) Men’s XVs Ghana Invitational Tournament as Nigeria finished runners up of the tournament behind Ivory Coast.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.
With the rumors that the federal government may spike on the fuel subsidy as new refineries come on stream early next year, UR Fuels, an on-demand app-based fuel delivery startup for both business and individual customers has launched in Nigeria, aiming to streamline the process of purchasing and obtaining fuel.
Incorporated in early this year, the Lagos-based UR Fuels allows B2B and B2C customers to order and pay for petrol, and get it delivered to their office or work. The goal is to help solve Nigeria’s downstream petrol supply challenges.
According to the founder and CEO of UR Fuels, Mr. Ugo Nwobodo, every home in Nigeria has a generator as a backup for the inefficient supply of electricity the country is known for. These generators are mostly powered by diesel or gasoline. People have to go to petrol stations every day to buy diesel in jerry cans, which could be a very inconvenient and daunting task.
To bridge this gap and help solve the problem, UR Fuels brings the diesel directly to customers’ homes and offices in its customized delivery trucks. The startup sells a minimum of 15 liters at a time, with the self-funded startup claiming to be the first of its kind in Nigeria.
“We are currently operating in the Lagos metropolis area. We plan to expand our operations to other major cities across Nigeria in upcoming months,” said Nwobodo.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.
More Africa-focused startups are raising funds to either expand or grow their businesses this year. Apart from Opay’s recent funding round, GONA, the Chinese startup that offers cashless bus services and payment solutions with a focus on the Nigerian market is the latest to join the bandwagon.
This is remarkable because it shows that the African startup ecosystem is gradually fusing into the global startup ecosystem.
Here Is The Deal
News website, c.m.163.com says the Chinese-led investment came from Crystal Stream Capital, UnityVC and Shaka VC.
According to Liu Xiaojun, the founder and CEO of GONA the round of financing will be used for team building and product technology upgrades.
This new investment will further allow GONA to employ more locals to help develop the product and expand its popularity.
“We will try to employ the best people to help the most Lagosians have a better daily commuting experience,” says co-founder, Noah Gu.
Larry, a partner at ShakaVC, notes that the minibus scene provides more efficient and convenient travel services for hundreds of millions of Africans, and the market potential is huge.
As the first Chinese fund to focus on early African investment in Africa, ShakaVC will support the development of GONA in local resources, experience, and capital.
GONA boasts of thousands of active users and nearly 10,000 transactions every day.
GDP From Transport in Nigeria increased to 288637 NGN Millions in the first quarter of 2019 from 277338.67 NGN Millions in the fourth quarter of 2018. GDP From Transport in Nigeria averaged 198649.70 NGN Millions from 2010 until 2019, reaching an all-time high of 288637 NGN Millions in the first quarter of 2019 and a record low of 144848.60 NGN Millions in the first quarter of 2010.
What GONA Does
GONA is a mobile payments platform with primary operations in Lagos.
GONA is enabling cashless payments on ‘informal transit’ public buses in Lagos and is also working to solve the pains of inconvenience in the local travel market. This it is doing by using technical means to improve operational efficiency.
‘‘The Rains Are Here, You deserve a less stressful bus ride to work. Pick up your smartphone and purchase a ticket on GONA, monitor the closest buses to you and hop onto one. Pay for your ride in style, avoid the chaos of “No Change”, Gona tweeted.
The startup recently announced the completion of a multi-million dollar Pre-A round of financing.
Even though GONA is headquartered in China, Lagos remains its primary focus. In Lagos, GONA has fully completed localization, with roll-out in certain routes within Lagos, one of which is Yaba to the University of Lagos (UNILAG) campus.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.
PRESIDENT BUHARI RECEIVES ILO TEAM 0A&B; President Muhammadu Buhari addresses the Director-General of International Labour Organisation, (ILO), Mr. Guy Ryder and his team during an audience with the President at the State House Abuja. PHOTO; SUNDAY AGHAEZE. AUGUST 1 2019.
PRESIDENT BUHARI RECEIVES ILO TEAM 0A&B; President Muhammadu Buhari addresses the Director-General of International Labour Organisation, (ILO), Mr. Guy Ryder and his team during an audience with the President at the State House Abuja. PHOTO; SUNDAY AGHAEZE. AUGUST 1 2019.
