Rwanda’s leading telecommunication provider, MTN Rwanda, in partnership with Commercial Bank of Africa (CBA) today launched a ground breaking savings and loans product dubbed ‘MoKash’, which will enable registered MTN Mobile Money customers to save and earn interest and to take loans on a short term basis using their phones.
MoKash allows MTN Mobile Money customers to conveniently borrow as much as 300,000Rwf as well as save as little as 100Rwf, while earning interest of up to 7 percent. Additionally, the customer can setup an auto-savings arrangement to periodically make deposits to their MoKash account as well as check their savings balance and loan account status.
To use this service, the customer has to be an active MTN Mobile Money subscriber, dial *182# and select MoKash to agree to the terms of the service in order activate the MoKash savings and loan account with CBA.
Speaking at the unveiling of the product at Kigali Serena Hotel, MTN CEO Bart Hofker attributed the success of MTN Mobile Money to continuous innovation by the company while aligning itself with the government’s drive to digitise the economy.
“MTN reaffirms its leadership position as the first Telco in Rwanda to commercially launch a combined savings and loans product. Partnering with CBA to bring this innovative product to the forefront reiterates our commitment to contributing to the national economic strategy on enhancing cashless transactions that offer convenience and security to all Rwandans.”
The service is expected to enhance Rwanda’s financial inclusion agenda as it makes it possible for people to easily use the service without having to fill in any documents while opening the account. In addition, no minimum balance is required, and no transactional charges are incurred while moving money between MoKash and MTN Mobile Money.
CBA’s Group Managing Director, Isaac Awuondo said, “We are delighted to build on the success of MTN’s Mobile Money service to offer a digitally delivered Savings and Loans solution. Savings and Loans solutions are especially critical to lowering the vulnerability of households to financial shocks and motivating productive investments. When savings and lending solutions are delivered digitally, we greatly lower the access barriers for households that are typically underserved by formal financial services providers. This is particularly relevant for women and youth. Through this innovative service, CBA is proud to serve 26 million customers in Kenya, Tanzania, Uganda, and now in Rwanda”.
MoKash is not entirely new as CBA has also strategically partnered with telecom giant MTN Uganda in 2016, Safaricom in Kenya with its sister product M-Shwari in 2012 and with Vodacom Tanzania with M-Pawa in 2014. These products have had remarkable success since their introduction in these markets, with a rapidly rising saving culture observed.
With over 1 million active Mobile Money subscribers, MTN is CBA’s choice as the delivery partner for MoKash because of its extensive coverage of the country coupled with its strong Mobile Money Agent network, which will allow for the rapid uptake of this product in Rwanda.
MTN Mobile Money, Rwanda’s leading mobile payment system, has revolutionized mobile technology for millions of Rwandans and provides the majority of the population with affordable, fast, and convenient financial services no matter how isolated they are. According to RURA, as of December 2016, over 8,9million Rwandans are active mobile subscribers, with over 4 million of those on the MTN network.
- MTN Rwanda has launched MoKash in partnership with Commercial Bank of Africa (CBA).