The International Finance Corporation (IFC), a member of the World Bank Group, has partnered with eTranzact, an online payment system based in Nigeria, to launch Rural Telephony Project (RTP) MobileMoney. The goal of the program is to reach rural people in Nigeria – who often lack access to banking services – through the use of mobile phones.
RTP MobileMoney is partnering with three microfinance institutions (MFIs): Development Exchange Center (DEC) based in Bauchi in the north, Self-Reliance Economic Advancement Program (SEAP) based in Kwara in the west and Ogene based in Enugu in the south. Each MFI will have a distinguishing mobile account numbering scheme and will serve as a point of contact for the unbanked.
As of 2008, DEC had USD 5.1 million in total assets, a gross loan portfolio of USD 4.8 million and 69,000 borrowers with an average loan balance of USD 69.8 per borrower. As of 2008, SEAP had USD 5.6 million in total assets, a gross loan portfolio of USD 5.4 million, 46,000 active borrowers and 67,000 depositors with USD 3.5 million in total deposits. Financial information is unavailable for Ogene.
The specific services that customers will be able to perform using RTP MobileMoney are currently unknown.
By Conner Brannen, Research Assistant
About International Finance Corporation (IFC):
A member of the World Bank Group, the International Finance Corporation (IFC) uses loan and debt securities, equity investments and guarantees with the intent of alleviating poverty. It invests in financial institutions and other companies in emerging markets as well as providing technical assistance. The IFC has 182 member countries that “collectively determine its policies, and approve investments.” In fiscal year 2009, its new investments totaled USD 14.5 billion.
About eTranzact:
eTranzact International is an online real-time payment system. Launched in September 2003 in Nigeria, eTranzact?now operates in Ghana, Tanzania, Zimbabwe, Cote d’Ivoire and the UK. Financial information is not available for eTranzact.
About Development Exchange Center (DEC):
Established in 1987 in Bauchi, Nigeria, Development Exchange Center (DEC) works “to empower women to improve their living conditions and status through integrated development services and initiatives,” including microlending. As of 2008, DEC had USD 5.1 million in total assets, a gross loan portfolio of USD 4.8 million and 69,000 borrowers with an average loan balance of USD 69.8 per borrower.
About Self-Reliance Economic Advancement Program (SEAP):
Established in 1998 in Nigeria, the Self-Reliance Economic Advancement Program (SEAP) works to bridge the development gap between the rural and urban communities towards solid financial and economic empowerment. The products and services offered by SEAP include: loans, voluntary savings, insurance and training and consulting. As of 2008, SEAP had USD 5.6 million in total assets, a gross loan portfolio of USD 5.4 million, 46,000 active borrowers and 67,000 depositors with USD 3.5 million in total deposits.
Sources and Additional Resources:
AllAfrica: “IFC Partners Etranzact On Mobilemoney Project,” June 21, 2010: http://allafrica.com/stories/201006210193.html
MicroCapital Universe Profile: International Finance Corporation (IFC): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29
MICROCAPITAL BRIEF: KfW Entwicklungsbank (KfW) and Norwegian Microfinance Initiative (NMI) Commit Total of $11.6m to Goodwell West Africa to be Invested in Microfinance Sector in Ghana and Nigeria, June 11, 2010: https://www.microcapital.org/microcapital-brief-kfw-entwicklungsbank-kfw-and-norwegian-microfinance-initiative-nmi-commit-total-of-11-6m-to-goodwell-west-africa-to-be-invested-in-microfinance-sector-in-ghana-and-nigeria/
MICROCAPITAL BRIEF: Gates Foundation, USAID Offer $15m to Initiators of Mobile Money Services in Haiti, June 11, 2010: https://www.microcapital.org/microcapital-brief-gates-foundation-usaid-offer-15m-to-initiators-of-mobile-money-services-in-haiti/
MICROCAPITAL BRIEF: Faulu Kenya, a Microfinance Bank Based in Nairobi, Signs Partnership Deal with PesaPoint, a Private Provider of ATM Services, June 11, 2010: https://www.microcapital.org/microcapital-brief-faulu-kenya-a-microfinance-bank-based-in-nairobi-signs-partnership-deal-with-pesapoint-a-private-provider-of-atm-services/
MICROCAPITAL BRIEF: One of the Largest Mobile Operators in Kenya, Safaricom, and Equity Bank, a Microfinance Bank, Join Together to Launch Mobile Banking Program, June 2, 2010: https://www.microcapital.org/microcapital-brief-one-of-the-largest-mobile-operators-in-kenya-safaricom-and-equity-bank-a-microfinance-bank-join-together-to-launch-mobile-banking-program/
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