Zeituna Mustafa. MSc’s Post

Driving SME Growth: Mobile Money’s Impact in Africa! The latest GSMA report on Mobile Money illuminates a surge in adoption across Sub-Saharan Africa, signalling a profound shift towards economic empowerment. From 2013 to 2022, mobile money injected $150 billion into the region’s GDP, representing 3.7%—underscoring its transformative influence. What’s in it for SMEs? 🌍 - Integration into the Formal Economy: Mobile money seamlessly integrates SMEs, especially in remote and underserved areas, into the formal economy. This accessibility fosters inclusive participation, unlocking previously untapped opportunities. - Cost Savings: By slashing traditional banking transaction fees, mobile money empowers SMEs to conduct business more affordably. These savings translate into capital freed up for reinvestment in growth and expansion endeavours. - Broader Market Access: Beyond cost efficiency, mobile money adoption offers SMEs access to a broader customer base. In a landscape where consumers prioritise convenience and accessibility, SMEs can cater to tech-savvy demographics, nurturing growth and fostering customer loyalty. As Africa’s economic backbone, SMEs play a pivotal role, making initiatives that empower them indispensable. Dive deeper into the report to uncover insights driving SMEs towards prosperity. #MobileMoney #SMEEmpowerment #GSMAInsights 📊✨ https://lnkd.in/dHnSVBMA

NeGSt and Visa Forge Groundbreaking Collaboration to Transform Nigeria’s Digital Economy Abuja 13th September, 2023 – In a bold move to reshape digital payments and spur economic growth, NeGSt, a leading digital payment provider, has entered a strategic partnership with Visa Inc., a global payment technology leader. This collaboration aims to revolutionize Nigeria’s eGovernment sector by streamlining tax payments, social services, and public transactions. Dr. Felix Babatunde Obada, Executive Vice Chairman of NeGSt-TAS, highlighted the impact of this partnership: “Our customized eGovernment solutions aim to benefit citizens, governments, and businesses alike. Partnering with Visa reinforces our commitment to sustainable economic growth and financial inclusion, ensuring Nigeria’s digital transformation strengthens communities.” Aligned with Nigeria’s push to digitize its economy, the partnership enhances financial security and reliability in public services, streamlining tax collection and welfare distribution while reducing administrative delays. Beyond improving digital payments, Visa and NeGSt will drive community-focused financial solutions, including digital literacy programs to help Nigerians thrive in a digital economy. The strategic agreement emphasizes initiatives for economic resilience, focusing on financial literacy and access. "Through digital literacy and technology training, we aim to empower individuals and businesses, enabling growth in a digitized world," added Dr. Obada. Visa’s support underscores its commitment to financial inclusion and economic development in emerging markets, with goals to make digital payments more accessible and promote entrepreneurship. “Combining our local insights with Visa’s global expertise, we’re set to enhance public and private sector efficiency, accelerate digitization, and foster financial inclusion,” Dr. Obada continued. This landmark collaboration positions Nigeria as a regional leader in digital transformation, promising a more inclusive, efficient, and secure future for its citizens and businesses.

Gakenia Siika, an Associate in the Strategy & Operations Consulting Team at PwC Kenya, notes that Kenya’s National Payments Strategy recognizes the importance of digital payments in the nation, aiming to build upon the existing success of the country’s mobile money and digital payments landscape to further enhance financial inclusion. Leveraging digital payment platforms has expanded access to financial services, particularly among underserved groups, with approximately 84% of the population having access to formal financial services and products. Through increased participation in financial activities, Kenya is experiencing heightened economic empowerment, paving the way for sustainable development and prosperity. #PwCInsights #PwCAdvisory

Pesapal is having a huge impact in Kenya and beyond—they are solving persistent challenges with fresh, innovative solutions. Pesapal is a payment platform serving parts of Eastern and Southern Africa. They make it easy for businesses and individuals to send and receive payments whether online, in stores or through mobile devices. Here are the 3 main reasons behind Pesapal’s success: • Technology that meets real needs Pesapal did not just copy existing solutions. They developed tools to tackle specific problems that African businesses face daily. For example, their Reserveport system, built with Oracle Hospitality, supports hotels, restaurants and travel companies by combining booking and payment management in one place. This reduces errors and saves valuable time. • Smart partnerships that expand reach Pesapal understands the power of collaboration. They have partnered with major players like Visa, Mastercard and Airtel Money. This allows Pesapal to extend their services to more people and places across Africa. • Accessible payment options for everyone Recognizing that many Africans do not have bank accounts, Pesapal has made it easy to pay through mobile money or cards. This inclusion allows more people to participate in the digital economy, regardless of traditional banking access. Pesapal is leading the charge in transforming Africa’s digital payment landscape. They are the ones setting trends. They are not just following them. As they grow, we are likely to see them tackle even bigger challenges, like helping more small businesses join the digital economy. PS - Follow me Ben David for more finance industry insights

