MTN South Africa, one of Africa’s largest telecommunication operators has partnered with IFC, an arm of the World Bank to invest in MoMo. The deal will unlock $2 million (R28 million) dedicated to its Mobile Money Service.
The funds raised will go into the recruitment, enrollment, and training of 10,000 Mobile Money agents. These agent businesses allow MTN’s clients cash-in and cash-out using ATMs and Point-of-Sale machines. In turn, the agents benefit from a commission dependent on the value of each transaction.
Felix Kamenga, the Chief officer of mobile financial services MTN South Africa points out IFC’s unrivaled contribution in ” funding and advisory services” in fintech operations across Africa. He further pointed out the ripple effect from the hiring of 10,000 agents to “local communities and economies.”
MTN’s MoMo service will allow subscribers to send and receive money through their cellphones. Since the 2020 launch, MTN’s MoMo service has significantly grown to over 2 million active users across South Africa.
The cash withdrawal agency model is popular in South Africa where the agents who have already operated businesses allow MTN’s clients to carry out cardless withdrawals. The agents earn a commission of the transactional value.
Source article Business Insider