Mama spots gap in money transfers


Harare - A new money remittance company, Mama Money, has been launched to help immigrants in South Africa speedily send money back home using cellphones and the internet.

The company has been established under a partnership arrangement with Old Mutual Zimbabwe’s banking arm, CABS. The Cape Town-based Mama Money will initially target Zimbabwe and subsequently expand to cover other countries in the region.

The cross-border remittance industry is thriving, with experts urging regulators and central banks on the continent to allow mobile money companies to process transactions.

The Posts and Telecommunications Regulatory Authority of Zimbabwe said in a report last week that the total number of transactions carried out using mobile money platforms in Zimbabwe increased by 35.8 percent to $296.8 million (R3.4 billion) during the quarter to the end of September.

The Reserve Bank of Zimbabwe said in a separate report that the total value of mobile- and internet-based transactions in the southern African country had, however, declined from $479.70m last October to $279.52m in November.

Mama Money says there are about 1.9 million Zimbabweans staying in South Africa and that they are facing problems in sending money back home, hence it has decided to grab this opportunity.

Commissions

While other money transfer companies charge commissions of up to 15 percent for money transfers across borders, Mama Money said it would charge a flat commission of 5 percent for remittances from South Africa to Zimbabwe and promised there would be no hidden costs.

Remittance costs using informal channels such as bus and taxi drivers, haulage companies and travelling relatives are also significantly higher.

“By simply registering through a Mama Money agent, customers are able to send money online using their cellphone to relatives’ mobile wallet accounts. With 1.9 million Zimbabweans living in South Africa, the first phase for Mama Money is to focus on South Africa – Zimbabwe remittance corridor,” said Mathieu Coquillon, the co-founder of Mama Money.

CABS already runs the Textacash mobile money service in Zimbabwe.

The service has over 300 000 subscribers and competes against Telecash, run by Telecel Zimbabwe and EcoCash, operated by Econet Wireless among other mobile money platforms in Zimbabwe.

Coquillon said international remittances form the sole lifeline for a migrant’s family. “International remittance is the single biggest financial flow into Africa, exceeding foreign investment and official development assistance (international aid),” he added.

South Africa offers better employment opportunities for Zimbabwean immigrants seeking greener pastures and running away from harsh economic conditions.

“Governments in sub-Saharan Africa have come to realise that mobile money is key to improving the region’s financial inclusion,” said Lehlohonolo Mokenela, an information and communication technologies analyst at Frost & Sullivan.

SOURCE:IOL.CO.ZA

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