Natsave and Airtel Money have announced the launch of the Fikiliza overdraft service, a new initiative aimed at boosting financial inclusion in Zambia. This service provides instant credit to Airtel Money users, addressing the needs of unbanked populations and aligning with Zambia’s growing mobile money sector, which accounted for 56% of all retail payments in 2023.
The partnership between Natsave and Airtel Money is part of a broader trend where financial institutions collaborate with telecom operators to expand digital financial services in Africa. The Fikiliza service enables Airtel Money users to access instant overdraft facilities directly through their mobile wallets. This feature is particularly beneficial for individuals and small business owners who may lack access to traditional banking services, providing them with a convenient and secure means to obtain short-term credit.
Airtel Money has played a crucial role in advancing mobile financial services across Africa. In Zambia, the platform has seen significant growth, contributing to the country’s mobile money sector’s prominence in retail payments. This surge underscores the increasing reliance on mobile money platforms for everyday transactions and financial services.
The collaboration between Natsave and Airtel Money leverages the extensive reach of mobile networks to deliver financial services to unbanked and underbanked populations. For instance, in August 2023, Airtel Money Zambia partnered with Mastercard to launch a digital payment option, granting users access to Mastercard’s global network of merchants.
Additionally, in July 2024, Airtel Zambia partnered with the Zambia Industrial and Commercial Bank (ZIBC) to provide SMEs with affordable internet and devices, improving connectivity for small businesses and enabling them to harness digital tools for growth and increased productivity.
The introduction of the Fikiliza overdraft service is expected to have a positive impact on Zambia’s economy by empowering small businesses and individuals with the financial tools necessary for growth and development. By providing accessible credit through a platform that many Zambians already use, this initiative addresses a critical gap in the financial services sector.
As mobile money continues to gain traction in Zambia and across Africa, collaborations like that of Natsave and Airtel Money are likely to play a pivotal role in shaping the future of financial services on the continent. These partnerships not only enhance financial inclusion but also drive innovation in the delivery of financial products and services, catering to the unique needs of African markets.
Furthermore, Airtel Money’s upcoming initial public offering (IPO), planned for 2025, underscores its commitment to expanding its services and influence across Africa. The IPO is expected to support further investments in mobile financial services, enabling Airtel Money to scale offerings like Fikiliza and deepen its impact on financial inclusion across the continent.
In conclusion, the launch of the Fikiliza overdraft service by Natsave and Airtel Money marks a significant milestone in Zambia’s financial sector. It exemplifies how strategic partnerships can leverage technology to provide inclusive financial solutions, fostering economic growth and development in underserved communities.
