EAC Financial Inclusion Stakeholder Mapping

REPORT

JANUARY - 2020

Supported by the: 1 Acknowledgements

This report was produced by FinTechStage and Canela Consulting (our research partners). Contributors included Dr. Erin Taylor, Dr. Whitney Easton and Luis Carlos Serna Prati. Ariadne Plaitakis contributed material on regulation. Data analysis was carried out by Mariela Atannasova and Gawain Lynch. Infographics were produced by Ana Subtil, Mariela Atanassova and Whitney Easton.

We would like to thank the Bill and Melinda Gates Foundation for their active support of the programme and the broad access to research material on Financial Inclusion.

Lazaro Campos Co-Founder, FinTechStage

January 2020

2 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT EXECUTIVE SUMMARY

The East African Community (EAC), a regional economic community, is often presented as a model of financial inclusion in Africa. Over the past few years, we have seen tremendous improvement across the region, but much remains to be done. The purpose of this body of work is to understand the state of financial inclusion across the EAC and identify how to advance. The first step is to map the financial inclusion landscape to identify stakeholders, gaps, and areas for intervention. We carried out data collection and network mapping for all six EAC Member States. In this report we identify:

• All stakeholders who are working on financial inclusion issues in the EAC, including the financial sector, mobile network operators (MNOs), mobile money operators (MMOs), microfinance institutions (MFIs), new fintech players, non-for-profit organisations and government bodies

• Thefinancial inclusion initiatives taking place across the region in different areas: Advisory, Advocacy & Coordination, Capacity Building, Products & Innovation, Financial Literacy, Financial Sector Development, Funding & Investment, Infrastructure, Market Development, Payments Interoperability, Policy, Regulation & Supervision, Regional Integration, Social & Consumer Protection and Strategy

• The role of government in this landscape in developing and implementing National Financial Inclusion Strategies, policies and regulation

• The extent to which three key populations are covered by financial inclusion: women, smallholders and MSMEs

• Market maturity and its potential to advance financial inclusion in each EAC Member State

We identified the following gaps in financial inclusion provision:

• Stakeholder diversity—All markets are dominated by MMOs, MFIs, MNOs and banks. Kenya, Tanzania and Uganda are more diverse in the fintech space, which is promising for creating an anti-fragile market where local companies develop locally appropriate products. There is reasonable diversity in not-for-profit and international organisations, but their numbers are relatively low compared to other sectors

• Reaching disadvantaged groups—For financial inclusion to be effective it needs to reach disadvantaged and economically important groups such as women, smallholders, refugees and MSMEs. Not-for-profit and international organisations are especially well-placed to provide capacitation programs for the poor to overcome issues of distrust, literacy, etc.

• Leveraging local stakeholders—Implementing successful financial inclusion initiatives can require local knowledge of market activities, culture and politics

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 3 • Increasing access and usage—Across the region, the majority of people who do not have an account say they would like to have one but do not have enough money to use one. Increasing incomes, digitising incomes, and increasing awareness of how digital wallets work may assist with increasing both access and usage

• Harmonise legislation across the region (as per Banque Centrale des Etats de l’Afrique de l’Ouest [BCEAO] in West Africa and Central African Economic and Monetary Community [CEMAC])

• Develop a regional biometric ID to overcome KYC challenges (as per BCEAO)

• Stimulate regional initiatives to accelerate the growth of fintech; for example, regional innovation hubs that focus on cross country learnings, attracting foreign investment, or a regional sandbox network to allow passporting from one country to another (as per the Global Financial Innovation Network [GFIN]) • Development of regional interoperable payment schemes

• Support for cross-border collaborations and knowledge sharing, such as the development of partnerships and opportunities to share strategies and knowledge, including lessons in G2P payments, tailoring products to specific groups, or tackling inefficiencies in service delivery to increase profits

• Capacity-building for financial inclusion stakeholders, especially those who serve financial inclusion goals indirectly, to improve their product offerings for lower income and remote people and help them understand when strategies to reach consumers need to be tailored to niche groups or circumstances

Further actions may need to be aimed at particular populations or contexts, such as financial services with interfaces suitable for people with low literacy levels, or apps designed for mobile youth. In some cases, the functionality of products and programs may be suitable for a broad population, but may need to be delivered to particular groups in specific ways.

There is plenty to be done to advance financial inclusion in the EAC, and also plenty that can actually be done. A multilateral and differentiated approach is the most efficient, resilient, and human-friendly way to fill the present gaps in provision and create a kind of financial inclusion that provides value to people, businesses, stakeholders and benefits society at large.

4 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT TABLE OF CONTENTS

ABBREVIATIONS AND ACRONYMS 6 FIGURES 7 INTRODUCTION 8 COUNTRY COMPARISON 11 FINANCIAL SERVICE PROVIDERS AND PROGRAMMES 20 Major Regional Players 21 Mobile Money Operators 25 Banks and Microfinance Institutions 28 Not-for-Profit and International Organisations 32 Money Transfer Operators 35 Fintech Companies 36 Savings and Credit Cooperative Societies (SACCOS) 38 NATIONAL GOVERNMENT 41 Policy and Regulation 43 Kenya 43 Tanzania 45 Uganda 48 Rwanda 49 Burundi 50 South Sudan 51 G2P Payments 52 Case Study: Tanzania 54 KEY POPULATIONS 56 Women 59 MSMEs 62 Smallholder Farmers 63 ECOSYSTEM MATURITY 68 THE PATH FORWARD 72 Methodology 75 APPENDIX A - NETWORK MAPS 76 APPENDIX B - LISTS OF STAKEHOLDERS IN THE EAC 83

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 5 ABBREVIATIONS AND ACRONYMS

ADB — African Development Bank BCEAO — Banque Centrale des Etats de l’Afrique de l’Ouest CEMAC — Central African Economic and Monetary Community COMESA — Common Market for Eastern and Southern Africa DIL — Data Integrated Limited EAC — East African Community EAMU — East African Monetary Union EAPS — East Africa Payments Systems FSA — Financial Services Authority FSDP — Financial Sector Development Programme G2P — Government to Person GDP — Gross Domestic Product GFIN — Global Financial Innovation Network GNI — Gross National Income I-CSP — Interim Country Strategy Paper JOYWO — Joyful Women’s Organisation MFI — Microfinance Institution MMO — Mobile Money Operator MNO — Mobile Network Operator MSME — Micro and Small to Medium Enterprise MTO — Money Transfer Operator MTP3 — Third Medium Term Plan NFIF — National Financial Inclusion Framework NFIS — National Financial Inclusion Strategy NGO — Non-Government Organisation NIFC — Nairobi International Financial Centre P2G — Person to Government POS — Point of Sale PSSN — Productive Social Safety Net (Tanzania) RTGS — Real Time Gross Settlement Systems RISA — Rwandan Information Society Authority SACCOS — Savings and Credit Cooperative Society SSA — Sub-Saharan Africa TASAF — Tanzania Social Action Fund UWEP — Uganda Women Entrepreneurship Programme WEDAC — Women’s Empowerment Development Agency WOCCU — World Council of Credit Unions