PRESIDENT BUHARI RECEIVES ILO TEAM 4; R-L; Chief of Staff, Mallam Abba Kyari, President Muhammadu Buhari in a handshake with the Director-General of International Labour Organisation, (ILO), Mr Guy Ryder, Director ILO Country office of Nigeria, Mr Dennis Zulu, Ms Cynthia Samuel-Olonjuwon during an audience with the President at the State House Abuja. PHOTO; SUNDAY AGHAEZE. AUGUST 1 2019.
PRESIDENT BUHARI RECEIVES ILO TEAM 6; President Muhammadu Buhari in a handshake with Mr. Yasser Hassan. Others are Director ILO Country office of Nigeria, Mr. Dennis Zulu, Ms. Cynthia Samuel-Olonjuwon, UN Resident Coordinator, Edward Kallon and Director-General of International Labour Organisation, (ILO), Mr. Guy Ryder (R) during an audience with the President at the State House Abuja. PHOTO; SUNDAY AGHAEZE. AUGUST 1 2019.
PRESIDENT BUHARI RECEIVES ILO TEAM ; R-L; Permanent Secretaries, SGF Mr. Boss Mustapha, Chief of Staff, Mallam Abba Kyari, President Muhammadu Buhari in a handshake with the Director-General of International Labour Organisation, (ILO), Mr Guy Ryder, Director ILO Country office of Nigeria, Mr Dennis Zulu, Ms Cynthia Samuel-Olonjuwon Mr Yasser Hassan. UN Resident Coordinator, Edward Kallon during an audience with the President at the State House Abuja. PHOTO; SUNDAY AGHAEZE. AUGUST 1 2019.
PRESIDENT BUHARI RECEIVES ILO TEAM 7; President Muhammadu Buhari in a handshake with NLC President Comrade Ayuba Wabba. Others are Director ILO Country office of Nigeria, Mr. Dennis Zulu, Ms. Cynthia Samuel-Olonjuwon and Mr. Yasser Hassan during an audience with the President at the State House Abuja. PHOTO; SUNDAY AGHAEZE. AUGUST 1 2019.
SUNDAY AGHAEZE( HND Mass Comm, PGDBA) PERSONAL ASSISTANT TO THE PRESIDENT International Photojournalist +234-803-3031520, 0805-2039160 email; suaghaeze@gmail.com aghaezesun@gmail.com
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.
PRESIDENT BUHARI RECEIVES THE OUTGOING ZIMBABWE AMB MAZEMO 0A. President Muhammadu Buhari usher in the outgoing Zimbabwe Ambassador to Nigeria, Mr. Lovemore Mazemo during a farewell at the State House Abuja. PHOTO; SUNDAY AGHAEZE. AUGUST 1 2019
PRESIDENT BUHARI RECEIVES THE OUTGOING ZIMBABWE AMB MAZEMO 1. President Muhammadu Buhari Received the outgoing Zimbabwe Ambassador to Nigeria, Mr. Lovemore Mazemo during a farewell at the State House Abuja. PHOTO; SUNDAY AGHAEZE. AUGUST 1 2019
PRESIDENT BUHARI RECEIVES THE OUTGOING ZIMBABWE AMB MAZEMO 3. President Muhammadu Buhari presents a gift to the outgoing Zimbabwe Ambassador to Nigeria, Mr. Lovemore Mazemo during a farewell at the State House Abuja. PHOTO; SUNDAY AGHAEZE. AUGUST 1 2019
PRESIDENT BUHARI RECEIVES THE OUTGOING ZIMBABWE AMB MAZEMO 1. President Muhammadu Buhari Received the outgoing Zimbabwe Ambassador to Nigeria, Mr. Lovemore Mazemo during a farewell at the State House Abuja. PHOTO; SUNDAY AGHAEZE. AUGUST 1 2019
PRESIDENT BUHARI RECEIVES THE OUTGOING ZIMBABWE AMB MAZEMO 3. President Muhammadu Buhari presents a gift to the outgoing Zimbabwe Ambassador to Nigeria, Mr. Lovemore Mazemo during a farewell at the State House Abuja. PHOTO; SUNDAY AGHAEZE. AUGUST 1 2019
SUNDAY AGHAEZE( HND Mass Comm, PGDBA) PERSONAL ASSISTANT TO THE PRESIDENT International Photojournalist +234-803-3031520, 0805-2039160 email; suaghaeze@gmail.com aghaezesun@gmail.com
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.
