
<p>By Hanisa Weru, Strategic Alliances Leader in Africa for Sun King</p>



<p>As commodity prices soar and leaders around the world worry about energy shortages and prices of gasoline at the pump, millions of people in Africa still lack access to reliable electricity.&nbsp; One-half of the people on the continent cannot turn on a fan when temperatures go up, keep food cool, or simply turn the lights on. Off-grid, decentralized renewable energy solutions serve as a viable alternative for millions of people, especially in countries with an underserved population and difficult terrain. Off-grid solar companies utilize innovative technology systems from pay-as-you-go (PAYG) technology to unconventional and revolutionary mobile applications to enable clean energy access to consumers. One advantage of these financing and payment models has been the increase in affordability of off-grid systems.</p>



<p>For example, according to the World Bank, West Africa has one of the lowest rates of electricity access in the world; about 42% of the total population, and 8% of rural residents, have access to electricity. There is a disparity between grid access and access to electricity. This means there has been some involvement of decentralized renewable energy systems to close that gap. The idea of a renewable decentralized system is now commonly and more consciously embraced in Africa.</p>



<h2 class="wp-block-heading" id="h-the-pay-as-you-go-method-for-energy-access">The pay-as-you-go method for energy access</h2>



<p>Decentralized renewable energy systems include mini-grids, microgrids, solar home systems, and many more. The growing adoption has allowed product manufacturers to develop affordable, sustainable clean energy products that meet rural consumers’ needs. Sun King has a range of products that are embedded with the pay-as-you-go (PAYG) technology allowing customers to make daily micropayments for their solar home energy system over a period of time, making them affordable. A huge upfront sum is not needed for continued energy, you can flexibly pay for it over time.</p>



<h2 class="wp-block-heading">The confluence of mobile usage and energy access</h2>



<p>There have been multiple touchpoints between the two industries, telecommunications and pay-as-you-go solar, that prove their relationship to be immensely symbiotic in nature.</p>



<p>Firstly, pay-as-you-go systems allow customers to charge their mobile phone, keeping them connected and allow them to maintain constant communication to the world, to their families that leads to increased use of mobile services, data and airtime. This also allows for users to do business from far off distances, sometimes, even across borders.</p>



<p>Secondly, pay-as-you-go (PAYG) solar has been enabled by mobile money and mobile connectivity that allows customers to pay by installments, and companies to remotely control and monitor the solar home systems (SHS). The PAYG solar industry has helped to drive the adoption and use of mobile money, by giving customers a regular and essential use case, ensuring they have a convenient and safe power source to charge their phones, fostering financial inclusion.<strong> </strong>In much of the world, people don’t live near banks or have bank accounts. Research suggests that the fast spread of these systems that give access to mobile money leads to significant economic growth in the areas affected. In parts of Africa, mobile money systems are ubiquitous. In Uganda, 43 percent of people have a mobile money account. 84% of internet users in Kenya and 60% in Nigeria regularly made payments with mobile phones in 2021. Transaction frequency with mobile money increases for transactions for products and services beyond energy.</p>



<p>Sun King collaborates with telecommunication operators through varied partnership models. The type of transactions: cash-in, cash-out, merchant payment, person-to-person payment, airtime purchase, all grew for the PAYG group. Increase in person-to-person transactions reinforces the point that PAYG adoption drives mobile money usage across transaction types, and that more value is circulating in the digital ecosystem.</p>



<p>Thirdly, there is an&nbsp; increasing trend of telecoms starting to look beyond their revenue earning models and find innovative partnerships that can lead to sustainable increases in ARPU and customer retention. For example, increasing mobile internet usage is a high priority for mobile operators seeking to stimulate phone activities among their clients. Energy providers can, and want to, leverage their customer relationship to continue to offer services after a customer has completed the payment on their first solar home system.</p>



<p>Expanding into rural consumer segments with value-added services such as pay-as-you-go solar products for daily energy and infotainment is a really interesting spot where telecoms can deliver long-term value to their users. PAYG smartphones, associated with increased mobile usage, are a good example of this trend and are developing fast in related markets.</p>