6 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT FIGURES

Figure 1. Key facts about the EAC. Figure 2. Key indicators for the EAC countries. Figure 3. Key indicators in the EAC. Figure 4. Reasons for not owning an account in the EAC, by country. Figure 5. Ability to raise emergency funds, poorest 40% and the richest 60%. Figure 6. Methods for raising emergency funds, poorest 40% and the richest 60%. Figure 7. MTN and Airtel Money mobile money agent on the edge of Kampala, Uganda. Figure 8. Mobile network operators in the EAC. Figure 9. Fintechs in the EAC. Figure 10. Mobile money operators in the EAC. Figure 11. Percentage of poorest 40% and the richest 60% with a mobile money account in the EAC, by country. Figure 12. Financial inclusion in the EAC. Figure 13. Percentage of poorest 40% and the richest 60% with an account at a financial institution in the EAC, by country. Figure 14. Banks per 100,000 adults in the EAC. Figure 15: Number of MFIs in each EAC country. Figure 16. NGOs offering financial inclusion programmes in the EAC, by country Figure 17. Major not-for-profit and international organisations with financial inclusion programmes in the EAC. Figure 18: Number of money transfer operators in each EAC country. Figure 19: Remittances in the EAC. Figure 20. Number of fintechs per EAC country. Figure 21. SACCOS in the EAC. Figure 22. Government initiatives for financial inclusion in the EAC. Figure 23. Main focus areas of NFIS strategies and programmes in the EAC. Figure 24. G2P payments in the EAC. Figure 25. The Tanzanian social protection system through the lifecycle lens. Figure 26. Demographics targeted by financial inclusion initiatives in the EAC (excluding SACCOS). Figure 27. Financial inclusion initiatives in the EAC targeting consumers. Figure 28. Gender differences in financial services use in the EAC. Figure 29. Financial inclusion initiatives in the EAC specifically targeting women. Figure 30. Financial inclusion initiatives in the EAC specifically targeting MSMEs. Figure 31. Rural population and rural poverty in the EAC, by country. Figure 32. Employment in agriculture in the EAC, by gender and country. Figure 33. Financial inclusion initiatives in the EAC targeting smallholders. Figure 34. A Maasai herdsman in Tanzania. Figure 35. Network maps of financial inclusion stakeholders in the EAC, per country.

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 7 INTRODUCTION

8 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT The East African Community (EAC), a regional economic community, is often presented as a model of financial inclusion in Africa. Kenya is home to the most successful—and most famous—mobile money service in the world, M-Pesa. Tanzania led the pack with developing a domestic interoperable payments platform. Nairobi is one of Africa’s fastest-growing fintech hubs, which is promising for the development of future innovative services for the poor. And the EAC is making great strides in governmental cooperation and financial integration.

All these factors help speed up the process of financial inclusion and indicate a promising future for the region.

However, these success stories may hide the fact that improvement in financial inclusion rates has been highly uneven across the region. In Kenya, a politically stable country with a Gross National Income (GNI) per capita of USD1,620,i 82% of people over the age of 15 had an account in 2017ii. In South Sudan, a politically unstable country with a GNI per capita of USD460, just 8.6%iii of people had an account in 2017.

These statistics for financial inclusion figures are mirrored in the composition of the stakeholder landscape. According to our data, 27% of all financial inclusion initiatives in the EAC are located in Kenya, 21% in Tanzania, 21% in Uganda, 15% Rwanda, 10% in Burundi, and just 6% in South Sudan.iv

The statistical gap between EAC countries highlights a problem with financial inclusion implementation: financial inclusion tends to be more successful in the more developed countries—those with higher GNIs, better infrastructure, more stable governance, and more advanced markets. Political instability slows down the advancement of financial inclusion because it disrupts ordinary market activity, macroeconomic growth, governance and general social life. It sometimes also prevents international organisations from operating, as we see in the case of South Sudan.

While there is room for improvement in financial inclusion across the EAC, it has the potential to have the most impact in the poorer countries. How do we ensure that financial services are reaching the people who need them most? How do we achieve financial inclusion in underdeveloped markets, and where instability is the norm? And to what extent can regional cooperation help advance financial inclusion across the EAC?

The first step in answering these questions is to map the financial inclusion landscape in the region as a whole and the major players who operate across the region. We also need an understanding of the regulation in each of the six countries and at a regional level. Based on this analysis, we can then begin to identify the gaps in service provision and ways in which working solutions may be scaled up across the region.

In this report, we map out financial inclusion in the EAC using data we collected from hundreds of sources for all six EAC countries (see Methodology). We identify:

• The financial inclusion initiatives taking place across the region in the areas: Advisory, Advocacy & Coordination, Capacity Building, Products & Innovation, Financial Literacy, Financial Sector Development, Funding & Investment, Infrastructure, Market Development, Payments Interoperability, Policy, Regulation & Supervision, Regional Integration, Social & Consumer Protection and Strategy

• The role of government in this landscape in developing and implementing National Financial Inclusion Strategies, policies and regulation

• The extent to which three key populations are covered by financial inclusion: women, smallholders and MSMEs

• Market maturity and its potential to advance financial inclusion in each EAC Member State

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 9 First, we present a brief country comparison. Second, we delve deeper into the stakeholders providing products and programmes relevant to financial inclusion at the country and regional levels. Third, we use network maps to discuss the extent to which financial inclusion initiatives address particular populations in need: women, smallholders and micro, small and medium enterprises (MSMEs). Fourth, drawing on the network maps, we discuss market maturity and its role in financial inclusion. Finally, we suggest a path forward for advancing financial inclusion in the region in a way that takes advantage of the lessons learned in each country.

Figure 1: Key facts about the EAC. Compilation of sources.

10 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT COUNTRY COMPARISON

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 11 12 Figure 2. Key indicators for the EAC countries. Source: FinTechStage, based on data from the CIA Factbook.

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 13 The six EAC countries represent a diverse social, cultural, and economic landscape, and are at notably different stages of development. This presents challenges for scaling financial inclusion in the region, since products and programs suitable for one country may not be applicable in another.

To a certain extent, the region shares historical commonalities. All were colonised by European nations and achieved independence in the late 1950s and early 1960s, although South Sudan split off from Sudan only in 2011, after decades of civil war. English is an official language in all six countries. Swahili is an official language in four of the six (Kenya, Tanzania, Uganda and Rwanda). French is present in Rwanda and Burundi. Additionally, there are dozens of indigenous African languages (60+ recognised languages in South Sudanv).

However, the region’s diversity has been a cause of ongoing unrest, with civil war and dictatorial rule causing deaths, precipitating refugee crises, and disrupting development. Unrest affects all countries in the region, not just the ones experiencing conflict. For example, Kenya is the second-largest host of refugees in Africa, primarily from internally displaced populations due to conflict and insecurity in neighbouring countries.vi

The region’s countries also differ in terms of economic development. Whereas Kenya has the highest GNI in the region (Figure 3), Tanzania has one of the fastest-growing economies in sub-Saharan Africa (SSA), averaging 6.9% annual Gross Domestic Product (GDP) growth from 2016-2018. However, agriculture is an important industry in all countries, with employment in agriculture ranging from 57% in Kenya to 91.5% in Burundi.viii

Figure 3: Key indicators in the EACix. Data source: EAC website, https://www.eac.int/overview-of-eac

14 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT Financial inclusion in the EAC needs to be understood within this context of instability and economic development. Figure 2 shows that Kenya, with the highest GNI per capita in the region, also leads the way on financial inclusion, with 82% of people aged 15+ owning an account. Burundi and South Sudan have the lowest GNI per capita and also the lowest rates of account ownership.

The impact of mobile money in the region has been highly uneven. In Kenya, a staggering 60% of Kenya’s GDP is estimated to move through mobile money.xAt the other end of the spectrum, mobile money was only launched in South Sudan in 2019. In 2017, fewer than one in four of South Sudan’s population owned a mobile phone, making mobile money services effectively unviablexi. Due to the lack of demand, some telecommunications companies disinvested; MTN abandoned its plans to expand services in 2016 and the government suspended Vivacell’s license in 2018 due to regulatory and fiscal issuesxii. However, in 2019, NilePay launched South Sudan’s first mobile money service when it partnered with Zain to create NilePay Mobile Money. It was followed soon after by MTN with MTN Mobile Money.

Uganda, Tanzania and Rwanda have all experienced relative success with mobile money services; however, it is questionable whether they have significantly altered people’s financial practices. In Uganda, for example, the introduction of mobile money does not seem to have significantly altered people’s dependence on informal financial services. There is a low demand for formal savings and investment products and services, although the percentage of Ugandans reportedly engaging in savings has increased. FSD Uganda estimates that “more than half of the banked population (63%) also use informal services, casting doubt as to whether banking services are relevant and adequate for many Ugandans”xiii. Informal savings methods are utilized more than formal banking, making fostering a “savings culture” an interest of government financial inclusion strategies and institutionsxiv.

