Case Studies & White Papers

A full function mobile money platform in under six months. Find out how.
RuralStar - A New Horizon for Rural Mobile Users. Learn more.

MWC 2018 News Channel

mwc18 banner

Latest Comments

  • Developing Telecoms More
    In this instance, the figures are based on the latest... Tuesday, 12 June 2018
  • Steve Costello More
    Those market share figures are interesting. Where did they... Monday, 11 June 2018
  • Developing Telecoms More
    All market share information is taken from GSMA Intelligence... Friday, 08 June 2018
  • Steve Costello More
    The market share figures are interesting. Where did they come from? Thursday, 07 June 2018
  • April More
    When will be launch? Sunday, 01 April 2018

Safaricom mulls M-Pesa launch in Nigeria and Angola amid Kenya scrutiny

Safaricom mulls M-Pesa launch in Nigeria and Angola amid Kenya scrutiny

Safaricom is considering an extension of its successful M-Pesa mobile banking service into more African markets, including Nigeria and Angola.

CEO Bob Collymore stated: “Before the end of the year, I would expect to have something to roll out”, and noted that the operator could pursue platform-sharing deals with rival firms such as MTN Group to push M-Pesa into new markets without having to establish its own operations.

Safaricom has been freed up to move into new African markets following Vodafone’s sale of a 35% stake in the Nairobi-based operator to its majority-owned South African unit Vodacom for $2.6B. A prior agreement between Vodafone and the South African government specifies that the group may only expand in Africa via Vodacom.

M-Pesa has spread into 11 markets including Tanzania and Ghana, and across its entire footprint boasts over 25 million subscribers. In its home market of Kenya, M-Pesa is used for around 79% of mobile banking transactions, with $8.2 billion processed in Q3 2016. However, the service’s dominance in Kenya has come under scrutiny from the country’s regulator, with some lawmakers arguing that M-Pesa should be spun off into a separate company.

A report into the issue is expected to conclude that while Safaricom is not abusing its dominance, it should have to share infrastructure and be more transparent about pricing and offers. However, since the three-year term served by the Communications Authority of Kenya Chairman Ben Gituku expired last month, the report’s release has been delayed as no replacement is forthcoming.

“We are not objecting to share, because sharing means you get additional revenue,” said Collymore. “What we are losing sleep about is compelling us to share at a regulated price. If you are going to start to regulate how much we are going to charge, we are going to have a problem. We’re going to have a fight about this one, because why would my investors invest?”

Comments powered by CComment