I’m sure you know M-Pesa, which started in Kenya and is now one of the biggest FinTech companies in East Africa. Well, news is they have decided to expand into other countries such as Nigeria, and Angola. It is good that they have decided to launch into the most populous market in Africa. They sure would make a head way in it.
Before now, there was a sale of 35% stake in the Nairobi-based company to Vodacom by parent Vodafone has enabled Safaricom to look to new markets. This was according to the CEO, Bob Collymore who made it known in an interview at his office in the Kenyan capital.
You might want to know why that is so. According to reports, Vodafone has an agreement with the South African government which allows them to only expand in Africa through the Vodacom company, who owns the majority and is Johannesburg-based.
Quoting Bob Collymore, he said that “Before the end of the year, I would expect to have something to roll out,” He also made known that Safaricom may seek to agree to platform-sharing deals with competitors such as MTN to expand M-Pesa rather than set up in new countries.
“If you are going to start to regulate how much we are going to charge, we are going to have a problem”.
M-Pesa — pesa means money in Swahili — had more than 25m customers in 11 countries such as Tanzania and Ghana as at the end of March. They were mainly dominant in countries that do not have developed banking systems. Well, we do have a somewhat developed banking system in Nigeria but our population would make up for that for M-Pesa.
In Kenya, M-Pesa handled 79% of mobile banking transactions, which could suggest how undeveloped their banking system is, and altogether, they processed 851bn shillings (R105bn) in the third quarter of last year. Their shares witnessed a19% jump this year, and it valued the company at 911bn shillings.