The International Finance Corporation (IFC), the private-investment arm of the US-based World Bank Group, recently announced that it will enter into an advisory services agreement with Airtel Zambia, a subsidiary of the Indian telecommunications company Bharti Airtel. Under the agreement, Airtel Zambia will receive advisory services valued at USD 1 million from IFC over a period of three years.
The aim of the advisory project is to increase access to mobile financial services in Zambia, where two-thirds of the adult population is financially excluded. IFC will undertake market research on “agent network management and business strategy development”[1] and advise Airtel Zambia on these issues.
The advisory services agreement is part of the Partnership for Financial Inclusion project, a joint initiative of IFC and the MasterCard Foundation, a Canada-based private foundation. The project is valued at USD 37.4 million and aims to expand microfinance and mobile financial services in Sub-Saharan Africa over a period of five years, from 2012.
Ms Greta Bull, IFC’s program manager for the Partnership for Financial Inclusion, said that “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. Financial inclusion is an important tool in promoting inclusive economic growth that can have significant impact on livelihoods”[1]. Ms Brenda Thole, Director of Airtel Money in Zambia, added that “a key focus area for Airtel Money is to support the government’s mandate to enhance financial inclusion and to reach out to the unbanked population who may still have fears of mainstream banking or believe the services are too costly”[1].
As of December 2013, Airtel claimed approximately 287 million subscribers in 20 countries in Africa and Asia. IFC has 184 member countries and reported total assets of USD 77.5 billion as of fiscal year-end 2013. As of 2014, the MasterCard Foundation reported approximately USD 9 billion in assets.
By Alíz Crowley, Research Associate
About Bharti Airtel
Founded in 1995, Bharti Airtel (Airtel) is an Indian telecommunications company headquartered in New Delhi. Airtel operates Airtel Money, whereby users can transfer money, pay bills and perform financial transactions from their mobile phones. As of December 2013, Airtel claimed approximately 287 million subscribers in 20 countries including Bangladesh, Burkina Faso, Chad, Congo, Democratic Republic of the Congo, Gabon, Ghana, India, Kenya, Madagascar, Malawi, Nigeria, Niger, Rwanda, Seychelles, Sierra Leone, Sri Lanka, Tanzania, Uganda and Zambia.
About International Finance Corporation (IFC)
The International Finance Corporation (IFC), a US-based multilateral development bank and member of the World Bank Group, offers loans, equity investments, advisory and risk mitigation services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. IFC has 184 member countries and reported total assets of USD 77.5 billion as of fiscal year-end 2013.
About MasterCard Foundation
Based in Toronto, Canada, the MasterCard Foundation is a private foundation with the goal of enabling people living in poverty to improve their lives through increased access to microfinance and education. The foundation was established in 2006 by a gift of shares from US-based payment processor MasterCard Worldwide during the company’s initial public offering. As of 2014, the MasterCard Foundation reported approximately USD 9 billion in assets.
Sources and Additional Resources
[1] International Finance Corporation News, IFC, The MasterCard Foundation and Airtel Money to expand access to mobile money in Zambia
MicroCapital, August 23, 2014, Government of Canada, International Finance Corporation (IFC) Support Small, Medium-sized Agricultural Enterprises in Ukraine
MicroCapital, June 17, 2014, International Finance Corporation (IFC), MasterCard Foundation, Tigo to Expand Mobile Financial Services in Ghana
MicroCapital, March 10, 2014, Airtel Zambia to Include Life Insurance Coverage In Mobile Subscriber Plans
MicroCapital Universe Profile: International Finance Corporation (IFC)
MicroCapital Universe Profile: MasterCard Foundation
MicroCapital Universe Profile: Bharti Airtel
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