Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
The report also indicates that money remittances in Africa has helped the poor access money from the Diaspora and build the region’s economy and private lives/FILE

Kenya

M-Pesa, Dahabshiil turning around lives of poor in Africa

The report also indicates that money remittances in Africa has helped the poor access money from the Diaspora and build the region’s economy and private lives/FILE

The report also indicates that money remittances in Africa has helped the poor access money from the Diaspora and build the region’s economy and private lives/FILE

NAIROBI, Kenya, Apr 29 – Mobile money transfer system M-Pesa, Solar supply company M-Kopa and money remittance company Dahabshiil have been described as the most innovative financial ideas turning around the lives of the poor in Africa.

According to a special report in the latest issue of the Economist, while the mobile transfer system M-Pesa continues to grow, the pay as you go solar supply company- M-Kopa has had great impact on families in the rural Africa and small businesses in the villages.

M-Kopa, which means “to borrow” in Swahili, has made its name selling solar panels which offer light to the remotest parts of the country. One pays via the mobile money transfer system.

“East Africa is one of the most developed markets. Some 58 percent of Kenyans use mobile-money services, overwhelmingly M-Pesa. And as M-Kopa shows, such mobile services offer more than just a means to transfer money.

Mobile phones can provide an address book, a credit rating and a distribution network all in one. Together, those things can allow even very poor people to acquire assets with their earnings, setting them on the path to becoming middle-class,” the report by the Economist states.

M-Kopa also sells fuel-efficient cooking pots and smartphones, and would like to supply a small refrigerator, too.

It has sold around 325,000 solar panels so far, and 50,000 of their buyers have already paid off their loan and then bought a cooking pot, a television or a smartphone.

The report also indicates that money remittances in Africa has helped the poor access money from the Diaspora and build the region’s economy and private lives.

“The only place where mobile money is often preferred to cash for small transactions is Somaliland, the autonomous and peaceful northern part of Somalia. The main system there is on a network run by Dahabshiil, a firm that started as a remittances business and bank rather than as a telecoms provider. In contrast to almost everywhere else in Africa, making payments in Somaliland is free.”

Advertisement. Scroll to continue reading.
Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...