MTN's MoKash mobile loans hit $310.000 in first-half of 2017

MTN's loan and saving service, MoKash, which allows users to save on their mobile money wallet as well as acquire short-term micro-loans, has disbursed micro-loans worth 260 million Rwandan francs ($310,000) and RwF 135 million saved by subscribers in the first six months of the year. This significant achievement highlights the growing popularity and success of the mobile financial service in Rwanda. Norman Munyampundu, General Manager of MTN Business, recently joined CNBC Africa to discuss the impressive progress of MoKash and the future outlook for the service. Munyampundu revealed that since the launch of the service in February, the total cumulative disbursements in loans have reached 800 million Rwandan francs, showcasing the high demand for micro-loans in the region. Additionally, the outstanding savings from subscribers currently amount to 130 million Rwandan francs, indicating a strong trend of repayments and renewals among users. Munyampundu emphasized that MoKash's innovative product offering, which features low interest rates and convenient access to financial services, has attracted a large number of customers who value the flexibility and affordability of the service. The MoKash platform not only provides micro-loans but also encourages savings and financial discipline among users, fostering a culture of responsible financial management. In response to queries about the service fees and interest rates, Munyampundu highlighted MTN's efforts to introduce more competition into the market by collaborating with additional banks to offer lower fees and higher interest rates on savings. By expanding the pool of financial partners, MoKash aims to enhance customer choice and affordability while driving financial inclusion in Rwanda. The partnership with various regional banks such as BK, INDM, KCB, and BPR demonstrates MTN's commitment to serving diverse segments of the population with tailored financial solutions. Looking ahead, Munyampundu shared the ambitious goal of reaching 1 million subscribers by the end of the year, signaling the company's confidence in the continued growth and adoption of MoKash in the Rwandan market. With a focus on enhancing awareness and promoting the benefits of the service, MTN aims to attract more users and expand its reach in the coming months. From a broader perspective, Munyampundu discussed the evolution of mobile financial services as a key driver of financial inclusion and access to banking services in Rwanda. He emphasized the role of mobile money platforms in revolutionizing the way people manage their finances and conduct transactions, highlighting the convenience and efficiency offered by mobile banking solutions. As MTN continues to innovate and integrate new features such as tap and pay functionalities with banking partners, the synergy between traditional banking services and mobile financial solutions is set to deepen, providing customers with a seamless and comprehensive range of financial services. Ultimately, MoKash's success story underscores the transformative impact of mobile technology on financial inclusion and economic empowerment in Rwanda, setting a positive example for other markets in the region to emulate.