Page 5 - GSMA_Congo_Case_Study_ARTWORK
P. 5
ENABLING MOBILE MONEY POLICIES IN THE DEMOCRATIC REPUBLIC OF CONGO
1
Impact through
leadership, pragmatism
and an inclusive
participatory process
A cross the DRC, the banking sector has very low penetration levels (less than 4%), but the telecommunications infrastructure
2
has developed at a much faster pace. Many factors have made it challenging to develop a solid and functioning financial
sector, not least the exceptionally low population density (29.3/km2) in Sub-Saharan Africa’s largest country (by area), and
3
widespread public distrust of banks after many people lost their deposited savings during the national crises of the 1980s and 1990s.
In this challenging environment, developing a financial sector through traditional banking infrastructure has had little, impact. Mobile
money, on the other hand, is seen as a promising way to expand access to financial services: the country has an estimated population
of 66.6 million and 16.3 million subscribers. Mobile penetration is still relatively low (33%), but increasing, and the market is very
competitive, with four MNOs out of seven – Bharti Airtel (formerly Zain/Celtel), France Telecom/Orange, Millicom (Tigo), and Vodacom
Congo – counting more than 3 million subscribers (See figure 2).
FIGURE 2
MOBILE MARKET SHARE (16,2M UNIQUE MOBILE SUBSCRIBERS IN Q1 2014)
13.93% 11.44%
AFRICELL (LINTEL)
AIRTEL (BHARTI AIRTEL)
SUPERCELL
28.47%
ORANGE
31.37%
TATEM TELECOM
VODACOM
7.82% 6.95% TIGO (MILLICOM)
0.02%
2. Global Findex (Global Financial Inclusion Database), http://databank.worldbank.org/Data/Views/VariableSelection/SelectVariables.aspx?source=1228#c_c
3. This is one of the main findings of the consumer research undertaken in 2013 by the GSMA. See GSMA and InterMedia (2013), “Mobile Money in the Democratic Republic of Congo: Market insights on consumer needs and
opportunities in payments and financial services.” Available at: http://www.gsma.com/mobilefordevelopment/wp-content/uploads/2013/07/Mobile-Money-in-the-DRC_July-2013.pdf
5
1
Impact through
leadership, pragmatism
and an inclusive
participatory process
A cross the DRC, the banking sector has very low penetration levels (less than 4%), but the telecommunications infrastructure
2
has developed at a much faster pace. Many factors have made it challenging to develop a solid and functioning financial
sector, not least the exceptionally low population density (29.3/km2) in Sub-Saharan Africa’s largest country (by area), and
3
widespread public distrust of banks after many people lost their deposited savings during the national crises of the 1980s and 1990s.
In this challenging environment, developing a financial sector through traditional banking infrastructure has had little, impact. Mobile
money, on the other hand, is seen as a promising way to expand access to financial services: the country has an estimated population
of 66.6 million and 16.3 million subscribers. Mobile penetration is still relatively low (33%), but increasing, and the market is very
competitive, with four MNOs out of seven – Bharti Airtel (formerly Zain/Celtel), France Telecom/Orange, Millicom (Tigo), and Vodacom
Congo – counting more than 3 million subscribers (See figure 2).
FIGURE 2
MOBILE MARKET SHARE (16,2M UNIQUE MOBILE SUBSCRIBERS IN Q1 2014)
13.93% 11.44%
AFRICELL (LINTEL)
AIRTEL (BHARTI AIRTEL)
SUPERCELL
28.47%
ORANGE
31.37%
TATEM TELECOM
VODACOM
7.82% 6.95% TIGO (MILLICOM)
0.02%
2. Global Findex (Global Financial Inclusion Database), http://databank.worldbank.org/Data/Views/VariableSelection/SelectVariables.aspx?source=1228#c_c
3. This is one of the main findings of the consumer research undertaken in 2013 by the GSMA. See GSMA and InterMedia (2013), “Mobile Money in the Democratic Republic of Congo: Market insights on consumer needs and
opportunities in payments and financial services.” Available at: http://www.gsma.com/mobilefordevelopment/wp-content/uploads/2013/07/Mobile-Money-in-the-DRC_July-2013.pdf
5
