Zanzibar — MAINTAINING trust, security and low cost in mobile financial services (MFS) could be some of the challenges in developing the services in Africa, central bank heads in Africa said at their meeting here.
Addressing a joint press conference, the Governor of Central Bank of Kenya, Prof Njuguna Ndungu and his Tanzanian counterpart, Prof Benno Ndulu said mobile financial services were favourable to many subscribers.
“We are talking about scaling up financial services through mobile technology, but we need to maintain safety of the money and low charges are challenges,” said Prof Ndulu. The meeting was attended by governors, mobile phone companies managers and other financial experts from 39 African countries.
MFS are now widely used in payments and expanding to mobile microfinance. Prof Ndulu said African countries should now consider expanding microfinance and foster development through mobile financial services. “Services through M-pesa, tigo pesa, Ezy-Pesa, Z-pesa and airtel money in Tanzania is an opportunity for change,” Prof Ndulu said.
According to the KCB governor, the objective for scaling up MFS is to tap bright minds in the services and spread it to the rest of the world. “In rural areas where a mobile phone is available, financial services can be delivered,” he said.
Dr Alfred Hannig, the Executive Director of Alliance for Financial Inclusion (AFI), said the African financial inclusion policy was important in all developing countries because “the mobile financial services market is growing fast, mostly consisting of money transfers.”
Source: All Africa.Com – 5 March 2012