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How Access to Finance Changes Lives

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By Carol-Jean Harward, Investment Director, Norsad Capital

Africa has undoubtedly made immense gains in lifting people out of poverty. But it’s also clear that there’s still a long way to go, with the rest of the world having made up much more ground in eradicating extreme poverty. If the continent is to meet the United Nations’ Sustainable Development Goal (SDG) of ending poverty in all forms by 2030, then it’s clear that efforts must be redoubled with a focus on innovative solutions that make a tangible difference in people’s lives.

On that front, access to finance is critical. It allows people to take out the loans they need to become homeowners or to study, for example. But it also allows entrepreneurs to access the funding they need to grow their businesses. The formalisation that comes from that access, meanwhile, can make it easier for businesses to take advantage of tax incentives and subsidies, further bolstering their growth.

Fortunately, there are a number of organisations across the continent that have found innovative and exciting ways of providing Africans with access to finance. In doing so, they’re not simply replicating what has worked elsewhere. Instead, they’re taking an approach that recognises the on-the-ground realities of finance in Africa and makes extensive use of the tools that ordinary Africans use most.

A massive need

Before taking a deeper look at the approach some of those organisations are taking, it’s worth exploring how big of an issue access to finance currently is across Africa.

According to World Bank data, just 35% of people over the age of 14 in 28 sub-Saharan African countries had formal bank accounts in 2021. Of course, that average isn’t evenly distributed. Countries with mature formal financial sectors such as Mauritius (nearly 90%) and South Africa (now at 85%) have much higher rates of account holders than the likes of Sierra Leone and Guinea (both under 14%).

Even when you take mobile money – Africa’s biggest financial inclusion success story – into account, 57% of Africans do not hold any kind of bank account, according to Africa Tech. Finding ways of shifting those numbers is absolutely crucial to alleviating poverty and changing lives.

In addition to the examples I’ve already mentioned (of people taking out loans for themselves and businesses) there are a number of ways that access to finance can be transformative. Take savings for example. With easy access to financial products, people can save more easily and securely. That, in turn, makes it easier for them to ride out emergencies, invest in their own and their children’s future, and even eat healthier.

But it also allows people to access government assistance without having to stand in long queues, easily accept remittances from family members working abroad or in another part of the country, and access other financial services such as insurance.

Meeting the need with mobile

Unsurprisingly, one of the most powerful tools in addressing this need for financial inclusion is the mobile phone. In countries with high mobile penetration rates such as South Africa, Kenya, and Nigeria, it’s common for people who might not even have access to electricity at home to have a mobile phone.

As a consequence, mobile money has been a vital enabler for millions of poor people in Africa who do not have access to formal financial services like banks. With mobile financial account ownership and usage continuously rising, it’s becoming the preferred account compared to traditional bank accounts in some places.

Innovative financial solutions like mobile money play a significant role in improving the lives of many people in urban and rural areas. In the past, that was simply down to the fact that it enabled people to send and receive money. But it’s evolved beyond that, giving people access to subscription services and even to sell goods and services across international borders.

MFS Africa has played a particularly important role in driving that evolution. MFS Africa is the largest digital payments hub on the continent. It works closely with mobile network operators, money transfer organisations and financial institutions to bring simple and relevant financial services to unbanked and underbanked clients.

Since its founding, it has connected more than 400 million mobile money accounts and 200 million bank accounts. Additionally, it has helped empower more than 200 000 mobile money agents in Nigeria along with more than 260 000 clients and businesses across the continent. And by the fact that it operates across more than 600 payment corridors, it’s made it much easier for people to send and receive money no matter where it comes from or where it’s going.

Building a brighter financial future

With mobile penetration and rates of connectivity in Africa growing all the time, the role of mobile-first financial services will only grow more important. Indeed, there is no doubt that they will be vital if the continent is to reap the full benefits of financial inclusion. We’ve seen first-hand, through MFS Africa and other portfolio companies, how important innovation is to building that inclusion. It’s something that we’ve long believed in and which forms part of our mandate as a financing provider but it’s also something we’ll keep driving long into the future.


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

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Court Discharges, Acquits, Kawu, Ex-NBC DG of N2.5Bn Fraud

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Justice Folashade Ogunbanjo of the Federal High Court Abuja has discharged and acquitted Ishaq Kawu Modibbo, former director-general, National Broadcasting Commission (NBC), and Pinnacle Communications Limited.

Ishaq Kawu Modibbo, former director-general, NBC

They were being prosecuted by the Independent Corrupt Practices and other related Offences (ICPC) of charges bordering on the ₦2.5 billion released to Pinnacle Communications under the Federal Government Digital Switch Over (DSO) project.

Delivering judgement on Thursday, Justice Ogunbanjo held that the ICPC was not able to prove the allegations against the defendants.

