SPECIAL REPORT: 15k Refugees in Uganda Receive Assistance via AirTel Mobile Money, Cutting Delivery Costs by 47%, Boosting Speed by 42%, Reducing “Money Truck” Problems: UNCDF Reports at European Microfinance Week

At European Microfinance Platformthis month’s European Microfinance Week in Luxembourg, Pamela Eser of the UN Capital Development Fund described her team’s rollout of mobile money to 15,000 refugees in Uganda and 1,800 in Zambia. Most refugees in these countries lack mobile phones, and very few of the participants had used mobile money previously. Under the program, refugees in Zambia received assistance via India-based AirTel Money for eight months. While it took 50 days to get money to newly registered refugees under the previous paper system, the digital system delivered funds in 29 days for 47 percent less cost. The mobile money system also offers greater security and convenience. Under the previous system, recipients had to wait in line at the “money truck” for as many as three days. Plus, as soon as the person’s name was called out and the money handed over, that person sometimes became a target for thieves.

To implement the new system, mobile network operators (MNOs) brought in 46 agents to assist with client training as well as cash-in and cash-out services. In Uganda, nine new communication towers were needed to handle the traffic. Also critical was MNOs supplying enough phones and SIM cards for sale. The UN subsidized a portion of these costs.

At the same session in Luxembourg, Katharina Braun Botao of the German government’s GIZ described her team’s work in Jordan. It focuses on serving women because the gender gap in financial inclusion in that country is triple the world average.

Remittances in Jordan amount to about 10 percent of GDP. The cost to send remittances – at 7.5 percent – is below the world average. However, refugees from Syria and low-income Jordanians pay fees of 9 percent to 20 percent to send money. Ms Braun Botao suggests that introducing digital options may be successful given that – although less than 8 percent of Syrian refugees have bank accounts – 93 percent have mobile phones, nearly half of which are smart phones.

This sponsored feature is part of a series on European Microfinance Week, which was held from November 14 through 16 in Luxembourg by the European Microfinance Platform (e-MFP), a network of over 130 financial-inclusion stakeholders. MicroCapital has been engaged to promote and document the event.

Additional Resources

RUFI Crosses Border with Refugees from South Sudan, Opens Doors in Uganda; Breaking MFIs’ Stereotypes About Victims of Conflict – Insights from European Microfinance Week
https://www.microcapital.org/special-report-rufi-crosses-border-with-refugees-from-south-sudan-opens-doors-in-uganda-breaking-mfis-stereotypes-about-victims-of-conflict-insights-from-european-microfinance-week/

Savings Groups Notch Higher Returns When Not Supported by NGOs; Bank Linkages Correlate with Lower Repayment, More Dropouts
https://www.microcapital.org/special-report-savings-groups-notch-higher-returns-when-not-supported-by-ngos-bank-linkages-correlate-with-lower-repayment-more-dropouts/

European Microfinance Week 2018
http://www.e-mfp.eu/european-microfinance-week-2018/information

MicroCapital Coverage of European Microfinance Week 2012-2018
https://www.microcapital.org/category/european-microfinance-week/

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