MTN South Africa Partners With IFC to Expand Mobile Money (MoMo) Network

Wednesday MTN South Africa announced that it has entered into a $2-million (R28 million) partnership with the International Finance Corporation (IFC), a member of the World Bank Group, to expand the company’s Mobile Money (MoMo) business. The partnership will target the unbanked and underbanked population by establishing a strong network of MoMo agents in the country.

IFC is the largest global development institution focused on the private sector in developing countries. IFC’s mission is to advance economic development by encouraging the growth of private enterprise in developing countries.

MTN SA’s Chief Officer for Mobile Financial Services, Felix Kamenga said in a statement. “IFC has assisted with funding and advisory services in several other Fintech operations in Africa and this partnership provides the opportunity to bridge the digital divide and broaden financial inclusion in South Africa.”

What does the MTN/IFC partnership mean for MoMo?

As part of the partnership, IFC and MTN will recruit 10 000 MoMo agents in 2021. This will increase access to financial service in underrepresented communities. As part of the recruitment, MTN will train and supervise new agents while also providing support if needed.

In addition, MTN and IFC will create and train a team of Trade Development Representatives. The representatives will manage the MoMo agents and manage compliance regulations. MTN MoMo customers do not need a bank account to sign up for the services. They only need a phone number and the service does not charge monthly fees for accounts or transfers.

Kamenga said: “The growth and development of 10 000 MoMo agent businesses across the country not only benefits local communities and economies, but has the ripple effect of many more unbanked and underbanked South Africans having an opportunity to manage their money digitally, wherever they are.”

Adamou Labara, IFC’s Country Manager for South Africa, said MoMo is an example of an essential service for small businesses. “Digital technologies are helping connect businesses with customers and suppliers and increasing access to lending and payment systems for individuals and small businesses,” Labara said.