MICROCAPITAL BRIEF: International Finance Corporation, Bill and Melinda Gates Foundation to Provide $3.9m in Advisory Services to Airtel Uganda to Expand Mobile Money

The International Finance Corporation (IFC), a member of the US-based World Bank Group that aims to improve the living standards of people in developing countries, recently announced that it will partner with the Bill and Melinda Gates Foundation, a US-based nonprofit that supports innovations in health and education, to provide advisory services valued at USD 3.9 million to Airtel Uganda, a subsidiary of Indian telecommunications company Bharti Airtel. The purpose of the three-year agreement is to expand access to mobile money services in Uganda.

The Bill and Melinda Gates Foundation will provide the funding, while IFC will “provide advisory services on agent network management and product development” in an effort to increase the number of Airtel Uganda customers who use mobile money. Greta Bull, IFC’s Head of Micro Retail Advisory Services in Sub-Saharan Africa, said, “Mobile money offers great potential in extending formal financial services also to the low-income market, and our partnership with Airtel Uganda will further that cause.”

As of December 2013, Bharti Airtel claimed approximately 287 million subscribers in 20 countries across Africa and Asia. As of the same year, Airtel Uganda had 7.4 million subscribers. IFC has 184 member countries and reported total assets of USD 77.5 billion as of fiscal year-end 2013. As of July 2013, Bill and Melinda Gates Foundation had a total endowment of USD 36.4 billion and has awarded USD 26.1 billion in grants since its inception in 1994.

By Emily Teleposky, Research Associate

About Bharti Airtel:
Founded in 1995, Bharti Airtel (Airtel) is an Indian telecommunications company headquartered in New Delhi. Airtel operates Airtel Money, whereby users can transfer money, pay bills and perform financial transactions from their mobile phones. As of December 2013, Airtel claimed approximately 287 million subscribers in 20 countries across Africa and Asia.

About International Finance Corporation (IFC):
The International Finance Corporation (IFC), a US-based multilateral development bank and member of the World Bank Group, offers loans, equity investments, advisory and risk mitigation services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. IFC has 184 member countries and reported total assets of USD 77.5 billion as of fiscal year-end 2013.

About the Bill and Melinda Gates Foundation:
Launched in 1994, the Bill and Melinda Gates Foundation (BMGF) is a US-based nonprofit organization that provides grants to organizations with the aim of enhancing health care, reducing poverty and expanding access to education and information technology. The foundation’s “Financial Services for the Poor” initiative focuses on providing people with secure places to save money. To support this initiative, the foundation works with financial organizations to increase access to technology and to forge partnerships among mobile phone companies, banks and microfinance institutions. As of July 2013, BMGF has a total endowment of USD 36.4 billion, 1,100 employees, operations in approximately 100 countries and has awarded USD 26.1 billion in grants since its inception.

Additional Sources and Resources:

[1]  IFC and Airtel Money to Expand Access to Mobile Financial Services in Uganda, http://ifcextapps.ifc.org/IFCExt/Pressroom/IFCPressRoom.nsf/0/D1F400C382A3338842257D56003D4C5B?opendocument

[2]  MICROCAPITAL BRIEF: “Airtel, Grameen Foundation, Plan International to Launch Mobile Money Platform for Savings Groups in Uganda Under Which All Group Members Must Approve Each Transaction Via SMS,” September 9, 2014,https://www.microcapital.org/microcapital-brief-airtel-grameen-foundation-plan-international-to-launch-mobile-money-platform-for-savings-groups-in-uganda/under-which-all-group-members-must-approve-each-transaction-via-sms/

[3] MICROCAPITAL BRIEF: “Airtel Launches Mobile Money Platform in Uganda”, February 12, 2102, https://www.microcapital.org/microcapital-brief-ugandas-airtel-launches-mobile-money-platform/

[4] MICROCAPITAL BRIEF: “International Finance Corporation (IFC) Announces $1m in Advisory Services to Airtel Zambia to Strengthen Financial Inclusion,” August 27, 2014, https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-announces-1m-in-advisory-services-to-airtel-zambia-to-strengthen-financial-inclusion/

[5] MicroCapital Universe Profile: Bharti Airtel, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bharti+Airtel

[6] MicroCapital Universe Profile: International Finance Corporation, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29

[7] MicroCapital Universe Profile: The World Bank Group, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=The+World+Bank+Group

[8] MicroCapital Universe Profile: Bill and Melinda Gates Foundation, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bill+and+Melinda+Gates+Foundation

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