Reasons for not using financial services differ across the region. Importantly, however, Global Findex 2017 data show that the number of people who reported not having a financial institution account because they do not need one is negligible. Reasons for not owning an account included cost, distance, documentation, trust, using a family member’s account, or religious reasons. These reasons are all well known.

However, by far the main reason for not having an account is insufficient funds (not having enough money to need an account) (Figure 4). Improving this factor requires both increasing people’s incomes and increasing the digitisation of payments, such as G2P payments, salary payments and cash transfers.

In some cases, it may also require changing people’s perceptions of the value of accounts. If people believe there is a minimum amount required for an account they may not use it. However, if accounts are free and easy to access, as are many mobile money wallets, then it can be worthwhile (and safer) to store money there.

The challenge then becomes convincing consumers to leave their money in their accounts rather than withdraw their total balance as cash. This is why the success of mobile money is dependent on creating an entire ‘scaled’ ecosystem in which recipients can make payments both horizontally (peer to peer) and vertically (along value chains).

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 15 Figure 4. Reasons for not owning an account in the EAC, by country. Source: Global Findex 2017. No data were available for Burundi.

Figure 5. Ability to raise emergency funds, poorest 40% and the richest 60%. Source: Global Findex 2017 for all countries except Burundi (2014).

16 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT Another important financial inclusion issue is access to emergency funds. Can people raise money when they need it most? How? There is a substantial difference across the region in the ability of the poorest 40% to raise emergency funds (Figure 5). Whereas 33% of the poorest Kenyans say they can raise emergency funds, just 12% say they can achieve this in South Sudan. In all six countries, the main source of emergency funds is ‘friends or family’, followed by the sale of assets, savings, and loans from a bank, employer or private lender.

Figure 6. Methods for raising emergency funds, poorest 40% and the richest 60%. Source: Global Findex 2017 for all countries except Burundi (2014).

There are significant differences in methods for raising emergency funds across the countries (Figure 6). In Burundi, 45% of respondents stated that their main source of emergency funds is ‘family or friends’; in Tanzania, this figure drops to 16%. In South Sudan, just 2% say their main source is a bank, employer or private lender, and the highest figure for the region is only 8% in Kenya.

Similar comparisons could be made for accessing credit for investment purposes, using savings accounts, and so on. We highlight emergency funds because it is arguably the most important kind of financial service for people who are poor. Being able to pay for a medical emergency can be a matter of life and death. Rebuilding after a natural disaster, being able to buy food, and the ability to travel to care for family members in need are also emergencies that greatly affect the well-being of the world’s poorest people. But there are few financial services that fill this niche.

In the following section, we look deeper into the stakeholders serving financial inclusion ends in the EAC.

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 17 Figure 7. MTN and Airtel Money mobile money agent on the edge of Kampala, Uganda. Source: Fiona Graham/WorldRemit, Flickr.

The Human Perspective: The Social Nature of Money Financial services often have applications that are not widely discussed in financial inclusion conversations. Among people who are poor, financial services can contribute to much-needed ‘social capital’. For example, in Uganda, mobile money has been found to widen ties of mutual aid and solidarity across greater distances and with more speedxv.

Similarly, in Western Kenya, people use mobile money as a social tool to create and maintain relationships by sending gifts of money and airtime to friends and relatives, organizing savings groups, and contributing to ceremonies and ritualsxvi. These gifts are often accompanied by a follow-up phone call from the receiver, serving to reinforce the strength of the relationship between sender and receiver. Safaricom has even honed in on the social practice of airtime gifting within Kenya and by Kenyans living abroad, using their advertising campaigns to encourage them to send airtime to their family and friends. Indeed, the founding tagline of M-PESA was “Send Money Home”.

People also use financial services in ways that do not fit with ideas of individual ownership. To reduce costs, people often share mobile phones and SIM cards in creative and strategic waysxvii. These include purchasing multiple SIM cards in order to make use of free in-network calling and maximizing different reception rates in remote areas.

The process of “step messaging” is enacted when the receiver of a message or call understands that their role is to deliver the message on foot to its (not in-network) intended recipient. Placing intentionally missed calls (that are not charged by the service provider), or “flashes,” is another practice that minimizes fees incurred. It signals for the receiving party to return the call when they can afford to, a practice that also carries messages about social position and genderxviii.

18 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT Similarly, people share mobile money accounts and collect money transfers on behalf of others. The assumption that every account is used by one individual person is incorrect. If we measure access in terms of the number of accounts, we are most certainly underestimating the number of people who have access to mobile money services.

An exception to shared use has been noted among Tanzanian university students, who think of cell phones as individually owned private property, a social symbol of independence, and an indicator of “a lifestyle associated with successful navigation of modernity”ix. Their relative privileged status in terms of literacy, reliable electricity access, facility with the Internet, and perhaps also English proficiency should be noted. Privacy and secrecy are also factors, as family and friends may not know when remittances are received.

On the other hand, mobile phones can raise new issues. Collecting microcredit repayments through mobile money can lower the repayment rate. Because the loan collectors no longer interact physically with the borrowers in the context of the repayment of digital loans, there is less social pressure to repay, so repayment rates go down. Additionally, as we discuss later in this report, mobile phones can cause problems with over-indebtedness, gambling, and fraud.

Many interventions fail because they do not recognise, or adjust to, this complexity. While the broad issues are similar, an implementation must take account of local contexts, needs, preferences, and values.

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 19 FINANCIAL SERVICE PROVIDERS AND PROGRAMMES

20 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT Major Regional Players The trend of increasing integration in Africa bodes well for improved collaboration and sharing financial inclusion initiatives. Founded in 2000, the EAC has the potential to play an important role in establishing the foundations for financial inclusion across the region; for example, harmonisation of legislation across the region, deploying a regional biometric identification system, or supporting successful initiatives to expand across the region. It has established a customs union and a common market, and is working towards a monetary union and political federation. Similarly, there are several important companies—banks, mobile network operators (MMOs), mobile money operators (MNOs), and not-for-profit/international organisations—that are influential in the region.

However, the overall number of organisations or companies that have an active presence across the entire EAC region are relatively few. Out of nearly 1,000 organisations (excluding SACCOS)xx, we identified just 21 that are present in at least five EAC countries, and only 11 organisations are present in all six countries.xxi Of course, presence does not necessarily equal influence: while there are relatively few MNOs and MMOs, they play a critical role in financial inclusion.

At the most general level, the EAC Government plays an important role in establishing the foundations for financial inclusion across the region. As with Africa as a whole, the EAC is working towards greater integration. It has established a customs union and a common market, and is working towards a monetary union and political federation.

TheEast African Monetary Union (EAMU) is an important step in this process. Signed on the 30th November 2013, the agreement lays the groundwork for the development of a monetary union within 10 years. It will permit the six EAC countries to converge their currencies into a single currency. Such a move towards integration also bodes well for the development of an interoperable transaction landscape in the region.

EAMU builds on work already carried out to develop interoperable payments systems and can help to increase the volume of transactions in the system and thereby bring down costs. To combat the high costs and the slow nature of transactions, the central banks of Kenya, Tanzania and Uganda came together to develop the East Africa Payments System (EAPS). This multi-currency system links the Real Time Gross Settlement Systems (RTGS) of the EAC member countries. It began operating in March 2018, and Rwanda and Burundi are also expected to come on board.

In July 2019, the African Development Bank (ADB) approved USD6.6 million funding for South Sudan’s payment and settlement systems integration project.xxii The project will help South Sudan to harmonise its payment systems in line with those of the other EAC member countries, thus working towards the development of a monetary union and increasing economic activities across the region.

