Page 4 - GSMA_Congo_Case_Study_ARTWORK
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ENABLING MOBILE MONEY POLICIES IN THE DEMOCRATIC REPUBLIC OF CONGO
Introduction
I n December 2011, the Democratic Republic of Congo’s (DRC) central bank released a new regulatory framework on electronic
money (e-money): Directive #24. This was a landmark development in the Banque Centrale du Congo’s (BCC) financial inclusion
strategy. Recognising mobile money’s unrivalled potential to reach the unbanked, BCC has designed an enabling regulatory
framework that allows non-bank e-money issuers to oer transformational financial services. A few months after the release of
the new framework, four mobile network operators (MNOs) were granted a licence and three launched operations, creating a
competitive mobile money market that is bringing eciency in a country where neither banks nor payment service providers have
yet managed to reach scale. The rapid market uptake of e-money is the direct result of an inclusive engagement process through
which the regulator and mobile providers created Directive #24 on electronic money.
This case provides important lessons for regulators:
• Leadership and pragmatism are very important to make the policymaking process efective and achieve the pursued outcomes
in a short timeframe.
• Engaging other government agencies and all relevant private sector players in the design phase of a regulation establishes
a process of mutual learning that can have a very positive impact on policy outcomes.
• When a new regulation is developed, the regulator and participating stakeholders should project the impact of the regulation
on market uptake and customer adoption of mobile money services.
Some of the policy and regulatory solutions to enable mobile money are o-the-shelf and have already been tested successfully
in many countries where MNOs are providing sound and secure mobile money services.
• Regulators can greatly beneit from an iterative process based on what private sector providers learn on the ground
post-launch.
FIGURE 1
DATA DASHBOARD OF THE MOBILE INDUSTRY 1
POPULATION CONNECTIONS UNIQUE SUBSCRIBERS SIM PENETRATION
Q4 2012 Q4 2012 Q1 2014 Q4 2012
66.6M 22.0M 16.2M 33%
5.56%
% PREPAID %3G
Q4 2012 Q4 2012
99% 5%
1. Sources: GSMA Intelligence, United Nations (World Population Prospects, 2010). World Bank (World Development Indicators, 2012).
4
-0.44% 18.23%
Introduction
I n December 2011, the Democratic Republic of Congo’s (DRC) central bank released a new regulatory framework on electronic
money (e-money): Directive #24. This was a landmark development in the Banque Centrale du Congo’s (BCC) financial inclusion
strategy. Recognising mobile money’s unrivalled potential to reach the unbanked, BCC has designed an enabling regulatory
framework that allows non-bank e-money issuers to oer transformational financial services. A few months after the release of
the new framework, four mobile network operators (MNOs) were granted a licence and three launched operations, creating a
competitive mobile money market that is bringing eciency in a country where neither banks nor payment service providers have
yet managed to reach scale. The rapid market uptake of e-money is the direct result of an inclusive engagement process through
which the regulator and mobile providers created Directive #24 on electronic money.
This case provides important lessons for regulators:
• Leadership and pragmatism are very important to make the policymaking process efective and achieve the pursued outcomes
in a short timeframe.
• Engaging other government agencies and all relevant private sector players in the design phase of a regulation establishes
a process of mutual learning that can have a very positive impact on policy outcomes.
• When a new regulation is developed, the regulator and participating stakeholders should project the impact of the regulation
on market uptake and customer adoption of mobile money services.
Some of the policy and regulatory solutions to enable mobile money are o-the-shelf and have already been tested successfully
in many countries where MNOs are providing sound and secure mobile money services.
• Regulators can greatly beneit from an iterative process based on what private sector providers learn on the ground
post-launch.
FIGURE 1
DATA DASHBOARD OF THE MOBILE INDUSTRY 1
POPULATION CONNECTIONS UNIQUE SUBSCRIBERS SIM PENETRATION
Q4 2012 Q4 2012 Q1 2014 Q4 2012
66.6M 22.0M 16.2M 33%
5.56%
% PREPAID %3G
Q4 2012 Q4 2012
99% 5%
1. Sources: GSMA Intelligence, United Nations (World Population Prospects, 2010). World Bank (World Development Indicators, 2012).
4
-0.44% 18.23%
