CGAP (Consultative Group to Assist the Poor), a US-based nonprofit research and policy center, the Grameen Foundation, a US-based nonprofit that seeks to increase business opportunities and telecommunication services for poor people in rural areas, and Mobile Telecommunications Network (MTN) Uganda, the Ugandan arm of South African telecommunications company MTN Group, recently announced plans to launch an initiative to research and develop new mobile financial products. The organizations will provide a total of USD 1 million in financing for the project in undisclosed portions.
The initiative, which will build on prior research of the Grameen Foundation’s Application Laboratory (AppLab) in Uganda, aims to develop products that are both commercially feasible for financial service providers and suitable for low-income clients. “To achieve our goal of financial inclusion for all, the industry needs to move beyond mobile payments and provide a full array of pro-poor mobile financial products,” said Tilman Ehrbeck, CEO of CGAP.
CGAP is supported by approximately 40 development agencies and private foundations. CGAP reported a budget of USD 22.5 million for the fiscal year ending June 2012. Grameen Foundation reported total revenue of USD 17.8 million and total assets of USD 24.1 million as of March 31, 2012. As of December 31, 2011, MTN reports total assets of ZAR 181 billion (USD 19.6 billion), with approximately 165 million subscribers in 21 countries in Africa and the Middle East.
By Nicole Boyd, Research Associate
About CGAP (Consultative Group to Assist the Poor)
CGAP (Consultative Group to Assist the Poor) is a US-based nonprofit policy and research center dedicated to providing financial access to poor people worldwide. CGAP is supported by approximately 40 development agencies and private foundations. Its mission is to provide market intelligence, to promote standards and to offer advisory services to governments, microfinance providers, donors and investors. CGAP reported a budget of USD 22.5 million for the fiscal year ending June 2012. CGAP is co-located with the offices of the World Bank Group in Washington DC.
About Grameen Foundation
The Grameen Foundation, a nonprofit based in Washington, DC, 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 revenue of USD 17.8 million and total assets of USD 24.1 million as of March 31, 2012.
About Mobile Telecommunications Network (MTN)
Established in South Africa in 1994, Mobile Telecommunications Network (MTN) Group is a multinational telecommunications provider that provides cellular telephone service. MTN Group also operates Mobile Money, a financial services platform that can be used on cellular devices. As of December 31, 2011, MTN reports total assets of ZAR 181 billion (USD 19.6 billion), with approximately 165 million subscribers in 21 countries in Africa and the Middle East.
Sources and Additional Resources:
CGAP. “CGAP, Grameen Foundation and MTN to Invest in Mobile Money Products,” http://www.cgap.org/news/cgap-grameen-foundation-and-mtn-invest-mobile-money-products
MicroCapital. April 1, 2013, “MICROCAPITAL BRIEF: MTN Mobile Money, Mobile Financial Services (MFS) Partner to Launch KwikAdvance Payday Loans in Ghana,” https://www.microcapital.org/microcapital-brief-mtn-mobile-money-mobile-financial-services-mfs-partner-to-launch-kwikadvance-payday-loans-in-ghana/
MicroCapital. March 18, 2013, “MICROCAPITAL BRIEF: Boston University, CGAP Partner on Financial Inclusion Regulation Website, Request Submissions of Material from Microfinance Stakeholders,” https://www.microcapital.org/microcapital-brief-boston-university-cgap-partner-on-financial-inclusion-regulation-website-request-submissions-of-material-from-microfinance-stakeholders/
MicroCapital. May 23, 2012, “MICROCAPITAL BRIEF: Grameen Foundation, KfW Bankengruppe, Access Africa Fund Invest in Mobile Microfinance Institution Musoni Kenya,” https://www.microcapital.org/microcapital-brief-grameen-foundation-kfw-bankengruppe-access-africa-fund-invest-in-mobile-microfinance-institution-musoni-kenya/
MicroCapital. March 29, 2012, “MICROCAPITAL BRIEF: Western Union, MTN Launch Mobile Money Transfer Service in Uganda,” https://www.microcapital.org/microcapital-brief-western-union-mtn-launch-mobile-money-transfer-service-in-uganda/
MicroCapital Universe Profile: CGAP (Consultative Group to Assist the Poor)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=CGAP+%28Consultative+Group+to+Assist+the+Poor%29
MicroCapital Universe Profile: Grameen Foundation ? http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Grameen+Foundation
MicroCapital Universe Profile: Mobile Telecommunications Network (MTN) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Mobile+Telecommunications+Network+%28MTN%29
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