<h2 class="wp-block-heading">Creating an ecosystem through collaboration for energy access</h2>



<p>The key to unlocking energy access requires a collaborative effort of industry and sector stakeholders working to serve the underserved population. For example, financing is very important for PAYG solar deployment. The industry needs financiers to get more involved and partner with manufacturers, distributors to provide energy to rural communities. They (manufacturers and distributors) need access to financing for onward lending to customers, allowing them to pay for their energy in installments in a flexible, affordable way.&nbsp; With the pay-as-you-go option, manufacturers and/or distributors provide energy to the consumer with an option to pay overtime. So, who bears the huge capital cost or funds the working capital required for financing and distribution of the solar home systems, mini-grids, or macro grids?</p>



<p>Reiterated at the Mobile World Congress at Kigali, Rwanda, this year, the PAYG opportunity is enormous given the extent of pent up demand for affordable pathways to access essential goods and services. PAYG provider and mobile operator partnerships are central to meeting this need as each side brings unique value. While PAYG models have mobile services at their core, PAYG providers and mobile operators can develop a symbiotic relationship to reach the underserved communities with the services they need. Deepening these partnerships will ultimately reach end users with products and services they have traditionally been excluded from accessing.</p>


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Increasing energy access: The rise of pay-as-you-go solar and innovative payment methods

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<p>A new mobile technology is enabling faster responses to health emergencies and protecting and empowering front-line workers by transforming the way they are compensated a simple, but somewhat unexpected solution. This tech was piloted by the polio eradication program in several African countries and is now being used to support the COVID-19 response, CNBC Africa spoke with the Finance Officer of the World Health Organization, Ahmed Hamani for more.</p>


How mobile money platforms can help reduce inefficiencies in Africa’s healthcare sector

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<p>MTN South Africa has entered into a $2 million partnership with the World Bank’s International Finance Corporation to expand its mobile money business. Felix Kamenga, Chief Officer for Mobile Financial Services at MTN SA joins CNBC Africa for more.</p>


MTN SA partners with IFC to expand its mobile money business

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<p>According a report by GSMA, the value of mobile money transactions in Africa increased by 23 per cent to $490 billion, while the volume of transactions grew by 15 per cent to $27.4 billion in 2020. Akinwale Goodluck, Head of sub-Saharan Africa at GSMA joins CNBC Africa for more.</p>


Africa sees robust growth in mobile money transactions despite COVID-19

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<p>Airtel Africa says that the Rise Fund, a global impact investing platform of TPG, will invest $200 million in Airtel Mobile Commerce BV, which is a wholly owned subsidiary of Airtel Africa. The telecoms service provider says it is looking to explore the potential listing of its mobile money business within 4 years. Raghunath Mandava, CEO of Airtel Africa joins CNBC Africa for more.</p>


The Rise Fund to invest $200mn in Airtel Africa’s mobile money business

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<p>According to the World Bank, remittance flows to low and middle-income countries are projected to fall by 14 per cent to $470 billion in 2021.Iain Allison, Senior Director, Business Development (International), Xoom spoke with CNBC Africa on the sector&#8217;s performance in 2020 and what to look forward to in 2021.</p>


2021: World Bank forecasts 14% decline in remittance flows to low & middle-income countries

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<p>According to a report by GSMA, in 2019, 50 million sub-Saharan Africans created a mobile-money account via a mobile phone, representing a 12 per cent increase compared to 2018. Moreover, data from the Central Bank of Kenya indicates more than 6.5 million Kenyans registered new mobile money accounts in the 11 months through November 2020 bring the total number of mobile money accounts to 65.766 million.  Economic Analyst, Reginald Kadzutu joins CNBC Africa for more.</p>


How East Africa can build financial resilience through mobile money

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<p>In Uganda, the country shared plans to re-open schools. Furthermore, $3.2 million is estimated to have been stolen in the latest hack incident that compromised Uganda’s mobile money network. Analyst, Charles Bwogi joins CNBC Africa for more.</p>


