Econet to launch Eco Cash mobile money

Tweet Become a fan on Facebook here or follow us on Twitter here

guest post by Rebecca Jones

Econet Wireless, Zimbabwe’s biggest mobile operator has announced launching of Eco-Cash, a mobile money platform at the end of this September. Econet has 50 percent of the market in Zimbabwe and also operates in UK. The company currently has more than 11 million subscribers.

Mobile money platform seems to be a viable solution as most people now own a handset. Many people don’t have a bank account or access to internet, but most do own a phone. In this scenario the use of phones as a tool for doing transactions has been limited. Econet promises to tap this advantage and use it to make payments below $20. The emerging markets have shown more interest in adopting these technologies to pay bills, purchases etc. The company will work in collaboration with retailers, banks and dealers to develop an ecosystem where mobile transactions become more convenient and popular. This system can also be a solution throughout the world for making purchases that involve few dollars as it can save banks from the hassle of issuing currency notes of lesser denomination and also people wouldn’t need to carry cash for buying trivial things.

Econet has made an investment of millions of dollars on developing the system and will be looking to make big profits through this new platform. Since, it has the largest consumer base in its country you can speculate on the success of this system. All it would need is the two people to have the Econet cell phones. The system is expected to transform the way people would buy and sell goods in Zimbabwe. The system is especially expected to boost those businesses that involve trivial transactions including retail stores, newspaper vendors etc. So you won’t need to shell out coins to buy a newspaper or a cigarette. The system is currently being tested with few stakeholders before it is launched to the people later this month.

WATCH VIDEO:

There is a critical shortage of US dollar notes in the African markets and this system will eliminate the need of them for daily transactions. According to the Bankers Association of Zimbabwe, billions of dollars are not in the formal banking sector due to a high cost of transactions. There is a lack of confidence in the local financial services sector which is hindering the flow of cash in the economy. The Eco-Cash will be based on the concept of M-Pesa launched by a Kenyan company. Notably Kenyan mobile operator Safaricom launched M-Pesa, a mobile banking system, which currently has 11.9 million registered customers. This number accounts to 73 percent of the company’s customer base. The service has been a big hit leading to partnership with 19500 retail stores accounting for cash transfers equal to 17 percent of Kenya’s GDP.

Econet Wireless is expected to cross the 6 million customers’ mark, which will surely boost its claim to provide easy transaction option to nearly half the population; falling on its Econet line. The company is arguably one of the most successful telecom companies from the emerging economies. It was first in the world to introduce mobile news service of BBC and CNN. It owns 3G licence in New Zealand and has built an international satellite hub in UK. Company’s founder Strive Masiyiwa has been named one of the global influential by Time magazine. Econet Wireless is a result of his dream to build an African multinational enterprise. With companies like Vodafone and Orange set up in Africa, and companies like Bharti and Essar looking to venture into these markets, Africa certainly seems to be the next big thing in the cellular space. Econet Wireless is well positioned to take its business to the next level.

_____________________________________________________
About the author: Rebecca is a blogger and a writer. She is a gadget buff. Beside this she loves travelling and exploring new places. These days she is busy with her article on future technology.

Write for Africa Business Review and become a guest blogger. Send your story.

Follow me:

Bloomberg Businessweek: http://bx.businessweek.com/profile/erika-amoakoagyei/eamoakoagyei790/

Twitter: http://twitter.com/Erika_Amoako

Facebook: Africa Business Review Face Page

Facebook: http://www.facebook.com/AfricaBusinessReview

Website: www. AfricaBusinessReview.net

Website: www.ExploreAfricanCulture.com

Responses and feedback welcome below. Thank you!