Nigeria’s Access Bank, which has recently gone into a merger with Diamond Bank has recently announced plans to launch an innovative portal that will allow customers to process their loan application online. The bank granted up to N37 billion loans to its SMEs customers in 2018 alone.
The Bank has also organized a sensitization programme for players in the creative industry with a view to making access to the CBN Creative Sector Intervention Fund, CIFI, more seamless.
The Central Bank of Nigeria, CBN, recently rolled out the CIFI as part of its efforts to open up the creative sector and improve its contribution to the economy.
The CBN has already earmarked N20 billion for disbursement in the first phase of the exercise with three to 10 years payback plan and a maximum of nine percent interest rate per annum.
Fidelity Bank
Fidelity Bank has recently announced a partnership with PwC Nigeria, a tax and advisory services company, to fund SMEs with N12 million grant in its Fidelity Small and Medium Enterprises (SMEs) Funding Connect Series.
The bank also said that, at the final series of the event, three finalists will be rewarded a grand sum of N2 million (1st position) and N1 million each for the 2nd and 3rd positions respectively. The Executive Director Shared Services and Products, Mrs. Chijioke Ugochukwu, disclosed this at the Fidelity SME Forum on Inspiration FM, Lagos.
The event which will kick off in Lagos on August 7, 2019, is focused on funding.
“The event is focused on funding because in the course of our work, we have realised that aside capacity issues, funding is a major issue. So we try to create a platform where the supply and demand sides of the equation would meet. Supply meaning the fund providers while the demand side means the founders/entrepreneurs,’’ she said.
The entire series will be in Lagos, Port-Harcourt, later this year and in Kano early next year and we anticipate that across the three series we will have at least 3,000 participants, 10,000 SMEs, that will come in contact with 60 founders, 60 entrepreneurs and in total we are looking at N12 million in grants and across the entire series of the six breakout session in networking cocktails.
The three capacity building sessions will be with fund providers, founders, on one hand, model entrepreneurs, founders and subject matter experts.
“The five finalists get a chance to pitch the entire forum on August 7. So the five finalists will be live at the event and they will speak to the house about their ideas and three winners will emerge. The first prize will be N2 million and two consolation prizes of N1 million each.”
“To attend the event, you are to register by visiting the dedicated website for the bank which is smeconnect.fidelitybank.ng and of course also via the event app which you can download from Google Play stores for android phone users and the RS app store for Apple users.”
Nigerian banks’ lending pattern pointing to financial exclusion of SMEs
First Bank Of Nigeria
If you own micro, small or medium agricultural enterprise, this loan facility is a special intervention fund provided by the CBN to support your business. You get this loan at a low-interest cost and enjoy long-tenured repayment structure; to assist your business in enhancing capacity for employment generation, growth, and economic development.
Trusted customers of FirstBank seeking to expand their agri-businesses using low priced credit facilities as made possible under the scheme can benefit from this loan.
Management experience of at least 3 years in the enterprise to be funded is required.
Benefits
Interest rate: 9% (all-in), no other fee can be charged.
The credit facility is available either as term loan or overdraft.
Required Documents
Formal application for a Credit Facility.
Certificate of Incorporation.
Memorandum and Article of Association (MEMART).
Board Resolution to Borrow.
Feasibility Study/Business Plan.
Who Can Apply
SMEs with at least 3yrs Mgt Experience (Max obligor limit of N50m).
GTB
Fashion Industry Credit
Tailored to your Fashion business, designed for growth. In line with the CBN creative industry loan, the bank has created a single-digit interest rate loan at 9% to provide entrepreneurs in the fashion industry with all the financing they need to grow their business.
The loan can be:
Up to N5 Million for your fashion business.
Single-digit (9% per annum) interest rate at 0.75% per month
No fees
Flexible repayment plan spread over 360 days
Customers can access up to 50% of the average annual turnover
Food Industry
The bank also grants loan to the food industry. Now you can get all the financing you need with the GTBank Food Industry Credit, which offers you a single-digit interest rate loan of just 9% per annum.
