Page 12 - GSMA_Congo_Case_Study_ARTWORK
P. 12
ENABLING MOBILE MONEY POLICIES IN THE DEMOCRATIC REPUBLIC OF CONGO
3
Challenges and
outlook
M obile money is still a young industry in the DRC and needs to overcome major challenges related to weak infrastructure
(electricity and roads), lack of a banking infrastructure to create master agents to manage the float, lack of a national
identiication system, low literacy level of most of the population, and the use of a dual currency. Providers are trying
to identify cost-eective ways to address these challenges, such as engaging with local MFIs, designing alternative ways to verify
customer identity, and promoting customer education campaigns.
Despite these challenges, the outlook for market growth is very positive. The country’s large population, lack of alternatives to
the mobile to expand the reach of the formal financial system, an enabling regulatory framework, improving telecommunications
infrastructure (3G mobile licences were inally awarded in June 2012), and GDP growth of around 7%, all signal the enormous potential
of mobile money.
Moreover, this highly competitive market includes some of the world’s most prominent MNOs, which are able to make the right
level of investment, apply lessons from other markets, and are committed to developing the industry in an appropriate and
responsible direction.
For mobile money to reach scale and play a critical role in DRC’s development, the regulator will need to continue to keep the market
safe and sound while taking steps to create a progressive regulatory framework that balances consumer protection with increased
access. The government can also play an important role by partnering with e-money providers to pay civil servant salaries digitally. 9
KYC and transaction limits for salary payments and remittances
The main area in which mobile money could evolve quickly is salary payments. There seems to be high demand for these services,
although providers and the regulator need to work out the right services, addressing both operational and regulatory barriers.
Particularly challenging is inding eicient ways to meet the cash-low needs for these new services, designing new KYC procedures,
and establishing adequate transaction limits.
A very good example of this is when all role players and the BCC got together and yet again discussed all details around the
government salary payment model and processes to be followed. The outcome of this engagement lead to a tri-party
agreement between the MNOs, commercial banks, and the African Central Bank in the DRC to govern all processes,
responsibilities, and the charging model to be adopted by all role players, once again creating a consistent pre-approved
framework for all parties involved.
Martin Siebrits
Executive Head of Mobile Money
Vodacom Congo
9. In May 2013 the government partnered with Airtel to pay the salaries to about 100,000 civil servants via Airtel Money. In the fall the project was scaled down due to some operational challenges.
12
3
Challenges and
outlook
M obile money is still a young industry in the DRC and needs to overcome major challenges related to weak infrastructure
(electricity and roads), lack of a banking infrastructure to create master agents to manage the float, lack of a national
identiication system, low literacy level of most of the population, and the use of a dual currency. Providers are trying
to identify cost-eective ways to address these challenges, such as engaging with local MFIs, designing alternative ways to verify
customer identity, and promoting customer education campaigns.
Despite these challenges, the outlook for market growth is very positive. The country’s large population, lack of alternatives to
the mobile to expand the reach of the formal financial system, an enabling regulatory framework, improving telecommunications
infrastructure (3G mobile licences were inally awarded in June 2012), and GDP growth of around 7%, all signal the enormous potential
of mobile money.
Moreover, this highly competitive market includes some of the world’s most prominent MNOs, which are able to make the right
level of investment, apply lessons from other markets, and are committed to developing the industry in an appropriate and
responsible direction.
For mobile money to reach scale and play a critical role in DRC’s development, the regulator will need to continue to keep the market
safe and sound while taking steps to create a progressive regulatory framework that balances consumer protection with increased
access. The government can also play an important role by partnering with e-money providers to pay civil servant salaries digitally. 9
KYC and transaction limits for salary payments and remittances
The main area in which mobile money could evolve quickly is salary payments. There seems to be high demand for these services,
although providers and the regulator need to work out the right services, addressing both operational and regulatory barriers.
Particularly challenging is inding eicient ways to meet the cash-low needs for these new services, designing new KYC procedures,
and establishing adequate transaction limits.
A very good example of this is when all role players and the BCC got together and yet again discussed all details around the
government salary payment model and processes to be followed. The outcome of this engagement lead to a tri-party
agreement between the MNOs, commercial banks, and the African Central Bank in the DRC to govern all processes,
responsibilities, and the charging model to be adopted by all role players, once again creating a consistent pre-approved
framework for all parties involved.
Martin Siebrits
Executive Head of Mobile Money
Vodacom Congo
9. In May 2013 the government partnered with Airtel to pay the salaries to about 100,000 civil servants via Airtel Money. In the fall the project was scaled down due to some operational challenges.
12