International organisations are involved in many different areas of financial inclusion, either as funders or implementers. They deliver around 20% of the region’s financial inclusion programmes in Kenya, Tanzania, Uganda and Rwanda, 14% in Burundi and 5% in South Sudan. However, not a single international organisation has a true on-the-ground presence in all six EAC countries.xxiii Some do serve the entire region indirectly, either through funding (e.g. the Gates Foundation) or research (e.g. World Bank Group). For example, Accion International’s Center for Financial Inclusion runs an Africa Board Fellowship Program to carry out learning and exchange with board members and CEOs to strengthen the governance of financial institutions serving low-income clients.

Four banking groups have a presence in five or six EAC countries: Ecobank Transnational Incorporated, Equity Bank Group, KCB Group and Bank of Africa. Two of these have a pan-African presence: Ecobank Transnational Incorporated has operations in 36 African countries across eastern, central and western Africa; Bank of Africa is present in 16 countries, primarily in eastern and western Africa. Two of these banks can be

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 21 considered ‘local’ to the EAC. Equity Bank Group is present in all EAC countries except Burundi, plus the Democratic Republic of Congo. KCB Group, headquartered in Kenya, operates exclusively in the six EAC countries.

Other important banks include the Commercial Bank of Africa and Guaranty Trust Bank (each in four EAC countries). Several more banks are present in three EAC countries: the Bank of India, Barclays Bank, Citibank, Diamond Trust Bank, I&M Bank, NIC Bank, Standard Chartered Bank, Stanbic Bank, and United Bank for Africa.

While banks are not the main players in financial inclusion, they are an important part of a healthy financial ecosystem and do provide some useful financial inclusion initiatives. We discuss some of these later in this report.

Figure 8. Mobile network operators in the EAC. Source: FinTechStage.

Despite their low numbers, the most important organisations for financial inclusion are the region’s MNOs and MMOs. These provide the critical infrastructure (the ‘rails’) for financial service provision, as well as the most accessible financial services to date. They share strategies and product offerings across countries and cross-subsidise their local operations, giving them a significant advantage over other financial services. Most importantly, they are critical to the provision of interoperable mobile wallets.

The major MNOs in the EAC are: • Bharti Airtel - Kenya, Tanzania, Uganda and Rwanda • MTN Group - Uganda, Rwanda and South Sudan • Vodacom - Kenya, Tanzania and Rwanda • Viettel Group - Tanzania and Burundi

The major MMOs in the EAC are: • Airtel Money - Kenya, Uganda, Tanzania and Rwanda • M-Pesa - Kenya and Tanzania • MobiKash - Kenya and Burundi • MTN Mobile Money - Uganda and Rwanda • M-Cash (MobiCash) - Uganda and Rwanda

22 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT In terms of presence in multiple countries, money transfer operators (MTOs) serve the region most broadly. This is not surprising since money transfer is generally the first kind of financial service to fill the gap left by banking services. However, many of these are online money transfer companies, which are not ideal providers of ‘services for the poor’.

We identified 132 microfinance institutions operating in the EAC. Uganda is host to just over a quarter of the region’s microfinance institutions (35). Burundi has 22 MFIs, which is the largest number relative to the total national population. South Sudan has just three MFIs. The MFIs present in the greatest number of EAC countries are: • Present in four EAC countries: ASA International, Opportunity International, Victoria Finance, Women’s Microfinance Initiative

• Present in three EAC countries: BRAC, Letshego, Platinum Credit, Stromme Microfinance East Africa

The activity of fintech companies is somewhat more difficult to measure. We found just two fintechs that explicitly serve most EAC countries: WeCashUP and Pula. However, many fintechs offer products and services that can be readily adapted to foreign markets. We, therefore, expect that the actual distribution of fintechs across the EAC is stronger than depicted in our data.

Overall, the region is dominated by banks, MNOs, MMOs and money transfer companies. NGOs and fintechs have a weaker presence. In many ways, the weak distribution of stakeholders across the region makes sense, since particular markets require products and services tailored to them, and operating in South Sudan is challenging. However, the fact that most financial inclusion efforts are highly local makes it difficult to harness their successes across the region.

Further research is needed to 1) understand the extent to which local initiatives share knowledge, and how this impacts financial inclusion; 2) assess the real impact of cross-border initiatives on financial inclusion; e.g., does the presence of large, multi-country providers and the potential of significant numbers of cross-border transactions significantly improve financial inclusion?; and 3) from these findings, identify ways in which regional cooperation can assist in ‘scaling’ financial inclusion and extending its benefits to the region’s poorest people.

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 23 Figure 9. Fintechs in the EAC. Source: FinTechStage.

24 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT Mobile Money Operators

Figure 10. Mobile money operators in the EAC. Source: FinTechStage.

Domestic consumer transactions in the EAC are dominated by mobile money services. Within the EAC there are 27 live mobile money services. As of December 2017, there were a total of 91.8 million total users across Kenya, Uganda, Rwanda and Tanzania, with a transaction value of USD$8.19 billion. xxiv

Although there is substantial diversity in terms of the number of MMOs operating in EAC countries, generally one or two providers dominate the market: xxv

• In Kenya, the largest MMO is M-Pesa, with 63.3% market share; Airtel Kenya holds a 23.4% market sharexxvi

• In Tanzania market share of MMOs is: Vodacom M-Pesa (41% market share), Tigo Pesa (30%), Airtel Money (18%), Halotel Money (7%), EzyPesa (2%), and TTCL (2%)xxvii

• In Uganda, MTN and Airtel together command around 90% of the market, splitting it fairly evenly between them

• The picture in Rwanda is similar to Uganda, with MTN and Airtel dominating the market

• In Burundi, there are three MMOs: EcoCash, Smart Pesa and Lumicash

• In the Republic of South Sudan, three mobile money services went live in the second half of 2019: m-Gurush, NilePay and MTN Mobile Money. Data on users and transactional volume and value are not yet available

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 25 These figures indicate that there may be a competition issue in regards to access to (i) telecommunications infrastructure and (ii) monopolisation of mobile money. In each country, there are two dominant players and several smaller players (except South Sudan). However, opinions vary as to how much competition is viable in the mobile money space. On the one hand, competition is beneficial to consumers as it drives down prices and drives up the quality and variation of service provision. On the other hand, for mobile money to be commercially viable, it requires large volumes of transactions.

A more critical issue is the extent to which mobile money serves the poorest segments of a given population. Figure 11 shows the extent to which mobile money serves the poorest 40% of the population in Kenya, Tanzania, Uganda and Rwanda. In each country, there is a substantial gap between access by the richest 60% and the poorest 40%. The gap between these two groups is 27% in Rwanda, 23% in Kenya, 18% in Uganda and 14% in Tanzania. While the poorest 40% certainly use mobile money more than they use other financial services, the typical mobile money user is not among the poorest members of society.

Figure 11. Percentage of poorest 40% and the richest 60% with a mobile money account in the EAC, by country. Data are not available for Burundi or South Sudan. Source: Global Findex 2017 (Burundi 2014).

Figure 12. Financial inclusion in the EAC. Data are from the World Bank’s Global Findex. For all countries the data is from 2017, data from 2014 are marked with an asterisk.

26 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT There are also substantial differences across EAC countries with respect to how people use mobile money. Figure 12 shows that people in Kenya and Uganda more frequently pay school fees via a mobile phone. Paying utility bills using a mobile phone also occurs most often in Kenya, followed by Tanzania, Uganda and Rwanda. Kenyans also use their mobile phones more frequently to receive their wages and send or receive domestic remittances. When it comes to receiving payments for agricultural products, Ugandans are the most likely to use a mobile phone, followed closely by Kenya.

Mobile money still exhibits low levels of interoperability across the region, but this is beginning to change. The state of domestic interoperability differs between EAC countries. In 2015, Tanzania introduced account- to-account interoperability across all networks, becoming the first African country to do so. Currently, interoperability only works for P2P transactions, but there are plans to extend the service to P2B.

