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  • Peter Ntumwa Airtel Uganda

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    Ralaivao
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    The document discusses the challenges and opportunities for mobile money in East and Southern African countries. It provides an overview of how mobile money works and the key players involved, including mobile network operators, financial institutions, merchants, and regulators. The main challenges include issues with licensing and regulation models, low agent distribution and capitalization especially in rural areas, low financial literacy in rural populations, security and lack of insurance for agents, reliance on mobile networks, political interference, IT security concerns, taxation, and balancing costs and profits. Opportunities lie in reaching the large informal sector through savings groups, expanding merchant payments, more collaboration across sectors, innovations through open APIs, facilitating cross-border remittances, and developing a

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    5.-Peter-Ntumwa-Airtel-Uganda

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    The document discusses the challenges and opportunities for mobile money in East and Southern African countries. It provides an overview of how mobile money works and the key players involved, including mobile network operators, financial institutions, merchants, and regulators. The main challenges include issues with licensing and regulation models, low agent distribution and capitalization especially in rural areas, low financial literacy in rural populations, security and lack of insurance for agents, reliance on mobile networks, political interference, IT security concerns, taxation, and balancing costs and profits. Opportunities lie in reaching the large informal sector through savings groups, expanding merchant payments, more collaboration across sectors, innovations through open APIs, facilitating cross-border remittances, and developing a

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    23 views9 pages

    Peter Ntumwa Airtel Uganda

    Uploaded by

    Ralaivao
    The document discusses the challenges and opportunities for mobile money in East and Southern African countries. It provides an overview of how mobile money works and the key players involved, including mobile network operators, financial institutions, merchants, and regulators. The main challenges include issues with licensing and regulation models, low agent distribution and capitalization especially in rural areas, low financial literacy in rural populations, security and lack of insurance for agents, reliance on mobile networks, political interference, IT security concerns, taxation, and balancing costs and profits. Opportunities lie in reaching the large informal sector through savings groups, expanding merchant payments, more collaboration across sectors, innovations through open APIs, facilitating cross-border remittances, and developing a

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    © All Rights Reserved
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    of 9

    Challenges and Opportunities for Mobile Money –

    Lessons from East & Southern African Countries

    1
    Mobile Money in a snapshot

    Send/receive money
    across networks

    Top up Cashin- Mobile ATM Bulk


    Bill payments Cash collection
    Airtime/ DATA Cashout Banking withdrawals payments

    2
    Mobile Money players

    Mobile Network
    Operator

    Financial VSLAs/ Aggregators/ Distributors/


    Merchants Regulators
    Institutions SACCOs integrators Agents

    3
    Challenges and Opportunities

    The Challenges and Opportunities can best be derived from the


    expectations of the various players in Mobile Money ecosystem.

    As the adoption rate and usage rate increases year on year, so are
    the renewed challenges and opportunities therefrom.

    4
    Challenges
    The key challenges experienced in the East African Market
    include but not limited to:

     Licensing & Regulation


    - Bank-Led Model vs Telco-Led Model
    - Telco regulation vs Central Bank regulation
     Agent/Distributor Distribution and Capitalization
    - Urban vs Rural agent spread
     Low Literacy levels
    - Low levels of financial literacy
    - Rural population
     Insecurity & lack of insurance cover
    - For agents and Distributors 5
    Challenges Con’t
     Reliance on GSM Network
    - System uptime
    - Mobile money as a value-added-service
     Political Interference
    - Case in point is system shutdown during UG elections
     IT security
    - IT savvy workforce and integrators
     Taxation
    - Continuous imposing of new taxes on the product
     Pricing (cost of transaction)
    - In a bid to break even & meet high operational costs
    6
    Opportunities
     Large informal sector
    - Financial inclusion programmes such as group savings
    schemes
     Merchant space untapped
    - Move from cash-based to cashless
     Inter-sector Collaboration
    - Banking, Insurance, Utilities, Tax bodies, NGOs,
    Government bodies/ Parastatals
     Innovations through Open APIs
    - Opens up space for developers to test and launch new
    products (reduced TAT)

    7
    Opportunities
     Cross border trading
    - inward and outward money remittances
     Supportive Regulatory framework
    - Interoperability
    - Non-Exclusivity in the industry
    - Enactment of Adequate Payments Policies
    - Supervision
    - Consumer protection

    8
    Thanks

    Q& A

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