You are currently browsing the tag archive for the ‘Tanzania’ tag.

> Posted by Sonja Kelly, Director of Research, CFI

(click to enlarge)

This week at the Mobile World Congress in Barcelona, Verizon announced that it’s unveiling new 5G wireless connectivity for its mobile customers. More “G”s are not a surprising announcement, as mobile networks strut their speed at this annual event like body builders at a weightlifting competition. For those unfamiliar with what exactly 5G means, the network will provide speeds of a gigabit per second and faster, but only in a select group of cities in high income economies.

As we celebrate global innovation, we can also take a moment to highlight those who continue to have limited to no connectivity—with implications for global development. While 5G revs up, an astounding number of people are left out of mobile connectivity and therefore mobile money—even in countries known for their digital financial services uptake.

Our CFI Fellow Leon Perlman examines this phenomenon in his upcoming report. As a sneak preview, in his report Leon shows connectivity maps in a select group of emerging markets, such as the one above. Take this example of Tanzania, a market with growing mobile money usage. In this market, mobile network coverage misses large swaths of rural areas toward the center of the country. Certainly, those areas have lower population densities than other areas, but they are home to many people. The mobile financial services ecosystem depends on connectivity infrastructure that provides reliable and sufficiently high-speed data transmission. Lacking that, people in rural areas are left out in large numbers. In the map above, the blue splotches indicate mobile network coverage, and the dots are where mobile money agents are located.

Read the rest of this entry »

> Posted by Jason Loughnane, Special Projects Manager, DAWN

In 2011, a SIM card in Myanmar cost $1,500 and mobile phones were used by less than 5 percent of the population. Following the entry of two foreign mobile operators in 2011, the price of a SIM card dropped to $1.50. Today, over 90 percent of the country’s population has a cell phone, and over 80 percent of those users have smartphones. And yet, only 6 percent of the population uses a formal financial institution, making the country ripe for adoption of mobile financial services.

Read the rest of this entry »

> Posted by Center Staff

A schoolboy looks at an electric light bulb powered by M-KOPA solar technology, as it illuminates his home in Ndela village, Machakos, Kenya.

2016 was the hottest year on Earth since records began in 1880. For those of us who work in financial inclusion but are fearful about our lack of progress in combating climate change, the following is a spot of good news: at the recent World Economic Forum Annual Meeting in Davos, Ant Financial and the United Nations Environment Program launched the Green Digital Finance Alliance.

Read the rest of this entry »

> Posted by Mark Napier, Director, FSD Africa

The following post was originally published on the FSD Africa blog.

Yesterday, Zambia’s central bank announced it had taken over a commercial bank, Intermarket, after the latter failed to come up with the capital it needed to satisfy new minimum capital requirements. Three weeks ago, a Mozambican bank – Nosso Banco – had its licence cancelled, less than two months after another Mozambican bank, Moza Banco, was placed under emergency administration.

At the end of October, the Bank of Tanzania stepped in to replace the management at Twiga Bancorp, a government-owned financial institution which was reported to have negative capital of TSh21 billion. A week before that, just over the border in Uganda, Crane Bank, with its estimated 500,000 customers, was taken over by the central bank, having become “seriously undercapitalised”. In DR Congo, the long-running saga of BIAC, the country’s third-largest bank, continued in 2016, forced to limit cash withdrawals after the termination of a credit line from the central bank. And in Kenya, Chase Bank collapsed in April, barely six months after the failure of Imperial.

Read the rest of this entry »

> Posted by Center Staff

Janautthan Samudayic Laghubitta Bikash Bank Limited event in Nepal

This post is part of Financial Inclusion Week, a week of global conversation on advancing financial inclusion. This year’s theme is keeping clients first in a digital world. Throughout the week participants will share their thoughts in events and webinars, on social media, and through blog posts. Add your voice to the conversation using #FinclusionWeek.

It is day three of Financial Inclusion Week 2016 and while we are sad to be more than half-way through, we are so excited by the conversations that have already happened! Already, Financial Inclusion Week events have taken place in South Africa, the United Kingdom, Nepal, and Tanzania, among other locations.