In Kenya, mobile money interoperability began in 2018, with Safaricom and Airtel rolling out a common mobile wallet. T-Kash joined the scheme later. However, the scheme has run into teething problems. In one incident, M-Pesa users were charged four times more to send money to Airtel users than to other M-Pesa subscribers.xxviii Such a difference in price may serve as a major disincentive for users to send money between services, thus undermining the value and intention of interoperability. The Kenyan government has announced plans to develop its own common wallet, which may potentially replace the wallet developed by Safaricom, Airtel and T-Kash.

The Bank of Uganda directed MMOs to work towards interoperability in 2017, and it came into effect at the end of 2018, albeit to a limited degree. MTN Mobile Money customers can now send to and receive money from users of Airtel Money, Africell Money and M-Sente.

Given high levels of human mobility in the region, as well as the economic importance of remittances, it is also critical that mobile systems are also internationally interoperable. According to the World Bank, remittances to sub-Saharan Africa grew to USD37.8 billion in 2017 and are forecast to reach around USD39.6 billion in 2019.xxix As impressive as this number may sound, the high cost of remittances to Africa and within Africa through money transfer operators is estimated to cost the continent billions of dollars annually. Mobile money and other digital solutions have the potential to bridge this gap.

With respect to international interoperability, MTN Uganda permits its mobile money users to send money to MTN Rwanda and Safaricom M-PESA, with Tanzania to be onboarded in the future. There is currently no interoperability of mobile money services in Rwanda or Burundi. However, Airtel Rwanda, MTN, and Tigo Rwanda are seeking the regulator’s approval to roll out the service.

Recently Safaricom partnered with Western Union to develop a new service, M-Pesa Globalxxx Users will be able to send money to mobile money users in Rwanda, Tanzania and Uganda, or transfer money from M-Pesa directly to bank accounts in the United Arab Emirates, the United Kingdom and Germany. The new service includes PayPal integration, allowing customers to transfer from M-Pesa to PayPal and withdraw from their PayPal accounts to M-Pesa. Tariffs will range from USD1 to send up to USD50, to USD5 to send up to USD700. We can expect to see further MMOs developing cross-border remittance services, both within the EAC and in Africa more broadly, regulations notwithstanding.

A more recent development in international interoperability within the EAC is the ‘Switch of Switches’ initiative, in which switches of four countries (Kenya, Rwanda, Tanzania, and Uganda) have already integrated and are in the testing phase. The three first agreed steps were to:

• Allow the switches to interoperate and enable basic ATM transactions and balance inquiries on each one of the switches (cash-out transactions);

• Enable intercountry remittances and cardless withdrawals at ATM (remittances at the respective agent networks); and

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 27 • Get support from regional banks

The group have set up multifunctional teams comprised of people with representation from each switch and country:

• Technology teams will take care of the integration

• Legal teams will look at risk and compliance

• Operations teams are tasked with dispute management

• An additional team will focus on the commercial side of the project

As soon as the team achieves success with enabling basic ATM transactions, they will start adding more complex non-bank products.

Banks and Microfinance Institutions Banks and MFIs have quite different histories, target markets, and methods of operation. However, it is difficult to measure their separate impact on financial inclusion due to a lack of data. The most comprehensive source of financial inclusion statistics, the Global Findex Database 2017, does not include separate measurements on these two types of institutions. Instead, its questions on the use of financial institutions lump together accounts held at banks, MFIs, credit unions, and a few other institutions.xxxi

Moreover, banks often partner with microfinance agencies to offer services to low-income clients. For example, CRDB, one of the largest banks in Tanzania, partners with 450 microfinance institutions to extend its customer offerings. CRDB Microfinance offers financial products and services such as originating and managing loans, as well as the mobilization of deposits from its partner MFIs. It also offers information and communication technology solutions and support to its customers.

Even where separate data exists, there is no breakdown by type of service offered (e.g. credit or savings) or population. According to FSD Kenya, for example, in 2019 just 400,000 people used MFIs, while 2.8 million used SACCOS, 10.2 million used banks and 19.9 used mobile money.xxxii Thus it is difficult to conclude the contribution of banks and MFIs to financial inclusion based on available data.

According to Global Findex 2017 data, financial institutions in the EAC—including banks, MFIs, and others— do not tend to serve the poorest people. As shown in Figure 13, the gap in financial institution account ownership between the wealthiest 60% and the poorest 40% is 31% in Kenya, 13% in Tanzania, 15% in Uganda, 11% in Rwanda, 10% in Burundi and 8% in South Sudan. Note that in Burundi just 11% of the wealthiest 60% of the population have a financial institution account, and just 1% of the poorest 40% have an account. In South Sudan, these figures are similar, at 12% and 4%.

Interestingly, in Tanzania, the income gap in financial institution account ownership is virtually identical to the income gap for mobile money account ownership. In Kenya, the figure is higher for financial institutions (31% compared to 23% for mobile money). In Rwanda, however, the income gap in financial institution ownership is smaller than for mobile money (11% versus 27%).

28 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT Figure 13. Percentage of poorest 40% and the richest 60% with an account at a financial institution in the EAC, by country. Source: Global Findex 2017 (Burundi 2014).

In terms of the number of banks, Kenya and Tanzania have a similarly sized share of the region’s banks (30% and 26%), with coverage dropping off somewhat for Uganda (17%), then sharply for Rwanda, Burundi and South Sudan (9% each). Adjusted for population,xxxiii Rwanda comes out in the lead with roughly 6 branches for every 100,000 people, while in Kenya there are around 5.2 branches for every 100,000 people. South Sudan fares worse, with 1.3 branches per 100,000 people. In comparison, in the USA in 2017 there were 31.46 branches per 100,000 people.

Figure 14. Banks per 100,000 adults in the EAC. Source: FinTechStage.

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 29 Figure 15: Number of MFIs in each EAC country. Source: FinTechStage.

We identified 132 microfinance institutions operating in the EAC. Uganda is host to just over a quarter of the region’s microfinance institutions (35). Burundi has 22 MFIs, which is the largest number relative to the total national population. These countries all have long-standing microfinance ecosystems. The majority of MFIs focus on low-income populations and MSMEs in general, although some do specialise in women and smallholders.

However, as Africans increasingly acquire smartphones (often on credit) they can reach new digital credit providers. In response, some MFIs are developing their own niche services or partnering with providers of consumer goods to extend credit. These include pay-as-you-go (PAYGo) solar home financing. In their Focus Note on the topic, CGAP points out these partnerships or ventures work for MFIs because deposit-taking MFIS are more tightly regulated than PAYGo providers, and PAYGo providers reach consumers at the point of sale. In turn, MFIs can offer products that PAYGo providers cannot. By working together they can provide consumers with a greater range of services that better suits the consumers’ consumption patterns.

South Sudan presents a different picture. It has just three organisations offering microfinance: The Rural Finance Initiative (RUFI), Manna Microfinance and Five Talents. RUFI is an MFI that focuses on smallholders. It was founded in South Sudan in 2008, and extended operations to Uganda in 2017. Manna Microfinance is offered by Anglican International Development, a not-for-profit organisation founded in South Sudan in 2008. They now also work in Uganda and Kenya. They run a range of development programmes including church strengthening, healthcare, agriculture and sanitation, as well as microfinance.

Five Talents is a not-for-profit organisation, based in Vienna, that works in over 20 countries around the world. It began operations in South Sudan in 2007, focusing on microfinance. Five Talents claims that its programmes “have a broader reach and impact in South Sudan than the microfinance institutions supported by the United Nations, World Bank, European Commission, USAID, Central Bank, and Government of South Sudan combined.”xxxv Certainly it appears that, in South Sudan, the organisations that are most resilient to conflict are the ones that were founded in South Sudan or which are religiously affiliated. Local knowledge and connections are critical to the ability to keep operations moving in a volatile political environment.

30 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT Bank activities for socio-economic development in the EAC

The region’s largest banks offer some initiatives that specifically aim to increase financial inclusion.

