DBN finance for innovation and financial access

THE Namibian company Mobipay, a recipient of Development Bank of Namibia (DBN) finance, is simplifying and improving life for Namibians and their communities by developing transaction systems for mobile devices.

The dream of establishing Mobipay was born when partners in Aantu Investments, Amos Shiyuka, Claus Deckenbrock, Sedrick van Turah and Dee Sauls, saw similar mobile payment concepts in other African countries, which prompted them to begin discussions to start a company in the same vein.

“After seeing the concept in other African countries, we came to the realisation that if cellphones are so powerful on the continent and the world today, we could turn it into a tool that can do almost anything. We saw an opportunity for the cellphone to be more than just a receiving and calling device, but a multitasking tool, which can carry out other functions,” says Executive Director, Shiyuka.

According to Shiyuka, they decided that since most people own cellphones, they will “convert that tool into a wallet”. This means that people no longer have to carry cash, but can access virtual money on their mobile Mobipay accounts, allowing them to make various transactions at the touch of a button.

Shiyuka says: “Initially we thought the target market would be predominantly young professionals and SMEs. However, we realised that this product is for everyone who owns a cellphone. Children can buy airtime, their parents can transfer money to them, people can purchase or pay for electricity, transfer money to their families and friends and do other bill payments from their phones.

“People can transfer funds from their bank accounts to their Mobipay account or they can deposit money at any Mobipay agent, which will go onto their phone. It is like a debit account that allows all kinds of transactions such as paying bills, transferring money and purchasing at retail shops by swiping with their cellphone,” he explains.

The company has grown dramatically since its establishment, in 2010. Mobipay has branches in the Erongo, Oshikoto, Otjozondjupa, Khomas and Oshana regions, which Shiyuka describes as the most populated regions in the country.

The company has 23 full time employees across the country. Shiyuka adds that they also employ temporary workers when the need arises. “The sky, however, is not the limit as the company plans to cover all areas in the country with existing networks.”

Asked why DBN financed Mobipay, Head of Lending, Martin Inkumbi said the bank sees access to financial systems as a priority for development, and has financed and engaged in a number of initiatives to foster access. He said these included finance for technology to bolster Nampost Savings Bank, engaging in SME lending activities with partner banks in the commercial finance subsector and providing finance for a bureau de change.

According to Inkumbi, the commercial financial sector may be constrained by risk management principles aimed at protecting revenue streams from negative impacts of uncertain lines of business. “DBN has a higher risk appetite, in keeping with its mandate, so it is able to test innovation in the financial sector, and show the way ahead for financial service provision,” he says.

DBN’s response to the project has proved to be spot on, as the company has received the most Innovative Company for the Year Award during the 2011 Namibia International Investment Forum.