Johannesburg, South Africa, February 20,
2017 — IFC,
a member of the World Bank Group, together with The MasterCard Foundation
today announced it signed an agreement to a value of $1 million with payments
service provider Zoona to strengthen the reach and depth of its mobile
banking services for low-income people, small-scale entrepreneurs and rural
populations in Zambia.
In Zambia, only about a third of the adult population has access to formal
financial services, which means many people are left to rely on their extended
families and community networks for support to help them pay school fees,
cope with health emergencies, or to source finance for small-scale businesses.
Such financial exclusion can be a significant constraint on individual
and overall economic development.
Zoona was established in Zambia in 2009, and is today the country’s leading
payments service provider. It provides essential financial services through
its mobile money platform, and offers emerging entrepreneurs an opportunity
to provide money transfers and financial services to low-income consumers
through its network of over 1,500 mobile money agents.
“Zoona was founded with the purpose of helping communities thrive. We
work with emerging entrepreneurs to lay the foundation for the sustainable
and inclusive economic growth necessary to tackle today’s challenges and
to secure the future of generations to come. This project will help Zoona
expand its work to increase financial inclusion in Africa,” said Lelemba
Phiri, Chief Marketing Officer at Zoona.
IFC will provide advisory services for three years to assist Zoona to develop
and roll out a new mobile wallet solution that will allow customers to
store and send money, with the aim to reach 300,000 new customers. 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 digital financial services in sub-Saharan Africa. Part of Zoona’s
unique approach is its commitment to co-developing products with the communities
it serves, and this approach will be used for its new mobile wallet product.
Riadh Naouar, head of IFC Financial Institutions Group Advisory Services
in sub-Saharan Africa, said, “Mobile money solutions have been rolled
out across the continent in recent years with remarkable impact on financial
inclusion. Now is the time to focus on the products offered through these
mobile platforms to ensure they meet the needs of low-income people and
small-scale entrepreneurs and truly help improve peoples’ lives.”
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in emerging markets. Working
with 2,000 businesses worldwide, we use our six decades of experience to
create opportunity where it’s needed most. In FY16, our long-term investments
in developing countries rose to nearly $19 billion, leveraging our capital,
expertise and influence to help the private sector end extreme poverty
and boost shared prosperity. For more information, visit www.ifc.org.
About The MasterCard Foundation
The MasterCard Foundation works with visionary organizations to provide
greater access to education, skills training and financial services for
people living in poverty, primarily in Africa. As one of the largest private
foundations its work is guided by its mission to advance learning and promote
financial inclusion to create an inclusive and equitable world. Based in
Toronto, Canada, its independence was established by Mastercard when the
Foundation was created in 2006. For more information and to sign up for
the Foundation’s newsletter, please visit www.mastercardfdn.org.
Follow the Foundation at @MastercardFdn on Twitter.
Zoona is an African Fintech company founded in 2009 with the vision of
helping communities thrive. Since launching, it has created over 3,000
jobs in Zambia, Malawi and Mozambique. It has empowered over 1,500 entrepreneurs
to start their own business and enabled them to earn over $10 million in
earnings. The company has processed over $1 billion in mobile money transactions
and is used by over 1.5 million active consumers.