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MTN SA has entered into a $2-million partnership with the International Finance Corporation (IFC) to expand the company’s Mobile Money (MoMo) business.
The company announced the partnership on 19 May.
The partnership aims to target unbanked and underbanked populations across the country
“IFC has assisted with funding and advisory services in several other Fintech operations in Africa and this partnership provides the opportunity to bridge the digital divide and broaden financial inclusion in South Africa,” MTN SA’s Chief Officer for Mobile Financial Servces, Felix Kamenga said in a statement.
What does the MTN/IFC partnership mean for MoMo?
As part of the partnership, IFC and MTN will recruit 10 000 MoMo agents in 2021. This will increase access to the financial service in underrepresented communities.
As part of the recruitment, MTN will train and supervise new agents while also providing support if needed.
In addition, MTN and IFC will create and train a team of Trade Development Representatives. The representatives will manage the MoMo agents and manage compliance regulations.
MTN MoMo customers do not need a bank account to sign up for the services. They only need a phone number and the service does not charge monthly fees for accounts or transfers.
“The growth and development of 10 000 MoMo agent businesses across the country not only benefits local communities and economies, but has the ripple effect of many more unbanked and underbanked South Africans having an opportunity to manage their money digitally, wherever they are,” Kamenga said.
Adamou Labara, IFC’s Country Manager for South Africa, said MoMo is an example of an essential service for small businesses.
“Digital technologies are helping connect businesses with customers and suppliers and increasing access to lending and payment systems for individuals and small businesses,” Labara said.
Featured image: warrenski via Flickr (CC 2.0 BY-SA, resized)