The judge further discharged the defendants on the grounds that the statements and evidence of the witnesses, could not pin any allegation on the defendants.

She further held that some of the witnesses contradicted themselves, and none of their statements was able to link the defendants to the charge.

According to the judge, while some of the witnesses in their oral evidence, said Lai Mohammed, former Minister of Information, was misled in approving the payment of ₦2.5 billion to Pinnacle Communications Ltd, they failed to render any documentary evidence.

The trial of the former director-general of the NBC lasted for six years.

He and Pinnacle Communications were prosecuted by the ICPC, on a five count amended charge over the release of ₦2.5bn to Pinnacle Communications Ltd, under the approval of Mohammed, under the FG Digital Switch Over (DSO) project.


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FG Urges Radio Stations to Promote Climate Change Awareness

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The Federal Government has urged all radio stations in Nigeria to use their platforms to create awareness about climate change and its impact on the country.

The Minister of Information and National Orientation, Mohammed Idris, stated this in a statement he personally signed on Thursday in celebration of World Radio Day.

“Through informative and educational programs, Radio, like other critical media, can equip communities with the knowledge and tools to adapt to the changing climate and mitigate its effects,” he said.

He challenged radio stations to collaborate with other organisations and experts in the field of climate change to provide accurate and reliable information to listeners through interviews with scientists, environmentalists, and policymakers to enhance understanding of the issue and work towards finding sustainable solutions in line with President Bola Ahamed Tinubu’s Renewed Hope Agenda.

The Minister said, “The environment community should use this opportunity to reflect on their actions and how they contribute to climate change by adhering to simple changes in their daily habits, such as reducing plastic usage, conserving energy, and promoting sustainable agriculture, in order to make a significant impact in the long run.

“As Nigeria joins the world to celebrate the role of radio in fighting climate change, it is also important for citizens to remember that effects of climate change issues are beyond borders and are felt globally.”

The minister, therefore, appealed to Nigerians to join hands with other nations to find solutions and create a better future for the generations to come.

While congratulating UNESCO on this initiative, Idris wants the power of radio to be fully harnessed to make a difference and protect the planet for future generations.

 


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KongaFM 103.7 Garners Thousands of Listeners, Gets Rave Reviews

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KongaFM 103.7, the 24/7 innovative hit music and commerce radio station, has taken the airwaves by storm since its recent launch.

KongaFM 103.7 Garners Thousands of Listeners, Gets Rave Reviews

Operating on terrestrial frequencies in Lagos on 103.7 and streaming online for listeners globally at www.kongafm.com, KongaFM has quickly become a favourite among audiences.

The radio station blends entertainment, inspiration, and commerce in a way that is both refreshing and impactful.

Despite being in its test run phase, the station has already garnered thousands of listeners, with many praising its professionalism, unique programming, and commitment to delivering value.

The station kicked off with an exciting mix of hit music, motivational content, and commercial activities, setting itself apart as a trailblazer in the radio industry.

True to its promise, KongaFM has been inspiring listeners while offering exclusive deals and opportunities.

One of the standout features of the station is its daily exclusive deals segment, broadcast from 7:00 to 8:00 AM.

Listeners have lauded the genuineness of these deals, with many expressing their satisfaction with the quality and affordability of the products promoted.

Feedback from listeners has been overwhelmingly positive. During a recent show on Thursday afternoon, the station was inundated with calls from enthusiastic listeners eager to share their thoughts.

While not all calls could be taken, the feedback received was nothing short of astounding, especially for a newcomer in the radio industry.

One listener, Grace Yusuf, mentioned how the station has positively impacted her daily routine.

“KongaFM is my go-to station every morning while commuting to work. The gospel music is great, while other content and inspiring discussions keep me motivated throughout the day,” she said.

Tunde Obaposh, currently pursuing his PhD in Robotics in Kansas, shared his experience streaming Konga FM online.

“I believe KongaFM is going to redefine the standard in the radio space. I love how they incorporate AI into their broadcasts, making the experience seamless and engaging,” he noted.

Another enthusiastic listener, Michael Arinze, described KongaFM as “a breath of fresh air in the radio space.

They’ve not only delivered on their promise of hit music but have also created a platform where businesses can thrive. I’ve already taken advantage of two deals they promoted, and I can confirm they’re genuine.”

What truly sets KongaFM apart is its commitment to inspiring and motivating its audience. From the best gospel hits from 5:00 – 7:00 AM to thought-provoking discussions and hit music throughout the day, the station has created a unique listening experience that resonates with a wide range of audiences.

As the station continues gaining momentum, one thing remains certain — KongaFM 103.7 has carved a niche for itself in the industry.

With a unique blend of entertainment, business empowerment, and audience engagement, it is no surprise that many have hailed it as a game-changer in the Nigerian radio landscape. For those yet to tune in, KongaFM promises an exciting and rewarding experience.

 

 


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