The loan can be:
Up to N2 Million
9% per annum interest rate (0.75% monthly)
Flexible repayment plan spread over 180 days
Zero Fees
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.
This is an opportunity to invade Nigeria’s retail sector. Mr. Uzoma Dozie, former Group Managing Director of Nigeria’s Diamond Bank, which was recently acquired by Access Bank sees a big gap here. He is sure that launching Sparkle, a startup that hopes to reduce operational risks of small businesses in Nigeria, is the most timely thing around the corner. Whether it is registering your new company or registering for tax or getting forex or domain names for your businesses, you can do all that on Sparkle.
Here Is Why
After seeing off Diamond Bank’s acquisition, Uzoma Dozie floats a new firm, Sparkle, to help reduce operational risks of small businesses in Nigeria.
Sparkle’s target is to tackle how retailers achieve their daily objectives and scale their businesses.
The startup will provide a range of innovative lifestyle services, in addition to typical current and savings accounts that exist in the market.
In particular, Sparkle will deliver customer experience-led support services, ranging from inventory management and invoicing statements to foreign exchange services and a POS-via-mobile function.
Set to launch in 2019, Sparkle will release plug-in APIs for the platform, to enhance convenience & service, whereby outside developers can contribute & build solutions.
Powered by AI and Machine Learning, Sparkle is building a dynamic community around Nigeria’s retailers and consumers, influencing purchasing decisions based on user-generated behavioural purchase data.
This will actively support retailers in navigating a better route to market by directing the right consumers their way.
This Will Be A Game Changer, A Major Disruptor For Many Leeching Onto The Retail Value Chain
Expect jobs to be taken away from Nigeria’s company registration agents, among many others currently reaping from Nigeria’s heavily dispersed retail ecosystem.
Performance of Payment Channels by Value of Transaction in Q3 2016. Source: NBS
Sparkle team is also building a digital framework for retailers to register their companies, register for tax and register domains, as it looks to plug the gap in terms of business advisory and regulatory services for retail SMEs in the country.
“Retailers and consumers in Nigeria are currently disconnected; Sparkle is building the solution around its understanding of the challenges of small businesses, which will help reduce the operational risks small businesses are exposed to in their infancy. Sparkle is a product, a community, born out of necessity for Nigeria’s retail landscape. We will connect millions of retailers on a digital platform, providing a service they can trust, that is seamless, and that allows for frictionless transactions across all activities and business services”.
“Having spent more than 20 years building out the retail arm of Diamond Bank, it is clear that there is a significant gap in the market to incubate and roll out a new approach to services for retailers, and at scale; they need a financial & business services partner, not another finance platform.
This is where we stand out from all others. Sparkle is a collaboration between retailer and customer — a support system that will ensure far greater financial inclusion and much-improved access to market, built for many, built to scale,” says Uzoma Dozie, Founder and CEO, Sparkle.
Succeed? Support Is Already Guaranteed By Major Financial Players
For a man who was until recently Diamond Bank’s MD, the clout is still very much heavy.
The startup has already entered into partnerships with Visa, Network International, as well as PricewaterhouseCoopers. They will also be working with Microsoft.
Retailers contribute 33% to total GDP and 45% of total employment in Nigeria and are a critical part of powering the Nigerian economy, however services available to small businesses have not been best suited.
Sparkle has identified lack of funding, poor access to market/network and lack of business training as the primary challenges for the sector, which is why the new platform will also provide access to mentorship and development.
“Technology adoption is the only way retail can scale in Nigeria.’’
“Technology adoption is the only way retail can scale in Nigeria. We are in a new, digital economy. Retailers, individuals, and businesses need the space and bandwidth to be creative and to build their business; we are building Sparkle as a wrap around for what they are already doing and we are leveling the playing field for all Nigerians, democratizing access and helping SMEs create their own luck. Sparkle is for the many, not for the few and as we continue to build out the platform,’’ Mr Dozie said.