COVID-19 lock-down: Uganda prepares to reopen schools

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<p>As of this week, all bank to mobile wallet services in Uganda have been temporarily suspended.</p>


Bank to mobile wallet services suspended in Uganda over hacking

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<p>The 2020 Mastercard Gig Economy Industry Outlook report indicates that there is rapid development of the global Gig Economy, projecting double-digit annual growth for the industry over the next five years. CNBC Africa spoke with Ngozi Megwa, Senior vice President, Digital Partnerships, Middle East and Africa at Mastercard on the purpose of the study and the impact this fast-growing industry has on the East African economy.</p>


How the digital use is powering up the gig economy in East Africa

How digital technology is powering up East Africa’s growing gig economy

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<p>Mastercard has launched Fintech Express designed to facilitate emerging fintechs’ launch and expansion in the Middle East and Africa. With the power of partnerships and Mastercard’s expertise, technology, and global network, start-ups will be able to focus on innovation that drives the digital economy. On more on this we had a conversation with Gaurang Shah, Senior Vice President, Digital payments and labs for Middle East and Africa at Mastercard.</p>


Mastercard empowers Middle East & Africa fintechs to launch and expand rapidly

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<p>Tanzania&#8217;s digital landscape in recent years has grown creating a number of economic opportunities. Mastercard and Selcom recently announced the launch an enhanced mobile payment application that enables people to centralize all their payment cards or supported mobile banking profiles on one digital platform. Sameer Hirji, Executive Director, Selcom Paytech Limited joins CNBC Africa for more.</p>


Accelerating the adoption of digital payments in Tanzania

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<p>The current pandemic has radically transformed the world of business, with many having to adapt fast and use unconventional methods to keep their businesses working. Dare Okoudjou, CEO and Founder of MFS Africa joined CNBC Africa on how to solve the money transfer challenge that is preventing African businesses from growing as much as they should.</p>


MSF Africa CEO on how to solve money transfer challenges in Africa amid COVID-19

MFS Africa CEO on how to solve money transfer challenges in Africa amid COVID-19

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<p>Mitwa Kaemba Ng’ambi, the CEO of MTN Rwanda joined CNBC Africa to unpack the teleco’s revenue collection for the first half of 2020.</p>


MTN Rwanda CEO on COVID-19 & its impact on the company’s half-year results


<p>The Zimbabwean economy seems to go from bad to worse, as authorities leave behind a trail of policy missteps.</p>



<p>The government announced late on Friday that monetary transactions on mobile-based money platforms are suspended, potentially impacting up to 80% to 90% of all transactions.</p>



<p>This unprecedented move leaves Zimbabweans stranded with almost no mode of transacting. Residents with money stored in any of these mobile providers need to visit a local bank to liquidate their accounts.</p>



<p>The most prominent players in the industry include EcoCash, One Money, MyCash, and Telecash. EcoCash is the biggest non-banking financial institution and holds no less than ZWL$8bn on its mobile money platform.</p>



<p>In a statement following the announcement, the company urged its 10 million users, most of whom do not have bank accounts, to remain calm.</p>



<p>The government is accusing mobile money providers of economic sabotage and malpractice, which have led to the creation of a parallel central bank.</p>



<p>The government’s animosity towards non-banking financial institutions is nothing new.</p>



<p>Reserve Bank of Zimbabwe (RBZ) Governor John Mangudya voiced his support for the government and issued a monetary policy statement over the weekend specifying revised conditions to the ban.</p>



<p>“The unprecedented measures have been necessitated by the need to protect consumers on mobile money platforms which are being abused by unscrupulous and unpartisan individuals and entities to create instability and inefficiencies in the economy,” the statement read.</p>



<p>Meanwhile, trade on the Zimbabwe Stock Exchange (ZSE) is also suspended and investors are frantic and deeply concerned over what has happened to their money.</p>



<p>This is a blow for Zimbabweans who usually turn to the local bourse to safeguard the value of their money against rising inflation and currency depreciation.</p>



<p>Yet not long ago, officials were still upbeat about the Victoria Falls Stock Exchange (VFEX) and the foreign investment it would unlock.</p>



