CLOSING THE LAST MILE THROUGH IT. THE CELLULANT EXPERIENCE

Casablanca, November 5, 2005

Cellulant Nig Ltd is a mobile commerce company that provides digital financial services and payment solutions. We launched services in 2002, and have dominant market positions in Kenya and Nigeria. We currently have offices in Tanzania, Ghana, South Africa, Zimbabwe, Mozambique, Uganda, Zambia and Malawi. We expect to be in 20 – 25 countries in Africa by the end 2020.

In 2012 we obtained a License to operate a mobile payments and services scheme. The services are running under the Cellulant Wallet brand in key sectors of the Nigerian economy. Our e-wallet is also an electronic device that allows an individual to make electronic financial transactions. These can include but not limited to receiving money, purchasing items, buying airtime, paying bills, sending money and also transfer to commercial banks using a mobile phone.

The wallet allows anyone to receive and send money to anyone with a valid cell-phone number. The money is transferred instantly and can be withdrawn as cash from ATMs or used for other services. It comes with so much convenience for the users as they are provided the option to choose from different access channels like Web, USSD, SMS and a Mobile Application.

Since 2012, the e-wallet technology has delivered services to about 12 million farmers under the Agriculture transformation Agency known as the Growth Enhancement Support (GES) Program. The GES program, an initiative led by Federal Ministry of Agriculture and Rural Development (FMARD)

The Growth Enhancement Support Program is the agriculture sector component of the transformation agenda of the federal Government of Nigeria. It seeks to lift 20 Million poor farmers out of subsistence into self sufficiency from the 6 geopolitical zones.The GES program puts the resource constrained farmer at the centre of the agriculture value chain and creates a series of incentives to encourage the critical actors in the fertilizer value chain to work together to improve the productivity, food and income security of the Nigerian farmer.

The GES program gets government out of the procurement and distribution of fertilizer and gets private sector actors such as banks, producers, distributors , agro-dealers to own the value chain for fertilizer

The GES program stimulates demand for fertilizer by putting a cash component of the product value directly into the hands of the farmers via mobile wallets.

Under GES scheme, a farmer is expected:To receive fertilizer (NPK & UREA) and seeds at an affordable price;To receive pesticides, fungicides, insecticides;Access to various information to improve agricultural production;Increase its yields;Access to credit facilities

Participant Role The Farmer To register for the scheme and use fertilizer. FMARD & States To operate and fund GES program and

coordinate the identification of beneficiaries. Federal Ministry of Finance To provide FGN guarantee for the

program. Suppliers of Fertilizer Make inventory available and build their

distribution channel across the Country. Banks Make financing available to approved suppliers. Cellulant To design, develop and operate the GES wallet. Supply Chain Managers To coordinate the activities of the entire supply

chain including operations of redemption centers.

Other FGN Agencies To provide access to the relevant databases for KYC purposes.

Mobile networks To provide access channels for farmers.

Wrong phone number for the registered farmer No phone number for the registered farmers who has a phone Registered phone number for a person who is not a farmer Incomplete phone number for the registered farmer Duplicate phone number

The farmer was not registered The agro-dealer was not registered/activatedHelpline staff phone number is not registered/activatedWrong phone number was used to redeem by farmer or helpline staff The helpline staff dialed the wrong farmer ID Farmer has exceeded the amount of inputs to be received Agro-dealer does not have enough inputsHuge variance between system report and field reportHuge variance between supply report and system report

2012 2013 2014FARMERS ON E WALLET

4,600,000 8,610,519 12,600,000

FAREMERS ROLLED OUT

1,700,000 6,653,681 9,600,000

FARMERSREDEEMED

1,200,000 3,800,000 7,000,000

NO OF REDEMPTION CENTERS

970 1,372 1,709

ACTIVE RC 970 1,208 1,549

NON ACTIVE RC 0 164 160

Public Enquiries & Complaints Handling Process for the GESFour Levels are used for handling complaints under the GES

▶ Three Levels are used for handling complaints in the non-GES period

1ST LEVEL

Frontline (GES

Registration/Redemption

Centre)

2nd LEVEL

Complaints Desk Officer

FMARD State Directors

Office

3rd LEVEL

Complaints Desk Officer

Directors Office Federal Fertilizer Dept

4th LEVEL

Cellulant

1ST LEVEL

Complaints Desk Officer

FMARD State Directors

Office

2ND LEVEL

Complaints Desk Officer

Directors Office Federal Fertilizer Dept

3rd LEVEL

Cellulant

GES Public Enquiries & Complaints Handling Handling During the GES Period

GES Public Enquiries & Complaints Handling During the Non-GES Period

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Registration of farmers; Determination of input providers, redemption quantities and pricing

structures Establishment of Redemption centers or service delivery points ; Placement of Help-line Staff or support persons ; Lending program for Agro-dealers ; Reconciliation & payment ; Reporting - Redemptions – Farmers Redemptions by inventory Turnout of farmers Transaction reporting to CBN Lending Reporting to NIRSAL Third Party Audit reporting to various FGN & Development Partners

Monitoring agents

GES Technology Architecture: Flow of Data, Inputs and money

Status of the GES Technology Platform The GES e-wallet platform is the largest mobile account

platform in Africa , with over 14 million M-accounts (Mobile-Accounts).

it is a high-tech, state of the art cloud solution built with the world leading advanced database and cloud technology known as Oracle 12C Database cloud.

