“With mobile phone users in Africa already at an estimated 250 million, companies like M-PESA may be the key to reducing poverty.”
Mobile phones are revolutionising Africa. Over the past five years its mobile phone use has increased at an annual rate of 65 percent, which is twice the global average – and is helping improve the lives of millions of Africans.
This mobile phone boom is having a positive impact in some surprising areas, such as banking. Nine out of ten people in developing countries have no bank account, which means they can’t safely save money, and makes breaking out of the poverty cycle almost impossible.
Mobile banking services like Kenya’s M-PESA (M for mobile, pesa is Swahili for money) are going about changing this, giving its customers access to banking services such as savings accounts, small loans and transfer service, all directly from mobile phones. M-PESA targets mobile phone customers who live far away from the nearest bank branch or who cannot afford the charges associated with opening a bank account. Savings help people make investments like buying livestock, a loan may help expand business activities, insurance can reduce vulnerability if someone becomes ill, and money transfers enable family members to work away from home and send wages back to loved ones.
With mobile phone users in Africa already at an estimated 250 million, companies like M-PESA may be the key to reducing poverty.
