The Ugandan subsidiary of Bharti Airtel, an Indian telecommunications services provider with operations in 150 countries; Grameen Foundation, a US-based nonprofit organization; and the Ugandan arm of Plan International, a UK-based child rights and anti-poverty nonprofit that operates in 48 countries, have entered into a partnership to launch a mobile money platform that is intended to serve savings groups in Uganda.
Stephen Waiswa, a corporate sales manager at Airtel Uganda, stated that savings groups in Uganda often “request a better way to store and deposit funds” that minimizes the need to travel long distances to use traditional financial services. Notably the mobile product is designed to mirror the system of savings groups, in which one member holds the locked money container, while the others hold keys so that no individual is able to access the money without the entire group present. To access the mobile money system, one member will be given a mobile-phone SIM card, and the rest of the group members are issued personal identification numbers (PINs). When the SIM-holder requests a transaction, all PIN holders must approve it via text message (SMS). The Global Systems for Mobile Association (GSMA), a London-based association of 1,000 mobile operators and associated companies, is donating the funding for this service through its mWomen programme, which seeks to develop mobile services that address the gender gap in the usage of mobile technology in Africa, the Asia-Pacific region and the Middle East.
As of August 2012, Bharti Airtel has total assets of USD 636 billion and approximately 261 million subscribers across 150 countries. As of March 31, 2013, Grameen Foundation reported total assets of USD 19.2 million. As of 2014, GSMA’s members include approximately 800 mobile operators and approximately 200 software, mobile, technology, media and entertainment organizations.
By Sarah Luo, Research Associate
About Bharti Airtel
Founded in 1995, Bharti Airtel (Airtel) is an Indian telecommunications
company. In addition to traditional mobile phone service, Airtel operates Airtel Money, which allows users to transfer money, pay bills and perform other financial transactions directly on a mobile phone. As of August 2012, Airtel has total assets of USD 636 billion and approximately 261 million subscribers across 150 countries.
About the Grameen Foundation
The Grameen Foundation, a nonprofit based in the US city of Washington,
provides financial, technological and managerial support to provide new
business opportunities and telecommunication services for poor people in
rural areas. Though it is independent of the Grameen Bank, Dr Muhammad
Yunus, the founder of the Grameen Bank, serves on the foundation’s
Board of Directors. Grameen Foundation reported total assets of USD 19.2
million as of March 31, 2013.
About Global Systems for Mobile Association (GSMA): Global Systems for
Mobile Association (GSMA) is a London-based association of mobile
operators and related companies that support the regulation,
distribution and promotion of mobile telecommunication systems across
the financial services, healthcare, media, transport and utility sectors
around the world. As of 2014, GSMA’s members include approximately 800
mobile operators and approximately 200 software, mobile, technology,
media and entertainment organizations.
About Plan International
Plan International is a UK-based children’s development organization that was
founded in 1940. It works in 48 developing countries across Africa, Asia
and the Americas with the goal of promoting child rights and lifting
children out of poverty. As of June 2010, Plan International reported
total assets of EUR 317 million (USD 413 million) with an annual net
income of EUR 79 million (USD 103 million). More recent financial information is not available.
Sources and Additional Resources:
Grameen Foundation: Airtel Uganda, Grameen Foundation and Plan Uganda Introduce a New Group Savings Product for Village Savings and Loan Associations
MicroCapital, April 8, 2014: Grameen Foundation Receives Innovation Grant from GSMA’s mWomen
MicroCapital, August 28, 2013: Bharti Airtel, MicroEnsure Launch Mobile Microinsurance Service in Africa
MicroCapital, November 9, 2010: Smart Campaign Partners With African Microfinance Network (AFMIN) and Plan International to Promote Client Protection Among African and Asian MFIs
MicroCapital Universe Profile: Plan International
MicroCapital Universe Profile: Global Systems for Mobile Association (GSMA)
MicroCapital Universe Profile: Grameen Foundation
MicroCapital Universe Profile: Bharti Airtel
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