By Akanimo Sampson
A member of the World Bank Group, International Finance Corporation (IFC) has joined Orange Money to advance digital financial services in Madagascar.
Orange Money Madagascar is part of French telecommunications group, Orange.
IFC on Thursday signed an agreement to help the company accelerate the expansion of its mobile money services in Madagascar and increase financial inclusion in the country, particularly among women and those living in rural areas.
It is working with Orange Money Madagascar, a leading mobile money player in the African country to help the company better analyse the behaviour of its users and agents, improve the efficiency of its agent network and reach new customers.
Specific activities and strategies will also be designed to help the company attract more women agents and women users to the service.
This partnership is the first large-scale advisory engagement between IFC and Orange group focused on mobile money, and is part of the World Bank Group’s wider efforts to improve financial inclusion and economic growth in Madagascar.
CEO Orange Money Madagascar, Mathieu Berthelot, says “Orange Money Madagascar has been committed to make Madagascar one of the most advanced mobile money ecosystems globally by building a strong agent network and by supporting innovation and interoperability among mobile money providers.
‘’Much remains to be done to scale these secure and transparent services throughout the country. This partnership with IFC will help bring these essential services to more people, directly and through partnerships with administrations and the private sector.’’
Madagascar has one of the world’s lowest levels of financial inclusion, with only 18 percent of the adult population having an account as of 2017.
But since its launch in 2010, through a combination of mobile money operators’ own investments and the country’s progressive regulation, mobile money has grown rapidly in Madagascar and today there are more mobile money accounts than financial institution accounts in the country.
The rapid expansion of mobile money and digital financial services is a true opportunity to increase financial inclusion in Madagascar, especially for the underserved populations in rural areas.
IFC Country Manager for Madagascar, Marcelle Ayo, says ‘’IFC is committed to support the growth of these innovative channels, which are even more important today due to the COVID-19 crisis.”
Orange Money Madagascar’s mobile money services allow its more than 2 million customers in the country to easily withdraw or transfer money, make payments and access financial services at a convenient and accessible location, by leveraging their network of over 10,000 agents spread out across the country.
The company recently acquired an e-money license and aims to broaden its network and products, comforting its leadership in the distribution of digital nano-loans and savings.
The project will support increased competitiveness and competition in Madagascar’s mobile money market, which is key to improving the quality of services to consumers, and aligns with Madagascar’s National Financial Inclusion Strategy (2018-22), which envisions technology as an opportunity to increase access and use of financial services in Madagascar.
This project is also supported by the Harnessing Innovation for Financial Inclusion (HiFi) program, sponsored by United Kingdom’s Foreign, Commonwealth & Development Office (FCDO).
The partnership will also indirectly support Orange Money’s investment in innovation, including by strengthening existing partnerships with microfinance institutions, such as Baobab Banque and Premiere Agence de Microfinance (PAMF), both IFC clients, which can help drive more digital savings and lending.
IFC’s strategic approach to Madagascar is guided by its fiscal year 2017-2021 Country Partnership Framework for Madagascar, which seeks to address fragility and other development challenges that hamper sustainable growth and inclusiveness.
IFC is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using its capital, expertise, and influence to create markets and opportunities in developing countries.
In fiscal year 2020, we invested $22 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity.