Ecobank’s operates in all six EAC countries, offering a standard suite of services in each. Ecobank’s offerings include a strong microfinance initiative, serving 1.5 million small income individuals and microentrepreneurs across their pan-African network, and another 2 million low-income individuals through their support of other microfinance institutions.xxxvi

Equity Bank Group, through their Equity Group Foundation, supports Africans (youth, women and entrepreneurs) by providing “the finest education and career opportunities.” The Equity Group Foundation has supported 16,000 students by providing them access to secondary and tertiary education. It has provided mentorship and training to over 43,000 MSMEs, and has supported 640,000 small-scale peasant farmers transforming them into agribusiness entrepreneurs.xxxvii

KCB Group, also through their foundation, helps youth and other disadvantaged communities with their flagship programmes: 2Jiajiri, Mifugo Ni Mali and KCB Scholarships. The 2Jiajiri programme run by KCB aims to “empower and equip unemployed and out-of-school youths to grow micro-enterprises.” The objective of the Migufo Ni Mali programme is “to reduce extreme poverty by increasing income for communities through training, mentorship and provision of business development grants.” Last but not least, their KCB Scholarships programme aims to “improve access and quality of education for needy students through the provision of scholarships, learning materials and improved public school infrastructure.” xxxviii

Bank of Africa is in its second three-year development plan in Tanzania, where the Bank “intends to introduce an innovative platform which will be used to deliver services closer to the customer in a very efficient and friendly manner. This new platform will simplify the use of mobile banking, agency banking and internet banking.”xxxix

Stanbic Bank in Uganda has produced radio shows for entrepreneurs and individuals aimed at increasing financial literacy. These include ‘Better Business’, ‘More Lebotha’ and ‘Better Your Lebotha’.xl They have previously carried out several financial-literacy focused workshops, and they have also been involved in the development and dissemination of financial literacy modules for young academics.

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 31 Not-for-Profit and International Organisations

Figure 16. NGOs offering financial inclusion programmes in the EAC, by country. Source: FinTechStage.

We identified 132 not-for-profit and international organisations implementing financial inclusion projects in the EAC (around 10% of the total number of organisations, excluding SACCOS). The number of organisations focusing on financial inclusion is fairly similar across the region (20-30 initiatives in each country), except in South Sudan.

With the exception of Mamma Microfinance, which we covered in the previous section), we did not find a single not-for-profit or international organisation implementing a financial inclusion programme working directly with beneficiaries (e.g. consumers, businesses) in South Sudan.xli Some programmes come close to qualifying; for example, Cordaid runs a programme for agribusiness development, which works with women to help them become entrepreneurs, but their programme description makes no mention of financial services.

There are also several cash grant programmes in the region (e.g. Action Africa Help International, International Rescue Committee). Additionally, Acción International’s Africa Board Fellowships are available to South Sudanese board members and CEOs. Nor are there many not-for-profits organisations operating in South Sudan that could fill this gap. It seems more likely that South Sudan’s new mobile money services will come to dominate the provision of financial services to the poor.

Elsewhere in the EAC, around half of financial inclusion programmes focus on the provision of financial services to the poor or supporting access to such services. The majority of these focus on access to credit by individuals and MSMEs. A smaller portion concentrates on savings products specifically. Few offer insurance products. Within this group, several organisations play a supporting role to improve access to financial services. These include:

• K-Rep Development Agency (Kenya), which researches and develops new microfinance products and services for low-income people in Kenya, and works to institutionalize those that prove to be commercially viable

• The International Fund for Agricultural Development (IFAD) invests in rural finance in Uganda and Burundi

• The United Nations Capital Development Fund (UNCDF) works with public financial management, SME development, and financial services development in Uganda

32 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT Beyond the provision of financial services, there are a handful of issues that consistently emerge as being key to progress. Infrastructure and interoperability, market development and regulation, and capacitation are critical foundations for financial inclusion. Consumer and social protection come into play once financial services are in place to ensure that the value of financial services to the poor is not undermined by negative effects, such as indebtedness, fraud or privacy issues.

There are approximately 17 programmesxlii that focus on capacity building for entrepreneurs and MSMEs, and these programs often include a component focusing on access to financial services as well. There are a further 16 programmes focusing on market development, especially access to value chains and integration of digital financial services and trading platforms. With respect to financial sector development, the region’s FSDs, the Aga Khan Foundation and the International Finance Corporation work extensively in multiple EAC countries. There are also a handful of specific programmes on financial literacy, infrastructure and policy.

Several of the initiatives we identified involve not-for-profit organisations working in collaboration with governments to implement financial inclusion programmes. These include:

• Innovations for Poverty Action assists the Kenyan government to implement Vision 2020

• The Alliance for Financial Inclusion’s African Financial Inclusion Policy Initiative brings together high- level representatives from African financial policy-making and regulatory institutions to promote sound and effective financial inclusion policies and establishing a platform for public and private engagement

• The UN Capital Development Fund supports the Ugandan Government to create a functional planning and financial system for sustainable and inclusive local development, using its financial tools and technical expertise in public financial management, SME development, and financial services development to do so

It is hard to assess the role of not-for-profit and international organisations in the EAC overall, given that they comprise a relatively small group of stakeholders compared with the overall landscape and often provide services similar to those of local companies (especially microfinance). Generally speaking, not-for-profits and international organisations have several points of differentiation and advantages:

1. International organisations especially provide critical funding, topical expertise, and implementation support

2. The ways in which not-for-profits deliver financial services tends to differ from companies, since they are more likely to package these services in with other development goals (e.g. food security, income capacitation, financial literacy, etc.), which makes positive development outcomes more likely

3. This makes partnerships with commercial partners excellent value propositions, since it increases the reach of the not-for-profits and means that commercial partners can benefit from not-for-profits’ greater capacity to address development holistically

Within the EAC we can see these advantages in operation. Multilateral partnerships are commonplace and these provide ample opportunities for knowledge-sharing and developing mutually viable valuable propositions that benefit the end-users. However, as we describe later in this report, not-for-profit and international organisations could play a stronger role in serving specific groups, including the poorest segments of the population, women, smallholders and MSMEs.

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 33 Figure 17. Major not-for-profit and international organisations with financial inclusion programmes in the EAC. Source: FinTechStage.

34 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT Money Transfer Operators

Number of money transfer companies

Figure 18: Number of money transfer operators in each EAC country. Source: FinTechStage.

Money transfer operators (MTOs) have long played a critical role in financial inclusion because of their role in delivering remittances. According to Knomad (Figure 19), Kenya and Uganda received by far the highest amount of remittances in 2017 compared with other EAC countries.

Figure 19: Remittances in the EAC. Figures not available for South Sudan. Source: KNOMAD, https://www.knomad.org/data/remittances

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 35 The numbers of MTOs present reflects the distribution of incoming remittances. We identified 40 money transfer companies in Kenya, 36 in Uganda, 29 in Tanzania, 27 in Rwanda, 17 in Burundi and 10 in South Sudan.

Three MTOs offer money transfers to all six EAC countries: MoneyGram, Small World, Western Union. A further seven serve five EAC countries (all excluding South Sudan): Azimo, Globalwebpay, MuheCash, RIA Money Transfer, Rocket Remit, WorldRemit and Xoom. This cross-regional presence is potentially important as it facilitates regional remittances. The only regional company of this group is Burundian Muhecash, which also has offices in Uganda and Rwanda. The rest are based outside of Africa.

Small World, Western Union, Azimo, WorldRemit and Burundian company Muhecash permit recipients to receive their money via mobile wallet, bank deposit and cash pick-up. Azimo and WorldRemit also offer airtime top-up. One exception is Rocket Remit, which only works through mobile money transfers from phone to phone.