Before we dive into a recap of the events that happened yesterday – we encourage you to take another look at the list of webinars happening during the rest of the week and register today to participate. Additionally, we encourage you to join the Twitter conversation with #FinclusionWeek. Starting today, CFI (@CFI_Accion) will be asking a number of questions to the Financial Inclusion Week community focused on the theme, keeping clients first in a digital world.

What’s Happening

In Luxembourg yesterday, the ADA held a panel discussion exploring keeping clients first in mobile banking and microfinance. The conversation was led by Laurent de la Vaissière, Director of the Information & Technology Risk Department at Deloitte and included Devyani Parameshwar, Lead Development Manager of M-PESA at Vodafone, and James Onyutta, Managing Director of Musoni Kenya. You can watch the full conversation below.
Read the rest of this entry »

> Posted by Prateek Shrivastava, Global Director, Channels & Technology, Accion

The National Assembly of the Federal Republic of Nigeria passed the Central Bank of Nigeria (CBN) Act in 2007. The Act included provisions for the creation of the CBN to ensure monetary stability, issuing and maintaining legal tender, and promoting the implementation of best practices including the use of electronic payment systems in all banks across Nigeria.

In the same year, the CBN developed the Financial System Strategy 2020 wherein the need for electronic financial services (amongst many other reforms) to make Nigeria a competitive economy was identified. Since 2008, the CBN has been extremely active in developing and implementing guidelines and frameworks to support the digitization of financial services (for example, all banks and microfinance banks need to have core banking systems, and the use of ATMs is governed) including mobile money and agent banking. The Guidelines on Mobile Money Services in Nigeria were approved and published in June 2009. Most recently, the CBN has also released a licensing framework for “super agents” that banks and other regulated financial services providers can use to bring services to the markets and streets in Nigeria.

Nigeria’s mobile money market hosts about two dozen licensed mobile money operators (MMOs) that include banks and others, which, in spite of their array, have proven inadequate in terms of country coverage and active adoption.

In the recent words of Dipo Fatokun, Director of the Banking and Payment System Department of the CBN, “Expectations of mobile money [in Nigeria] have not fully been met.” Annual mobile money transactions in the country in 2014 exceeded N5 billion (US$25 million), while in Kenya and Tanzania total annual transactions in 2013 were US$22 billion and US$18 billion.

A report from EFINA published in 2014, a full five years after the CBN guidelines for mobile money were put in place, shows that only 800,000 Nigerian adults currently use mobile money, representing less than one percent of the adult population. Today, even arguably the most successful entity, Pagatech Nigeria with its innovative use of technology and strong management team, is advertised sporadically on the streets of Lagos and even less further afield. Awareness is low and therefore adoption is low.

In my opinion, this lack of progress can be attributed to two key issues:
Read the rest of this entry »

> Posted by Center Staff

Impact investing in East Africa has grown strongly over the past five years with over $9.3 billion disbursed, more than 1,000 deals, and roughly 150 investors managing about 200 active investment vehicles. These are among the findings outlined in a new report from the Global Impact Investing Network and Open Capital Advisors, which provides a state of the market analysis for impact investing in the East Africa region. The report examines the supply of global impact investment capital, the demand for investment resources, challenges and recommendations, and the country-level markets. What was found?

Here are a few of the report’s key messages:

  • Kenya dominates impact investing in the region, accounting for more than half of its deployed impact capital and having more than three-times the in-country fund staff of any other country.
  • Uganda ranks a distant second in capital received at 13 percent of that of the region, receiving support from its favorable business and regulatory environments.
  • Despite its GDP being 50 percent bigger than Uganda’s, Tanzania claims about 12 percent of the region’s impact capital, owing its stature in part to its low population density, weak transportation infrastructure, and relatively unpredictable government interjections.

