MICROCAPITAL BRIEF: Mobile Financial Services (MFS) Africa to Launch Mobile Money-based Mjara Loans

Mobile Financial Services (MFS) Africa, a mobile payments firm based in South Africa, reportedly has announced that it will launch a mobile money-based product called Mjara Loans. This product initially will be available to users of Mobile Telecommunications Network (MTN) Mobile Money, an arm of South African telecommunications company MTN Group, and it is expected to be extended to other mobile networks.

Mjara Loans can be accessed by dialing a short phone code and inputting the loan amount desired. The credit decision is approximately immediate as is loan disbursal – if approved – through the user’s mobile wallet. The mobile wallet can be used to pay for goods and services at retail locations, pay insurance premiums, pay bills to businesses, send and receive money to and from individuals, and top up MTN airtime.

Users must pay a registration fee of GHS 30 (USD 10) and are eligible for loans as small as GHS 100 (USD 35). Loan fees start at 4 percent of the amount borrowed, depending on the user’s chosen repayment schedule and the length of time he or she has been using Mjara. Repayment schedules can vary between 2 weeks and 3 months, and users can withdraw the funds from MTN Mobile Money service centers or MTN kiosks.

MFS operates in 14 countries in Africa as of 2013. MTN reported total revenue of ZAR 135 billion (USD 13 billion) and total assets of USD 21 billion as of 2013. MTN has approximately 120 million subscribers in 21 countries in Africa and the Middle East as of July 2013.

By Juan Blanco, Research Associate

About Mobile Financial Services (MFS) Africa

Established in Mauritius in 2009, Mobile Financial Services (MFS) Africa is a for-profit firm that offers money transfer services, savings, insurance, consumer credit information services and online payment processing. MFS operates in 14 countries in Africa as of 2013.

About Mobile Telecommunications Network (MTN)

Established in South Africa in 1994, Mobile Telecommunications Network Group (MTN) is a multinational telecommunications provider that provides voice and data communication services to individuals and businesses. MTN also operates MobileMoney, a money-transfer service that can be used on cellular devices. MTN reported total revenue of ZAR 135 billion (USD 13 billion) total assets of USD 21 billion as of 2013. MTN has approximately 120 million subscribers in 21 countries in Africa and the Middle East as of July 2013.

Sources and Additional Resources

[1] Telecompaper, “MFS Africa launches mobile money loans in Ghana,” April 2014, http://www.telecompaper.com/news/mfs-africa-launches-mobile-money-loans-in-ghana–1010344

MicroCapital Story, April 17, 2014, “Airtel, MTN Group Partner to Provide Mobile Money Transfers Between Burkina Faso, Ivory Coast,” https://www.microcapital.org/microcapital-brief-airtel-mtn-group-partner-to-provide-mobile-money-transfers-between-burkina-faso-ivory-coast/

MicroCapital Story, April 1, 2013, “MTN Mobile Money, Mobile Financial Services (MFS) Partner to Launch KwikAdvance Payday Loans in Ghana,” https://www.microcapital.org/microcapital-brief-mtn-mobile-money-mobile-financial-services-mfs-partner-to-launch-kwikadvance-payday-loans-in-ghana/

MicroCapital Story, August 23, 2013, “Mobile Telecommunications Network (MTN) Ghana Launches “ATM Cash Out” Service to Mobile Money Subscribers,” https://www.microcapital.org/microcapital-brief-mobile-telecommunications-network-mtn-ghana-launches-atm-cash-out-service-to-mobile-money-subscribers/

MicroCapital Story, April 19, 2011, “Mobile Telecommunications Network (MTN) Ghana, Hollard Insurance, Mobile Financial Services (MFS) Africa, MicroEnsure Pilot “mi-Life” Mobile Money Insurance Product in Ghana,” https://www.microcapital.org/microcapital-brief-mobile-telecommunications-network-mtn-ghana-hollard-insurance-mobile-financial-services-mfs-africa-microensure-pilot-“mi-life”-mobile-money-insurance-product/

MicroCapital Universe Profile: Mobile Telecommunications Network (MTN) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Mobile+Telecommunications+Network+%28MTN%29

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