Remittances matter for increasing the incomes of poor people, and when they are received digitally (such as to mobile money accounts) they can help financial inclusion by lowering the security risks associated with cash and increasing people’s usage of digital wallets. However, they are just one small part of a financial ecosystem suitable for the lives of the poor, and their dominance suggests a less mature ecosystem (see Ecosystem Maturity).

Fintech Companies As more and more people shift to using digital financial services, fintech companies are set to play a major role in facilitating financial inclusion. ‘Fintechs’ can be defined as companies or organisations that provide technology solutions for a range of financial management and transaction purposes. These include products for both organisations/businesses and consumers; for example, point-of-sale solutions, money management apps, robo-advice for investments, credit scoring, and more.

Fintech solutions contribute to financial inclusion in several ways:

1. Providing the technological infrastructure that financial services providers need to operate.

2. Contributing improvements to existing financial products, such as better mobile money interfaces or an add-on service to purchase insurance.

3. Developing new financial products for individuals and businesses, especially for niche groups or use cases.

4. Creating competition, which can result in better services at lower prices.

In particular, fintech companies excel in making digital services more accessible, cheaper, more functional, and simpler to use. By creating intuitive interfaces and offering simplified or niche financial services, fintech companies lower the bar for people to learn to use financial tools. As such, they can help to overcome issues of digital literacy as well as financial literacy. Moreover, they can assist in building customer creditworthiness and connections-based finance for people with low incomes, and assist in the delivery of location-based finance to smallholders.xliii

In Africa, fintech companies have already developed a range of financial tools that contribute to financial inclusion. These include technological solutions for both ordinary mobile phones and smartphones, Point of Sale (POS) devices, back-end payments solutions, as well as solutions for interoperability.

According to an FSD Uganda report, over 40% of African fintechs operate in the payments and remittances space, and 20% provide services in lending and financing.xliv The remaining 40% are scattered throughout services such as investment, savings, banking infrastructure, and markets.

36 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT On a global scale, the African fintech ecosystem is relatively small, but it is growing fast. The continent is seeing an increase in the number of fintech start-ups emerging. While larger, more mature technology companies have long provided support to financial institutions, it is the fintech start-ups that tend to come up with new solutions. The state of the start-up ecosystem is, therefore, an indicator of innovation.

As outlined in a previous FinTechStage report, The State of Financial Inclusion in Africa: Obstacles and Opportunities, there are several vibrant and active fintech hubs throughout Africa. Our previous research indicates that the largest of these hubs is in Lagos, Nigeria, which has approximately 79 fintech companies. Kenya has around 66 fintech start-ups.xlv South Africa puts in a strong presence, with 53 start-ups in Cape Town and 46 in Johannesburg.

Fintech is also attracting a substantial amount of funding relative to other sectors. FSD Uganda reports that venture capitalists had funded over 150 deals and invested over USD100 million in fintechs in Africa by December 2017. Biz Community reported that in 2017 fintech start-ups raised almost a third of total funding on the African continent.xlvi

Figure 20. Number of fintechs per EAC country. Source: FinTechStage.

Within the EAC, the fintech scene is strongest in Kenya by a considerable margin. It is home to a full 41% of the region’s fintech companies. Out of the 66 fintech companies present in the Kenyan market, 22 of them are also present in other EAC member countries. As more fintechs enter the scene, there is the potential of servicing niche markets previously excluded.

Although fintech is not always synonymous with financial inclusion, many of the emerging fintech in the EAC region have a financial inclusion angle within them. For example, the goal of Uganda-based Numida Technologies is “to unlock financing for the 22 million African small businesses that need it.” They attempt to do so by addressing the credit issue MSMEs faces. The Numida team has developed a “simple record-keeping mobile app, that allows businesses to build financial track records, enables them to make better business decisions and prove their creditworthiness to potential lenders.” xlvii

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 37 In Kenya, another startup, Kopo Kopo, addresses MSME pain points. Kopo Kopo is enabling MSMEs to accept, process, and analyze mobile payments in real-time and engage their customers with highly targeted, market- appropriate promotional and loyalty tools.

Despite many fintechs striving for financial inclusion, there are some fintechs that actually create financial exclusion, such as by increasing indebtedness, promoting gambling, and facilitating fraud.xlviii This problem is not unique to fintech: the un- or under-regulated spread of microfinance created issues all around the world over the last few decades.xlix

Fintech has the (negative) potential to further increase indebtedness, since mobile money and smartphones allow consumers access to a greater number of lenders. One Kenyan commentator notes:

“More than 400,000 Kenyans are listed with the Credit Reference Bureaus for outstanding mobile loans of less than Sh 200 (USD1.98), underlining claims that banks have been misusing the credit information system. A survey by Transunion Credit Reference Bureau found that 316,455 in a group of 600,000 cases had been negatively listed for outstanding balances of less than Sh 100 (USD0.99) associated with mobile money.” l

As well as creating serious problems for individuals and households, indebtedness decreases access to further credit. If fintech is to benefit consumers then it needs to be sufficiently regulated and managed.

Savings and Credit Cooperative Societies (SACCOS) Savings and Credit Cooperative Societies (SACCOS) are user-owned financial intermediaries. They have many names around the world, including credit unions, SACCOS, COOPECs, and so on. Their principal services are savings and credit, although many offer money transfers, payment services, and insurance as well. Sometimes savings and credit cooperatives join together to form second-tier associations for the purposes of building capacity, liquidity management and refinancing.

While SACCOS serve relatively few people, they play an important social role because they are accessible to the poorest people—a critical feature for the success of a financial inclusion initiative. SACCOS’ members normally share a common community, occupation or place of work. Members may be residents of the same town, smallholder farmers of a specific crop, or employees within the same company. Members have equal voting rights, regardless of how many shares they own.

The inclusive nature of SACCOS has allowed them to proliferate in the developing world. According to the World Council of Credit Unions Statistical Report 2018, 46.19% of all SACCOS globally are found in Africa, compared to 38.65% in Asia. While leading the numbers in terms of SACCOS, the two continents lag in terms of penetration: the economically active population that are SACCOS members is 13.80% in Africa and 4.34% in Asia. Despite Africa having a total population of 3.2 billion fewer people than Asia, it only has 20 million fewer SACCOS members.

To cope with the number of SACCOS emerging in Africa, the African Confederation of Co-operative Savings and Credit Associations (ACCOSCA) was formed in 1968 by representatives of African National Association of Savings and Credit Unions, together with other African co-operative leaders. ACCOSCA operates as a non- government, non-political and Pan-Africa Confederation of National Associations for Savings and Credit Co- operative Movement, with the Secretariat based in Nairobi, Kenya.

38 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT Figure 21. SACCOS in the EAC. Note that the data are estimates. Source: World Council of Credit Unions, Statistical Report, 2018. (2019). https://www.woccu.org/ documents/2018_Statistical_Report

Figure 21 shows that there are substantial differences in the number of SACCOS and SACCOS members between the four countries depicted. Kenya and Tanzania have the greatest number of SACCOS, but Kenya has far more SACCOS members than Tanzania. In fact, there are more SACCOS members in Rwanda, even though there are relatively few SACCOS.

The membership composition also differs from country to country. In Kenya, SACCOS are largely divided by profession. Well-established SACCOS include the Kenya Bankers SACCOS Society and the Kenya Police SACCOS. Rwanda is an exception: instead of grouping members by profession, employer or type of crop, the government decided that the way to incentivize Rwandans to join SACCOS and graduate from chronic poverty was to create a SACCOS per ‘Umurenge’ or Administrative Sector. This is reflected clearly in the small number of SACCOS in Rwanda, their number of members and total penetration, in comparison to the other three countries. This accounts for the fact that Rwanda has few SACCOS but a large membership base.