Read the rest of this entry »

> Posted by Center Staff

Good morning! Freshly published is the latest edition of the Financial Inclusion 2020 News Feed, our weekly online magazine sharing the big news in banking the unbanked. Among the stories in this week’s edition are the World Council receiving a USAID award to catalyze affordable housing in Haiti, a multi-partner initiative to train women across Nigeria to become mobile banking agents, and Tanzania setting a new financial inclusion goal. Here are a few more details:

  • The World Council with support from USAID and others will work directly with financial institutions and housing developers to help expand affordable housing financial products and services in Haiti.
  • The Cherie Blair Foundation for Women is working with FirstBank to provide technical, business, and financial literacy training to 2,500 women across Nigeria to become agents for FirstBank’s mobile banking platform.
  • Last week Tanzania set a new goal of extending financial services access to 75 percent of the population in 2016 – as a follow-up to the goal of 55 percent in 2016, which was surpassed in 2014.

For more information on these and other stories, read the latest issue of the FI2020 News Feed here, and make sure to subscribe to the weekly online magazine by entering your email address in the right-hand menu so you can be notified when the latest issue comes out.

Have you come across a story or initiative you think we should cover? Email your ideas to Eric Zuehlke at ezuehlke@accion.org.

> Posted by Eric Zuehlke, Web and Communications Director, CFI

One theme we come across repeatedly at CFI is the discrepancy between financial services access and usage. A central tenet of our vision of financial inclusion is that access isn’t enough; financial services need to meet client needs and actually be used. One example is mobile banking. As is now well known, millions are now accessing financial services for the first time with mobile payment platforms through telcos. As our By the Numbers report found, however, the proportion of financial services accounts that are mobile is much smaller for the world in general – East Africa is the outlier.

I just returned from an exciting two-week assignment through Accion’s Ambassador program with Akiba Commercial Bank in Tanzania. I met with Akiba staff, visited branch offices, and talked with clients. (You can read about my experiences, including a trip to Zanzibar and terrifying/awesome motorcycle taxi trips on the Ambassador blog.) Since I was in the region with the world’s highest adoption of mobile banking, I wanted to take the opportunity to learn more about how Akiba’s mobile banking experience has worked out, both from staff and client perspectives. Has adoption and usage met expectations? What kind of feedback was Akiba hearing from clients? What challenges was Akiba facing with their mobile platform?

Read the rest of this entry »

> Posted by Eric Zuehlke, Web and Communications Director, CFI

The following post was originally published on the Accion Ambassadors blog.

At some point during our walk down the dusty, uneven road packed with minibuses and motorcycles inches away from hitting me, unfamiliar music and sounds blasting from unseen speakers, people selling everything from plastic toys to Adidas shorts to cell phones to furniture, and a profusion of life and color all around, I thought to myself, “This is exactly what I was hoping to see in Tanzania.”

My fellow Accion Ambassador Javier and I were walking with a staff member from Akiba’s headquarters office and Dominik, the assistant branch manager at Akiba’s Temeke branch. Akiba is a commercial microfinance institution based in Dar es Salaam with branches throughout Tanzania. The four of us were off to visit clients down the street from the branch office. Before our walk, Dominik shared some background on Akiba’s work and their clients.

While every Akiba client has a deposit account, not every client has a loan. So for example, the Temeke branch serves over 4,000 clients – 2,100 have a loan while around 2,000 only have deposit accounts. However, “savings is a big problem,” Dominik tells us. “People are not saving regularly.” This is partially because Akiba has only recently promoted savings as part of their client outreach and education. The Temeke branch’s clients are all in the neighborhood and are food vendors, manage their own clothing or cell phone shops, or own other small businesses. The branch’s clients tend to be at Akiba’s “medium” level, with loans ranging from 20 million to 50 million shillings (about US$10,000 to US$25,000 – a much higher amount than I was expecting to be normal). Group solidarity loans are also popular and are smaller loans ranging from 200,000 to 5 million shillings (US$100 to US$2,500).

Read the rest of this entry »

Enter your email

Join 1,963 other followers

Visit the CFI Website

Twitter Updates

Archives

Founding Sponsor


Credit Suisse is a founding sponsor of the Center for Financial Inclusion. The Credit Suisse Group Foundation looks to its philanthropic partners to foster research, innovation and constructive dialogue in order to spread best practices and develop new solutions for financial inclusion.

Note

The views and opinions expressed on this blog, except where otherwise noted, are those of the authors and guest bloggers and do not necessarily reflect the views of the Center for Financial Inclusion or its affiliates.