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IB Assignment 2-Roshan and M-Paisa
IB Assignment 2-Roshan and M-Paisa
MKT 201
Roshan & M-Paisa: The Promise of Mobile Money in Afghanistan
Assignment 2
Submitted to;
Bilal Ahmed Chohan
Submitted by;
Maira Jawad (361701)
Muhammad Anas Ali (361687)
MBA2k22
Ans.
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Q2. What are the challenges Roshan faces to scale M-Paisa? Will Roshan face
similar issues in another country? Create a comparison of issues between
Afghanistan and a country of your choice.
Ans.
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Will Roshan face similar issues in another country?
Certainly, Roshan is expected to encounter comparable hurdles when expanding M-
Paisa to other nations. While the specific obstacles will differ based on each country's
circumstances, there are overarching patterns that are anticipated to be relevant across
diverse markets. Apart from the overarching obstacles, Roshan might confront unique
challenges specific to each country when expanding M-Paisa. For instance, the tardy
government regulation of mobile money can result in industry uncertainty.The extensive
informal economy can pose difficulties for mobile money providers aiming to reach this
particular segment of the population.
These issues however can be overcome through following measures:
● Engagement with Regulatory Bodies: Roshan could actively involve itself with
regulatory authorities in the target market to streamline the acquisition of licenses
and align with the policies of the targeted country.
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al change - Less severe climate change
- Less complex licensing
- Complex licensing procedures - Data procedures - Fewer data privacy
Legal privacy concerns concerns
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manage partnerships still valuable
Notable differences arise when comparing Afghanistan and Iran based on multiple
factors. Iran has a more stable and well-defined regulatory framework than Afghanistan,
which seems to be more dynamic and complicated. Afghanistan's low literacy rate and
information scarcity make it difficult to provide comprehensive customer education,
while Iran's higher literacy rate makes providing customer education easier.
Afghanistan's weaker infrastructure raises security concerns because it increases the
risk of fraud and necessitates the use of strong security measures. Iran, on the other
hand, has a more robust security framework, which allays worries about fraud.
Afghanistan faces infrastructure problems that affect the availability of dependable and
reasonably priced services, including inadequate internet connectivity and bad
telecommunications. However, consistent and reasonably priced services are easier to
provide in Iran thanks to its reasonably developed telecommunications network and
robust internet access. Both countries recognize the value of local partnerships; Iran
views them as helpful for utilizing local resources, but they are not as significant overall.
Afghanistan highlights the importance of these partnerships in gaining access to local
knowledge.
Ans. There are several recommendations along with the risks involved in them for
Roshan and its management team, including:
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● Strengthen Security Measures
Roshan and its management team should actively engage with the Afghan
government and regulatory bodies to establish a supportive legal and regulatory
framework for mobile money services, addressing any regulatory challenges.
However, navigating the regulatory landscape can be complex and time-
consuming. Delays or changes in regulations may hinder the scalability of M-
Paisa. Roshan should maintain open communication with regulators and be
prepared to adapt to evolving regulatory requirements.
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● Improve Customer Support
Focus on improving the user experience of the M-Paisa platform to attract and
retain users. Regular updates and improvements should be implemented to meet
evolving user expectations. But, technical challenges and the need for ongoing
updates could be demanding. Roshan should invest in a dynamic development
team and be responsive to user feedback for continuous improvement.
The overall risks associated with the above given recommendations include:
● Market Competition
As mobile money services continue to grow, Roshan may face competition from
other providers. They should be prepared to differentiate themselves and
continuously innovate to stay ahead in the market.
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● User Adoption and Trust
There is a risk that some users may be hesitant to adopt M-Paisa due to limited
financial literacy or concerns about security. Roshan should address these
concerns through educational initiatives and robust security measures.