As at 2014, the GES technology platform handles an average of 450 thousand transaction requests per day , the platform brings the power of Oracle 12c database’s 1,000,000 transaction processing capacity per minute.

The platform is engineered for both online and offline transaction processing.

It utilises advanced data mining, ware-housing processing, verification and authentication capabilities.

The platform provides important data to participating banks in GES for a transparent lending processes.

It is support the cash-less and financial inclusion of the un-banked to policy of the Government of Nigeria.

Establishing a Unique Identity for every farmer & Connecting them to financial Services

1. NAPI (Nigeria Agriculture Payment Initiative )An end-End Payment System for Agriculture

Every farmer with • chip based National ID card • Stand Alone Wallet linked to Mobile phone • Linked Wallet attached to a Basic transaction savings

account• Partner Wallet linked to pooled services such as

Cooperative Savings /lending/membership Schemes• Providing Access to Bill payment , Mobile banking &

mobile Money Services

Innovating for the future of GES through NAPI

Improving GES Redemption Centre & Reconciliation .

2. Every Agro-dealer with a POS that works in Off-line and on-line modes so that we can get merchant side data on to the GES Platform

The NAPI Program

Nigerian Agricultural Payments Initiative (NAPI) project was designed to ensure that a critical component of the Nigerian economy, Farmers etc, have access to financial services (payment, credit , etc ) through the proper identification & clustering of such individuals. The Project was developed to provide the following benefits:

Seamless experience of Farmers at the Redemption centers and reduction of fraud in the distribution of financial incentives

1

Reliable authentication of farmers identities which eradicates double identity cases.

2

Provides a biometric database of Nigerian farmers3

Financial inclusion of Nigeria farmers, through a card strategy, provision of e-wallet services and no-frills accounts for the Farmers4

Nationwide opportunities for Agriculture Credit & Savings opportunity from rural areas if farmers are properly organized5

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Context of NAPI is GES evidence based findings

Pre-enrollments: 14. 5 Million farmers are in the National Farmer database; only 1million farmers have their farmer cluster information in place

01

Identity: Only 2.9Million have a government issued identity document;

02

Financial services: Only 2.1 million have access to financial services

03

Redemptions via phones: Of the 7million farmers who came to a redemption centre in 2012/2013 , an average 3million (53M transactions) used their phones to redeem & 1 million were redeemed through a third party; and

04

Network coverage: 180 (10%) redemption centers out of the cumulative 1800 redemption centers have no network .

05

What Needs to be done?

• Move all farmers , to a full enrollment status & ensure that every farmer has the chip-based national ID so that farmers are the first group of Nigerians to benefit from Mr. President’s Directive that every Nigerian should be enrolled

• Leverage the card capabilities for payments & service delivery to ensure that farmers can get access to finance & be able to do redemptions when there is no network. This adds a chip card & POS device as additional redemption options for GES.

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The farmer is the intersection point between inputs, commodity and financial markets. NAPI is the link between these variables

Farmer

Input Market

Commodity Market

e-WRS Sales Income

Subsidy Voucher

SWAP

Input - GESCommodity Trade – e-WRS

Agric. Inputs for Commodity SWAP Contract

Agro-dealers will become an agent for Input and Commodities (e-WRS/Exchange)

Insurance

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The National e-ID Card

The National e-ID Card Information

Standard e-ID Details

Unique EMV PAN Number

Unique Document Number

ICAO features (photo, birth date, issue date)

ICAO MRZ lines

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The NAPI Program is based on three pillars…

Nigerian Agricultural Payments Initiative NAPI

1 2 3

IDENTITY PAYMENT CLUSTERING

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Farmers’ Enrolment Process.

Identification & Clustering of Farmers

1 2 3 4 5 6

Pre-enrolment for demographic data capture

Biometric Data Capture by Enrolment Officer

De-duplication and storage in NIMC Database

Storage of Demographic Data in Farmers Database

Issuance of NIN

Farmers are provided confirmation slip by Cluster Agents

Pre-enrolment Officer captures demographic data of Farmers and Issues a 2D bar code

Enrolment officer calls up demographic data using the 2D bar code and captures biometric data

Farmer’s biometrics is de-duplicated at the NIMC Back end to ascertain unique identity

Demographic data subset is stored in Farmers database via the staging server hosted by NIMC

Enrolment officer issues the Famer a NIN Slip

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Olugbenga OwolabiChief Service Delivery Officer

Cellulant Nigeria LimitedPatrick.gbenga@cellulant.com

08099307222,08078540037