<p>On Tuesday, June 30, the RBZ proceeded to hold the second weekly foreign exchange (FX) auction.</p>



<p>Last week saw Zimbabwe’s currency peg to the US dollar end after the weighted-average rate was calculated at ZWL$57.4/$, thereby setting the new exchange rate. At the latest auction, this rate was calculated at ZWL$63.7/$.</p>



<p>The Zimbabwean dollar has been in freefall since the start of the year as a lack of confidence erodes its value. We believe this trend is likely to persist while foreign exchange reserves remain at distressingly low levels.</p>



<p>The latest move is simply another desperate attempt to enforce the use of a currency with no credibility.</p>



<p>We have stated before that the economy is in a state of dysfunction, characterised by irrational policy measures.</p>



<p>The banning of mobile money services further exacerbates confusion and turmoil in Zimbabwe’s monetary environment.</p>



<p>Jee-A Van Der Linde, Economist</p>


Zimbabwe tightens coronavirus lockdown in capital Harare as cases hit 203

Hello?  – How Zimbabwe’s got the wrong number when it comes to mobile money

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<p>Will banking stay normal? Or is the sector finally going to be forced to shift towards a new frontier? These are some of the questions that the CEO of BPR Atlas Mara Bank, Maurice Toroitich gave insight to with CNBC Africa.</p>


How will the banking industry exist in a post COVID-19 world?

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<p>Prices and demand for oil have been seeing a dramatic decline globally, so what does this mean for a country whose economy depends on the commodity? And how does that factor into South Sudan’s budget allocations pertaining to the nation’s fight against COVID-19. Africa Political and Economic Affairs Analyst, Akol Dok joins CNBC Africa for more.</p>


mobile money

Increasing energy access: The rise of pay-as-you-go solar and innovative payment methods

How mobile money platforms can help reduce inefficiencies in Africa’s healthcare sector

MTN SA partners with IFC to expand its mobile money business

Africa sees robust growth in mobile money transactions despite COVID-19

The Rise Fund to invest $200mn in Airtel Africa’s mobile money business

2021: World Bank forecasts 14% decline in remittance flows to low & middle-income countries

How East Africa can build financial resilience through mobile money

COVID-19 lock-down: Uganda prepares to reopen schools

Bank to mobile wallet services suspended in Uganda over hacking

How digital technology is powering up East Africa’s growing gig economy

Mastercard empowers Middle East & Africa fintechs to launch and expand rapidly

Accelerating the adoption of digital payments in Tanzania

MFS Africa CEO on how to solve money transfer challenges in Africa amid COVID-19

MTN Rwanda CEO on COVID-19 & its impact on the company’s half-year results

Hello? – How Zimbabwe’s got the wrong number when it comes to mobile money

How will the banking industry exist in a post COVID-19 world?

How South Sudan is responding to the economic shock of COVID-19

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Advertise With Us

mobile money

Increasing energy access: The rise of pay-as-you-go solar and innovative payment methods

How mobile money platforms can help reduce inefficiencies in Africa’s healthcare sector

MTN SA partners with IFC to expand its mobile money business

Africa sees robust growth in mobile money transactions despite COVID-19

The Rise Fund to invest $200mn in Airtel Africa’s mobile money business

2021: World Bank forecasts 14% decline in remittance flows to low & middle-income countries

How East Africa can build financial resilience through mobile money

COVID-19 lock-down: Uganda prepares to reopen schools

Bank to mobile wallet services suspended in Uganda over hacking

How digital technology is powering up East Africa’s growing gig economy

Mastercard empowers Middle East & Africa fintechs to launch and expand rapidly

Accelerating the adoption of digital payments in Tanzania

MFS Africa CEO on how to solve money transfer challenges in Africa amid COVID-19

MTN Rwanda CEO on COVID-19 & its impact on the company’s half-year results

Hello? – How Zimbabwe’s got the wrong number when it comes to mobile money

How will the banking industry exist in a post COVID-19 world?

How South Sudan is responding to the economic shock of COVID-19

News Tips

Advertise With Us

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