MICROCAPITAL BRIEF: Azerpost, IFC Expanding Rural Mobile Financial Services with Postal Service to Act as Agent for Banks in Azerbaijan

Azerbaijan’s postal services company, Azerpost, is partnering with the World Bank Group’s International Finance Corporation (IFC) to boost financial literacy in the country and introduce a mobile wallet service, with a particular focus on reaching rural areas. The effort, which is supported by the State Secretariat for Economic Affairs of Switzerland (SECO), builds on the recent rollout of in-person financial services by Azerpost. The e-wallet will allow Azerpost customers to access the services of third-party banks, with Azerpost acting as an agent. These developments are part of a wider partnership between Azerbaijan and IFC to develop a suite of electronic services in the country, including e-commerce and the ability to perform government registrations via the internet.

“Cooperation with IFC will help open new opportunities for Azerpost. As a result of this partnership, we will play an important role in financial inclusion of a large part of Azerbaijan’s population that is currently unbanked,” stated the General Director of Azerpost, Emin Afandiyev.

Azerpost provides delivery as well as payment and other financial services via 1,600 locations. Financial information on the organization is available in Azerbaijani.

SECO is a unit of Switzerland’s government that supports “sustainable” growth and poverty reduction within the country and abroad. In its overseas work, SECO prioritizes governance, gender and climate issues as it addresses economic policies, urban infrastructure and support for the private sector. The agency has a budget of CHF 440 million (USD 463 million) as of 2020.

IFC offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2019, it reported total assets of USD 94.3 billion.

The World Bank Group is a multilateral organization whose goal is “to end extreme poverty and promote shared prosperity in a sustainable way.” As of 2020, it has 189 member nations. The group encompasses (1) the International Bank for Reconstruction and Development, the International Development Association, which make up the World Bank; (2) IFC; (3) the Multilateral Investment Guarantee Agency; and (4) the International Centre for Settlement of Investment Disputes. During the fiscal year ending June 2019, the World Bank Group disbursed funds totaling USD 44.6 billion.

By Jessica McLeod, Research Associate

Sources and Additional Resources

IFC press release
https://ifcextapps.ifc.org/IFCExt/Pressroom/IFCPressRoom.nsf/0/8A2527F526A5095A852585840029C69D

Azerpost homepage
https://www.azerpost.az

Azerpost 2018 financial report
http://www.azerpost.az/uploads/maliyyehesabatlari/Az%C9%99rpo%C3%A7t%20MMC_31.12.2018_final_aze.pdf

Azerpost webpage on its World Bank Group partnership
https://azerpost.az/en/page/project-world-bank

SECO homepage
https://www.seco.admin.ch

IFC homepage
https://www.ifc.org/

World Bank Group homepage
https://www.worldbank.org/

World Bank Group Annual Report 2019
https://openknowledge.worldbank.org/handle/10986/32333

Previous MicroCapital article on SECO
https://www.microcapital.org/microcapital-brief-azerbaijan-implements-movable-collateral-registry-credit-bureau-with-technical-assistance-from-ifc-funding-from-seco/

Previous MicroCapital article on IFC
https://www.microcapital.org/microcapital-brief-ipak-yoli-bank-of-uzbekistan-ifc-collaborate-to-manage-currency-risk-increase-local-currency-financing-for-smes/