Company Profile

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5TH INTERNATIONAL CONFERENCE ON OPEN ACCESS 2007
HOW SOCIETIES BENEFIT FROM OPEN ACCESS TO ICT
Innovation, Development, Deployment, Mobile
Banking The Tanzanian Journey

• Company Profile

Nadeem Juma (Managing Director)
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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.
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Innovation, Development, Deployment, Mobile
Banking The Tanzanian Journey.

• Innovation
• The initial ideaproblem
• Development
• Turning the idea into a product.solution
• Deployment
• Putting the solution into the marketevaluation

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Process and Steps - What is the initial
idea? - Is there a problem that has been
identified? - Defining and classifying
innovationGoogle hypothesized that a search
engine that analyzed the relationships between
websites would produce better results than
existing techniques
Innovation as a Process

• Collective Minds
• - People from different discipline not only IT.
• - Visionaries
• - People with a knowledge and understanding of
  their society, community, and people.

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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, MFIs,)
• - 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)

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Belief and understanding in what you are doing.

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

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Statistics With the countrys population
approximated at over 34 million, It is estimated
that 17 of these people use their mobile phones
everyday.
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 Source Individual Operators Source Individual Operators
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- 2 Million Bank Accounts (1million banked
customers) -The total number of money transfers
being done daily in Tanzania is currently
estimated at 10,000.
Source Passing the Buck
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Process and Steps - Cultivating talent and
human resources - Sourcing, funding, and
finances - Commitment of the above - Technical
resources - Regulation and regulatorsIn an
environment that does not foster innovation the
challenges to find HR and Funding are equally
difficult.
Development as a Process
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• 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.

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• 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/wik
  i/Google

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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!?!

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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

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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
• - MFIs / SACCOS

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An Open Access System
Online payments
Mobile accounts
Money transfer
Bill Payments
Agents
MOBIPAWA
E-Fulusi Mobile Transactions Switch
Financial Institutions
Mobile Operators
ISPs
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Deployment
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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.

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Innovation at Play

• 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

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• 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 )

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Branchless Banking (Existing Infrastructure)

• 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

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• At the pawaSTATION, MobiPawa account holders are
  able to
• Top up their Accounts
• Withdraw Cash
• Cash their Money Transfers
• Receive Customer Care

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• The agent network will allow for easy country
  wide coverage. Agent can be petrol stations,
  SACCOS, MFIs 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.

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MOBIPAWA VIDEO
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• 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. MFIs)
• Salary Payments
• Bank Linkages (Banked Customers)

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