MICROCAPITAL BRIEF: TVL Launches M-Vatu Mobile Money in Vanuatu

Telecom Vanuatu Limited (TVL), a mobile network operator in Vanuatu, recently launched the mobile money service M-Vatu with technical and financial assistance from the UN’s Pacific Financial Inclusion Programme (PFIP) and the Australian government. The platform, which allows users to send and receive money via mobile phones, is available to TVL customers free of charge and does not require a bank account.

Barlen Lutchmoodoo, the CEO of TVL, was quoted as saying, “Vanuatu is primarily a cash-based economy. We are confident that people will see value in using mobile money given the convenience, safety and affordability. We also see M-Vatu playing a crucial role in accelerating e-commerce and will soon extend the service to people living in outer islands.” The extension to more rural locations is scheduled to take place during 2020. M-Vatu is currently available in the capital city of Port Vila and the nearby islands Malekula, Santo and Tanna.

Established in 1978, TVL provides landline, mobile telephone and internet services in Vanuatu. The firm, which is owned by Fiji’s government-controlled Amalgamated Telecom Holdings (ATH), developed M-Vatu with technical assistance from ATH’s affiliate, Vodafone Fiji, which operates the M-Paisa mobile money service in Fiji. As of 2019, TVL reports operating assets of USD 79.6 million.

Vodafone Fiji, which is minority-owned by the UK-based Vodafone Group, is a telecommunications company that was launched in Fiji in 1994. As of 2019, it reports operating assets of USD 412 million.

ATH is a holding company that was founded in 1998 as a vehicle through which Fiji’s government consolidated investments in the telecommunications sector. Its members provide telecommunications products and services, internet- and data-related products and services, transaction management, directory services and business-process outsourcing. As of 2019, ATH has total assets amounting to USD 1.1 billion. In addition to Fiji and Vanuatu, it has operations in American Samoa, Australia, the Cook Islands, Kiribati, New Zealand, Papua New Guinea, Samoa and Singapore.

Launched in 2008, PFIP seeks to increase the number of Pacific Islanders who have ongoing access to affordable financial services and education on the use of these services. The programme is administered by the UN Capital Development Fund (UNCDF) and the UN Development Programme (UNDP) with funding from the governments of Australia and New Zealand as well as the European Union. As of 2018, PFIP has reached 2 million people in Fiji, Papua New Guinea, Samoa, the Solomon Islands, Timor Leste, Tonga and Vanuatu through 44 joint projects with financial service providers.

By Anna Gravois, Research Associate

Sources and Additional Resources

PFIP press release
http://www.pfip.org/newsroom/programme-update/2019-2/mobile-money-services-now-available-in-vanuatu/

TVL homepage
http://www.tvl.vu

ATH homepage
http://www.ath.com.fj

ATH 2019 financials
http://www.ath.com.fj/images/athannualreport2019.pdf

Vodafone Fiji homepage
https://www.vodafone.com.fj

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