IFC signed an advisory services agreement with Airtel Zambia to increase access to mobile financial services in the Zambian market.
The value of the agreement is $1 million.
IFC, a member of the World Bank Group, will provide market research and advisory services on agent network management and business strategy development.
The project is part of the Partnership for Financial Inclusion, a $37.4 million joint initiative of IFC and The MasterCard Foundation to expand microfinance and advance mobile financial services in Sub-Saharan Africa.
The aim of the 3-year project is to assist Airtel Money Zambia in building a mobile money operation. 66 percent of the adult population is currently excluded from formal financial services in Zambia.
Brenda Thole, Airtel Money Director Zambia, said: “A key focus area for Airtel Money is to support the government’s mandate to enhance financial inclusion and reach out to the un-banked population who may still have fears of mainstream banking.”
Kenya’s M-PESA is used by over 70 percent of Kenyan adults. In Tanzania, recent FinScope data show that the use of mobile money services has helped increase the rate of financial inclusion from 15.8 percent to 57.4 percent in four years.
Greta Bull, IFC Regional Manager, Advisory Services, Financial Institutions Group, Sub-Saharan Africa, Latin America and the Caribbean, said, “Mobile phone usage is very high in Zambia making it an ideal market in which to leverage technology to reach those who have previously been excluded from formal financial services.”