During his tenure at Diamond Bank, Uzoma was responsible for ensuring technological innovation was central to the institution’s growth strategy. From 2014–2018, Diamond Bank’s mobile app adoption rates grew from 206,000 to 3.3 million, and he simultaneously focused on aggressively growing the bank’s retail arm to include 18 million MSME customers.
Keen to pioneer diversity and financial inclusion, the Sparkle team has also identified women as a key demographic to collaborate with, as they play a key role in the new economy, with high adoption of tech to leverage on the flexibility of driving new businesses. Women are also essential in staying in touch and connecting with their millennial families.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.
Expect investors who invest in Africa’s fintech sector to cash out big. Investment deals in Africa’s fintech sector shot to a record $357 million in 2018. This is partly because more people are using mobile money services in Sub-Saharan Africa (SSA) than in any other sub-regions in the world. In fact, over the last 12 to 18 months, Sub-Saharan Africa (SSA) has now emerged as one of the fastest-growing financial technology (Fintech) hubs in the world in terms of investments, albeit from a low base.
Here Is All You Need To Know
In 2018 alone, investment in African fintechs nearly quadrupled to $357 million, with startups in Kenya, Nigeria, and South Africa accounting for the largest share. This trend continued into 2019, with a number of high-profile deals.
For example, three Nigerian fintech start-ups — Kudi, OneFi and TeamApt, each raised around $5 million in funding during the first half of the year.
GSMA said huge opportunities await Fintech’s investors, with emerging markets including Nigeria, Kenya, and South Africa holding huge potential for fintech innovations.
The Numbers
GSMA further added that 395.7 million registered mobile money accounts now exist in the region and that nearly nine in 10 registered mobile money accounts are in East and West Africa.
According to the body, which is in charge of over 800 telecoms companies globally, over the past year, several underserved markets in the region have taken steps to accelerate mobile money adoption and, by extension, financial inclusion among citizens.
The body noted that in Nigeria, regulatory reforms introduced in October 2018 allow mobile operators to obtain licenses to operate payment service banks (PSBs), while in Ethiopia, an ambitious financial inclusion strategy has been attracting investment into mobile money services.
Indeed, reforms in Nigeria have seen MTN getting Super Agent license on Tuesday from the Central Bank of Nigeria, with other telecoms to follow suit.
Integration of Mobile Money Platforms With Broader Financial Ecosystem Will Change The Game
GSMA noted that Angola’s national bank plans to submit new laws governing payment systems, including mobile payments, to parliament for approval in 2019.
The telecoms body said these developments notwithstanding, future growth of mobile money services in the region will be largely driven by the interoperability of mobile money services.
Account-to-account (A2A) interoperability gives users the ability to transfer between customer accounts held with different mobile money providers and other financial system players.
It also disclosed that Tanzania led the way in 2014, but several countries across the region, including Kenya, Rwanda, Nigeria, and Ghana, have now launched interoperability projects and use cases.
According to GSMA, mobile money providers’ integration with banks is one particular use case that has significantly increased volumes moving between mobile money and banking systems.
The body, while charging Nigeria and other countries, informed that a next step in the interoperability journey will be the implementation of innovative solutions to integrate mobile money platforms with the broader financial ecosystem.
“A number of options exist around central switching infrastructure for the industry to enable nascent use cases to scale, including merchant payments and efficient connections to domestic and international financial system players. This is already happening at sub-regional levels.
“For example, the eight countries 11 of the West African Economic Monetary Union (WAEMU) are building an interoperable system that will connect 110 million people to more than 125 banks, dozens of e-money issuers, and more than 600 microfinance institutions.
“However, much of the existing bank-focused infrastructure is not optimal for mobile money. In an effort to solve this, MTN and Orange, with the support of the GSMA, launched a joint venture to enable interoperable payments across Africa.
“Known as Mowali (‘mobile wallet interoperability’), the service is open to any mobile money provider in Africa, as well as banks, money transfer operators and other financial services providers.
“With its pan- African footprint allowing for economies of scale and a cost-recovery commercial model, Mowali has the potential to drive down the price of services offered to lower-income customers.
“Additionally, Mowali could shape the future of the mobile money ecosystem in the region by creating a common mobile money acceptance brand with the potential to connect fintechs, banks, merchants and other ecosystem players to nearly 400 million mobile money accounts across Africa,” GSMA stated.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.
