Johannesburg, South Africa, August 18, 2014
—IFC, a member of the World Bank Group, today announced an advisory services agreement, valued at $1 million, with Airtel Zambia to increase access to mobile financial services in the Zambian market in order to strengthen financial inclusion.
In Zambia, two-thirds of the adult population is excluded from formal financial services. A majority of the population has no choice but to rely on cash and informal services for transactions, savings and credit, at high risk and cost.
The overall aim of the three-year project is to assist Airtel Money Zambia in building a sustainable mobile money operation. IFC will provide market research and advisory services on agent network management and business strategy development. The project is part of the Partnership for Financial Inclusion, a $37.4 million joint initiative of IFC and The MasterCard Foundation to expand microfinance and advance mobile financial services in Sub-Saharan Africa.
Brenda Thole, Airtel Money Director Zambia, said, “A key focus area for Airtel Money is to support the government’s mandate to enhance financial inclusion and to reach out to the unbanked population who may still have fears of mainstream banking or believe the services are too costly. This partnership with IFC and The MasterCard Foundation will boost our drive of customer education and help us build strong agent relationships, which are key to the success of this product.”
The implementation of mobile financial services has shown to be a successful way of increasing access to finance in several African markets. Kenya’s M-PESA is one of the most well-known mobile money operators in the world and is used by over 70 percent of Kenyan adults. In Tanzania, FinScope data show that the use of mobile money services has helped increase the rate of financial inclusion from 15.8 percent to 57.4 percent in just four years.
Greta Bull, IFC program manager for the Partnership for Financial inclusion, said, “Mobile phone usage is very high in Zambia, making it an ideal market in which to leverage technology to reach those who have previously been excluded from formal financial services. Financial inclusion is an important tool in promoting inclusive economic growth that can have significant impact on livelihoods.”
About Airtel Zambia
Airtel Networks Zambia Plc and Airtel Mobile Commerce Zambia LTD are subsidiaries of Bhakti Airtel. Airtel Network Zambia PLC has been operational in Zambia since 2010, after the buy-out of Zain. The company has the widest geographical footprint in Zambia with over 1,100 sites spread across Zambia. Airtel Networks Zambia Plc is 96.3 % owned by Bharti, with 3.7% listed on the Lusaka Stock Exchange. Bharti Airtel is the fourth largest telecommunications company in the world, with300 million customers across the globe.
About the Partnership for Financial Inclusion
The Partnership for Financial Inclusion is a $37.4 million joint initiative of IFC and The MasterCard Foundation to expand microfinance and advance mobile financial services in Sub-Saharan Africa. The Partnership is also supported by the Bill & Melinda Gates Foundation and the Development Bank of Austria (OeEB, Oesterreichische Entwicklungsbank AG), and collaborates with knowledge partners such as the World Bank and the Consultative Group to Assist the Poor, CGAP. For more information:
www.ifc.org/financialinclusionafrica
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
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