A major stride in connecting East Africa’s economies! Safaricom PLC expands M-PESA Global to Ethiopia, enabling seamless money transfers between Kenya and Ethiopia! 🌍💸 This move aims to boost financial inclusion, making it easier for individuals and businesses to send and receive money across borders. With Ethiopia's evolving digital payment landscape, M-PESA is bridging gaps and creating new opportunities for economic growth. Read more: https://zurl.co/qDFF #MPESA #DigitalFinance #EastAfrica

Statistics from the Kenya Bureau of Statistics indicate that over 83% of formal employment in Kenya comes from the Micro and Small Medium Enterprises (MSMEs). This actually drives my motivation of playing my part as a practitioner in this space to curate value propositions that ensure despite the numerous headwinds faced by these businesses, they receive the much needed support to thrive circumstances around notwithstanding. I recently attended a TV interview where we delved further on this. The greatest undoing in this segment is the informality that calls for structured policy interventions beginning with the government to ensure that there are adequate policies that support businesses to formalize including but not limited to seamless registration requirements and considerations for the use of single permits. This will ensure that these entrepreneurs are central in the country's industrialization and development agenda in general. It will be key that they be enticed to even expand the tax base. We definitely applauded the government based on the introduction of the Credit Guarantee Scheme that incentivised the Financial Institutions to allocate more capital to support MSME's. The program is in its 4th year and the impact has been commendable indeed considering the reeling effects COVID-19 had on this sector which almost ground the businesses to a halt. Even the stock of NPLs in the Banking industry today speaks to this. The importance of Private Public Partnerships (PPPs) in ensuring that the interventions are sustainable was profoundly acknowledged. Particularly considering the Banking industry umbrella Kenya Bankers Association MSME working group innovation dubbed Inuka Enterprise Program which brought together various industry players to ensure the customers are properly trained and equipped for various support programs by FIs. This also involves driving both the capital supply side where FIs receive financial incentives to increase their risk appetite through guarantees and the like, at the same time the capital demand side through technical assistance on the MSMEs part just to name but a few. This is where the Development Financial Institutions come in very handy. Encouraging and having the MSMEs, as part of various sector specific lobby groups and associations also goes a long way in increasing the customers market linkages and ability to compete favourably on pricing aspects. Lastly, we were emphatically in consensus that MSMEs have should leverage on technology in driving their marketing initiatives. At the same time to ensure that they are able to manage the operational costs relating to manpower requirements and the payment solutions at their disposal. #SMEBanking #SMESupport

#Agencybanking is transforming Africa's financial landscape, but successful #implementation requires careful planning and the right #technologypartner. It facilitates essential transactions such as #cashdeposits, withdrawals, and #fundtransfers, which are vital for individuals who lack access to formal banking channels. For instance, in Kenya, the number of transactions through agency banking surged from 29.9 𝙢𝙞𝙡𝙡𝙞𝙤𝙣 𝙞𝙣 2012 𝙩𝙤 158 𝙢𝙞𝙡𝙡𝙞𝙤𝙣 𝙗𝙮 2022, illustrating the significant impact of this system on expanding financial access. Countries like Tanzania and Uganda have also seen remarkable growth in their agency networks, with Tanzania boasting over 1.2 𝙢𝙞𝙡𝙡𝙞𝙤𝙣 𝙖𝙜𝙚𝙣𝙩𝙨 𝙗𝙮 2022, demonstrating the effectiveness of local partnerships in reaching unbanked communities. Integrating #agencybankingsystems with existing infrastructure can be complex and challenging. Redian Software helps #financialinstitutions in Africa navigate these challenges with tailored #agencybankingsolutions. Let's work together to expand financial access and empower communities. 𝙒𝙝𝙖𝙩 𝙦𝙪𝙚𝙨𝙩𝙞𝙤𝙣𝙨 𝙙𝙤 𝙮𝙤𝙪 𝙝𝙖𝙫𝙚 𝙖𝙗𝙤𝙪𝙩 𝙞𝙢𝙥𝙡𝙚𝙢𝙚𝙣𝙩𝙞𝙣𝙜 𝙤𝙧 𝙤𝙥𝙩𝙞𝙢𝙞𝙯𝙞𝙣𝙜 𝙮𝙤𝙪𝙧 𝙖𝙜𝙚𝙣𝙘𝙮 𝙗𝙖𝙣𝙠𝙞𝙣𝙜 𝙨𝙮𝙨𝙩𝙚𝙢? Contact: redian.africa@rediansoftware.com | +254784202649 What to learn more? Visit this link: https://lnkd.in/d-cEcTZs Pavan Verma | Arunesh Beri | Ketan N. | Kajal Vishal | Melody Njuguna | Levis Murunga | Joseph Mseli | Redian Fintech - Seamless Digital Banking | Redian Software USA | Redian Software Global | Redian Software UK | Redian Software Middle East & North Africa #agencybanking #financialinclusion #fintechafrica #agencybankingsolutions #digitalfinancialservices #africa #financialinclusionafrica #bankingtechnology #digitaltransformation

