From unbanked to M-
banked
Tonny K Omwansa
Strathmore University, Research ICT Africa
Nairobi – Kenya
tomwansa@strathmore.edu
tomwansa@gmail.com
MobileActive08, 13-16 Oct 2008
Strathmore South Africa Research ICT Africa

Out of 10 Transactions, how
many are in cash?
Informal Semi-formal Formal
Source: RIA, 2006/2007

Mobile Phones and socioeconomic impact
There is a positive correlation between teledensity and quality
of life indicators. It has been found that mobile communications
contribute significantly towards enhancing income and
improving quality of life – specially in rural areas. There are now
several studies documenting the improvement in prices
received by farmers as a result of better access to mobile
telephony in developing countries of Asia, Africa and Latin
America.
The Vodafone Policy Paper Series ● Number 2 ●
March 2005

Access to FS in Africa

M-PESA Usage
Source: Steadman Report, Omwansa T. 2008

M-PESA Usage
Source: Steadman Report, Omwansa T. 2008

M-PESA Usage
• Swapping virtual currency between Zain, Safaricom, Telcom
- Cashless Society?
Cash Bank
MPESA

M-PESA Usage
Most active and of month and beginning
of new school term

M-PESA Usage
Streamlining M-Finance at a low cost.
Members repay via M-Pesa
Member 1 Send by
M-PESA
Member 2
Microfinance
Group Leader Institution
Send by
Member 10 M-PESA

M–Transfers
http://www.mukuru.com
From diaspora: Pay for airtime, DSTV, Nyama choma,
SimCards, fuel etc
(Zim/SA/..Kenya, Tanzania, Zambia)
http://www.mamamikes.com
Send money for electricity, fees, airtime, shopping
vouchers, mall vouchers, flowers, fuel vouchers etc.

Greater Value – Ecosystem
MNO 1
Bank 1..n
Posta Inter connection Mobile End
Money User
Rural Bank Operator
MFI 1..n
MNO n
Source: IFC
>Strong Banking Sector >Product development
>Sound Regulation (Bills, remittance, top-up,
>Efficient Distribution M-Finance etc)

Ecosystem
Players
Source: IFC

Ecosystem
Players
Source: IFC

Research ICT Africa
17 country, 23000 Households Data preliminary
findings
FACTOR airtime
Sending
IMPACT Receiving airtime
FACTOR IMPACT
Education +vely Education > tertiary, -vely
Age -vely Age -vely
Gender +vely Gender -vely
Urban Dwelling +vely Urban Dwelling -vely
Rural Dwelling -vely Rural Dwelling +vely
Marriage +vely Marriage -vely
Bank Account +vely Bank Account No diff.
Disposable Income +vely Disposable Income -vely