Company Profile

5TH INTERNATIONAL CONFERENCE ON OPEN ACCESS 2007

“HOW SOCIETIES BENEFIT FROM OPEN ACCESS TO ICT”

Innovation, Development, Deployment,

Mobile Banking The Tanzanian Journey

Nadeem Juma (Managing Director)

Our Vision at E-Fulusi Africa (T) Limited is to initiate the creation of African

solutions through research and product development

in Tanzania, that will serve the greatly under serviced markets in a easy cost

effective manner.

-Innovation: -The initial idea…problem…

-Development:-Turning the idea into a product….solution…

-Deployment-Putting the solution into the market…evaluation…

Innovation, Development, Deployment,

Mobile Banking The Tanzanian Journey.

Process and Steps - What is the initial idea?

- Is there a problem that has been identified? - Defining and classifying innovation

Google hypothesized that a search engine that analyzed the relationships between websites would produce better results than existing techniques

Collective Minds

- People from different discipline not only IT.

- Visionaries

- People with a knowledge and understanding of their society, community, and people.

Innovation as a Process

Creating E-Fulusi Mobile Transaction Switch (EFMTS).

The Initial Idea for us:- Getting reach to the masses - Providing an affordable solution- Changing the lives of our people

The Problem Identified:- Lack of access to financial services- Increasing demand for financial services (SACCOS, MFI’s,)- Growing informal sector

Defining Innovation:- Taking an existing model and making it better- Not recreating the wheel, using existing infrastructure- Developing a solution and service (EFMTS / Mobipawa)

Belief and understanding in what you are doing.

- Information about the industry you are venturing into- Other Models- Statistics

“Most of those three billion

people don’t have a safe place

to save money. What ultimately gets people out of

poverty, and prevents them

from being vulnerable to

crises, is when they have a

nest egg to fall back on” –

CGAP

“Some 3 billion

people can be

helped out of

poverty through

M-Banking” –

WORLD BANK

OPERATOR/ YEAR TTCL ZANTEL MIC VODACOM CELTEL TOTAL

2000 173,591 4,007 56,511 50,000 - 284,109

2001 177,802 6,501 89,059 180,000 - 453,362

2002 161,590 26,770 160,000 300,000 120,089 768,449

2003 147,006 68,000 210,000 700,000 320,000 1,445,006

2004 148,360 85,000 303,000 1,050,000 504,000 2,090,360

2005 154,420 96,109 422,500 1,562,435 882,693 3,118,157

2006 157,287 355,993 760,874 2,975,580 1,516,832 5,766,566

2007(March) 187,567 414,763 801,456 3,247,921 1,676,392 6,328,099

Source: Individual Operators

StatisticsWith the country’s population approximated at over 34 million, It is estimated that 17% of these people use their mobile phones everyday.

- 2 Million Bank Accounts (1million banked customers)

-The total number of money transfers being done daily in Tanzania is currently estimated at 10,000.

EMS (Expedited Mail Service)

BUS Companies

Western Union

Money Gram

Postal money Order

Commercial Banks

Source: Passing the Buck

Process and Steps - Cultivating talent and human resources

- Sourcing, funding, and finances- Commitment of the above- Technical resources- Regulation and regulators

In an environment that does not foster innovation the challenges to find HR and Funding are equally difficult.

Development as a Process

Cultivating Talent and Human Resources

- Education (manpower is available locally)

- Culture (few are ready to involve themselves)

- Challenge (Easy paying employment is available somewhere else, why crack my head?)

- Capable HR want immediate recognition (lack of collective thinking and mind)

Ownership must be taken by all HR in order for a collective result to be achieved.

Sourcing Funding and Financing

-Financial institutions do not invest in innovation

- Lending periods are short and do not foster innovation

- Financiers often have ulterior motives

“The first funding for Google as a company was secured in the form of a USD100,000 contribution from Andy Bechtolsheim, co-founder of Sun Microsystems, given to a corporation which did not yet exist” source- http://en.wikipedia.org/wiki/Google

Technical Resource

Existing ICT Environment- Partners / Providers (Lack of understanding of own industry)- Developers thus have to know about every area

To develop a solution (your layer), you have to go through all the base layers

(eg. If I am to make use of a server, I need to know all about the servers, which is suitable for my use. Dealers are not in a position to advice)

- Accountability

Price of Hardware and Software is very HIGH- How do I determine my Pricing while cost is impossible!?!

Regulations and Regulators

Bank of Tanzania (BOT)

- Setting out policy framework

- Role of Developers

- Conform to Standards

- Due Diligence (E.g. KYC)

Tanzania Communication Regulatory Authority

- Technology Neutrality Policy

- Open to new innovations

- Protection

- Regulation is open

Working with Partners

Strategic partnerships allow for ongoing innovation and specialization of industries, thus increasing development and innovation.

Our Partners

- Banks/ Financial Institutions

- Telecommunication Operators

- Internet Service Providers

- Commercial Networks

- MFI’s / SACCOS

An Open Access System

E-Fulusi Mobile Transactions Switch

MOBIPAWA

Mobile accounts

Money transfer

Online payments

Bill Payments

Agents

Financial InstitutionsMobile Operators ISPs

Deployment

M-Banking in Tanzania

Mobipawa is a payment service powered by E-Fulusi through (EFMTS), where mobile phone users across Tanzania are able to hold transactional accounts (independent to airtime account) and transact through their mobile phones.

MobiPawa is the first comprehensive solution which directly addresses the gap between the banked and unbanked communities.

MobiPawa will immediately provide the capacity to offer accounts to over 6 million mobile subscribers.

MobiPawa is Network and Bank Independent.To open a MobiPawa account you do not need

to have a conventional bank account.To use MobiPawa you do not need to purchase

a new or network specific sim card.Network Independent (currently available on

all major operators)Multiple Access Modes: (SMS, Online, Java App)Works with any handset

Innovation at Play

MobiPawa permits immediate money transfers from every corner in Tanzania.

The MobiPawa account operates like any bank account, allowing the user to save, spend, receive and send money.

Users are able to see their transactional statements on their phones, or on-line at through our portal ( www.mobipawa.co.tz )

To get a MobiPawa account is absolutely free of charge!

All one needs to do, is visit the nearest MobiPawa agent known as a pawaSTATION, and represented by the sign below:

Branchless Banking (Existing Infrastructure)

At the pawaSTATION, MobiPawa account holders are able to:Top up their Accounts Withdraw CashCash their Money TransfersReceive Customer Care

The agent network will allow for easy country wide coverage. Agent can be petrol stations, SACCOS, MFI’s banks, etc)

Once a MobiPawa account has been registered, transactions can be conducted immediately, easily and efficiently.

MobiPawa account holders can transact with other MobiPawa account holders and can send transfers to non-account holders.

MOBIPAWA VIDEO

Over and above money transfer services, the MobiPawa account is dynamic.

MobiPawa will, after the initial launch period, introduce products that will allow account holders to;

- Make Bill Payments- Make Merchant Payments- Loan Distribution and Collection (SACCOS. MFI’s)- Salary Payments - Bank Linkages (Banked Customers)