I clocked 1 year in Coronation, just a few weeks ago and there's so much we have got cooking. Today, I am excited to announce a transformative collaboration that will propel financial inclusion and economic prosperity for millions across Africa. Together with Access Holdings Plc, Safaricom Plc, and M-PESA Africa, we are forging a strategic partnership dedicated to broadening access to remittances across Africa, connecting some of the continent's largest economies. Coronation's partnership with M-PESA and Safaricom aims to boost financial inclusion. M-PESA connects over 60 million customers and 5 million businesses across 8 countries, processing $1 billion in transactions daily. Safaricom serves 32 million customers monthly, making it a key player in Kenya's digital economy. Together, they're revolutionizing finance across Africa. This truly signifies the fusion of collective expertise, resources, and an unwavering commitment to drive financial inclusion, empowering millions throughout Africa. https://lnkd.in/gnmpgkEE

Safaricom PLC’s M-Pesa Ratiba has taken Kenya’s financial convenience to new heights, attracting over a million users and facilitating Sh336 million in transactions within a single month. -Designed to automate recurring payments—like rent, bills, or school fees—Ratiba ensures that obligations are met on time, giving users peace of mind and saving valuable time. -This success highlights Safaricom’s role in driving financial inclusion and innovation. -With over 80 mini-apps now available, M-Pesa is expanding beyond mobile payments to become a comprehensive financial hub, offering services like international transfers, savings, credit, and more. Through continued user engagement and tailored offerings for individuals and businesses, M-Pesa remains at the forefront of digital finance in Kenya, empowering millions and transforming lives with secure, accessible solutions.  Here is more: https://lnkd.in/dYJ8nE_Y #FinancialInclusion #Innovation #MobileMoney #KenyaFinance #MPesa

I found this a very interesting read and food for thought by One Ephraim Njega Safaricom's financial future depends a lot on MPesa and the Ethiopian operations (a lot of uncertainties here). The local telecommunications market has reached maturity and they are likely to experience declining revenues in voice, SMS and even data (also partly due to unrelenting competition). Safaricom became the behemoth it is through innovation, ambition and endless imagination. However, in the last ten years, these traits have diminished. Apart from the Ethiopian entry, there is no game-changing thing they have done. Elsewhere in the world, telcos bundle their services with a TV streaming service to retain customers and stimulate data consumption. But Safaricom can't pursue even such a low-hanging fruit. I read in the Business Daily that Kenya is one of the few places where mobile money customers don't get interest for their ordinary deposits. This is due to provisions in the national payment system law. This needs to change. Failure to pay interest results in loss of value due to inflation. If Safaricom's management was imaginative enough they should have progressed MPesa into a digital bank. They would need to fully separate MPesa from Safaricom. But the benefits would be immense. Use of MPesa debit cards to shop would for example make more sense than the time-wasting process we see in supermarkets. MPesa would also become a network-agnostic payment gateway that can be deployed anywhere in the world. You wouldn't need a Safaricom line to operate an MPesa account. Safaricom needs to demonstrate a hunger for growth and constant renewal through innovation. The customers' preferences and options are changing all the time. The competition is not sleeping as demonstrated by declining voice market share. If the company is not careful, its revenues will plateau and then start declining. This is especially so given the difficulties in Ethiopia and the maturing home market.