Across the region, there is a move to digitise SACCOS to increase their efficiency and functionality, and to reach beyond local communities. As a result, many SACCOS are revising their bylaws to allow any individual to join the SACCOS they feel would best fit their needs. This growing trend of digitization stems not only from the need to reach further and wider, but also from the World Council of Credit Union’s (WOCCU) ‘Challenge 2025’, which aims to help digitize by 2025 the more than “85,000 credit unions in 118 countries serving 274 million members”.li

In Rwanda, the Rwanda Information Society Authority (RISA) and the Ministry of Finance are developing in-house software to digitise and automate SACCOS. The idea is that this will permit Rwandan SACCOS to form a cooperative bank. A member from one district would be able to access financial services while they are in another district. According to the head of the Rwanda Cooperative Agency (RCA), Professor Jean-Bosco Harelimana, SACCOS’ interoperability will also allow the RCA to monitor the daily operations in SACCOS.

On January 8th, 2020, Professor Harelimana said the project had reached its pilot phase. This pilot phase will involve three SACCOS in different parts of the country: Rutunga in Gasabo District, Rubavu in Rubavu District and Kanombe in Kicukiro District. In early 2020 the project will commence the nationwide rollout to all 416 SACCOS, which is likely to take one year.lii

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 39 What role might SACCOS play in the future of the EAC? Given their accessibility and distribution, they are likely to remain important for reaching the poorest people, especially those living in rural regions. Trends in digitization and cooperation indicate that their reach and ability to share knowledge may increase their importance in scaling financial inclusion and reaching the region’s poorest.

40 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT NATIONAL GOVERNMENT

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 41 National governments and their agencies and regulators play both direct and indirect roles in fostering financial inclusion. They:

1. Create the regulation that enables markets for financial services to exist while protecting the consumer and financial stability

2. Support financial sector deepening and market development

3. Develop strategies for the advancement of financial inclusion

4. Implement a wide range of programmes relevant to financial inclusion, such as G2P payments and support for smallholders

While the governments of the EAC countries all tackle these broad issues, they do so in different ways according to their needs, preferences, and contexts.

Figure 22. Government initiatives for financial inclusion in the EAC. Source: FinTechStage.

42 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT Policy and Regulation Apart from South Sudan, each government in the EAC has developed some kind of financial inclusion strategy or initiative. Tanzania, Uganda and Burundi have dedicated financial inclusion strategies. All countries have some sort of regulatory framework for e-money issuance, which is the basis for enabling digital financial services, though the extent their framework is supportive of financial inclusion varies across countries.

Kenya As the “cradle” of mobile money, it is not surprising that Kenya has developed both an effective national strategy and an enabling legal framework for digital financial services.

Although Kenya does not have a dedicated financial inclusion strategy, its initiatives fall under Vision 2030, Kenya’s overall national strategy. The most recent stage in Vision 2030 is the Third Medium Term Plan (MTP3), which will run from 2018-2022.lxvii Vision 2030 was developed by the Government of Kenya with USD 750 million in funding from the World Bank. It has four pillars:

• Economic and macro pillar

• Social pillar

• Political pillar

• Foundations pillar

The financial inclusion element of Vision 2030 focuses largely on providing market support, supervisory issues, digital identity, national education and financial services integration (see Figure 22 for more details). Many of these fall under the Economic and Macro Pillar. The ‘Foundations’ pillar also includes sectors or areas important to FI, such as ICT and infrastructure.

MTP3 and the Vision 2030 website both report on progress to date. MTP3 states that the Sector’s achievements include:

• Reviewed legislation, regulation and guidelines governing the Financial Sector Regulatory Authorities

• Implemented the National Payments Act, 2011, in which over 200 government services were fully digitised

• Developed a syllabus for financial education in secondary schools

• Amended the Insurance Act 2015 to define micro-insurance; developed micro-insurance policy and regulations

• Launched the M-Akiba retail savings bond

• Launched a Growth Enterprise Market Segment (GEMS) aimed at expanding the reach of the market beyond the large corporates that currently dominate the securities exchange

• Launched Kenya’s first international sovereign bond and created a hybrid bond market

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 43 • Signed the East African Monetary Union Protocol

• They identify the follow emerging issues and challenges, among others:

• Capping of interest rates

• Emergence of cryptocurrencies

• Investing in Treasury instruments using digital technology (M-Akiba)

• Floating of the Sovereign Bond

• Extension of NHIF coverage to the informal sector

• Poor market conduct, weak consumer protection and inadequate regulatory oversight

• Inadequate access to finance for SMEs

• Slackening of growth in private sector credit

• Low insurance penetration

• Low pension coverage

• Limited use of electronic payments in many parts of the economy

• Low utilization levels of many financial services

• Limited effective competition in some segments

MTP3 includes several targets relating to financial inclusion, such as:

• Delivering 500,000 low cost affordable housing units through budgetary allocations and partnerships with financial institutions, private developers, cooperatives and manufacturers of building materials

• Through the Women Enterprise Fund, increase loan disbursement from a cumulative KSH 10.4 billion to KSH 25.7 billion targeting 2,157,653 beneficiaries by 2022

• Increase the number of women trained on entrepreneurship skills from 956,493 to 1,632,806

• Scale up the Uwezo Fund by Ksh.2.5 billion to cover an additional 500,000 beneficiaries. This fund enables women, youth and persons with disability to access finances and promote businesses and enterprises

For a NFIS to be effective, it needs specific targets that are plotted against a timeline, with clear responsibility designating specific stakeholders to meet these targets. These targets also need to be monitored on a regular basis (at least every 6 months).

MTP3 outlines how progress will be reported and monitored. It states that Ministries, Counties, Departments and Agencies (MCDAs) will prepare quarterly and annual progress reports on implementation. National Treasury and Planning will consolidate these reports into Annual Progress Reports (APRs), Mid-Term and End-Term Review Reports on the implementation of MTP III. These will be presented to several government bodies, including Cabinet, the National and County Government Coordinating Summit, the President’s Delivery Unit, the National Economic and Social Council (NESC) and the Vision 2030 Delivery Board. The

44 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT Vision 2030 website reports to the public on the results of the MTP1 and MTP2.lxviii Since Kenya’s financial inclusion strategy is integrated with its overall national strategy, it is potentially more effective in aligning efforts and avoiding duplication.

Kenya’s regulatory framework for e-money issuance is well developed, given that it has been a frontrunner in mobile money. Non-bank digital financial services providers can issue e-money and provide certain mobile money services, albeit in a restricted context (ex. they are required to hold their e-float in a trust account and are prohibited from earning and paying interest on these accounts) that is risk proportionate (ex. they are subject to lower capital requirements than banks). Kenya also has some of the most developed regulation on competition, consumer protection and data protection in the region.

Areas for improvement include the lack of tiered KYC and simplified CDD (though arguably this is less a priority in a country where 96% of adults have a national ID card), the simplification of agent regulation (currently banking agents, deposit-taking MFI agents, and PSP agents, which include e-money issuers, each have a separate regulatory framework) and the need to implement pass-through deposit insurance for mobile money accounts. Furthermore, Kenya has been criticized for imposing taxes on mobile phone based financial transactions.

Tanzania Tanzania appears to have followed closely the footsteps of its frontrunning neighbour Kenya. In addition to a strong NFIS, Tanzania scores highly for its enabling regulatory framework.

Tanzania’s National Financial Inclusion Framework 2018-2022 (NFIF2)lxviii has a strong focus on digital payments platforms and consumers, including issues relating to access, addressing KYC requirements, providing relevant services, and consumer protection. It places emphasis on specific target groups:

• Women: The Framework “considers women as a pivotal market that deserves increased attention and not as a mere segment to be given preferential treatment” (p.3). It focuses on “providing financial education and financial literacy programs for women, ensuring that all FSPs submit gender-disaggregated data for analysis, and integrate gender issues into policies and other related national strategies” (p.7)

• Youth: The Framework considers opportunities for youth (aged under 25 years) as fundamental to national socio-economic development. Access to digital IDs and phones is identified as important.

• MSMEs: The Framework contends that “lack of access to finance by MSMEs is mainly a result of FSPs’ strict requirements around KYC and formal registration, collateral, credit history and lack of MSME-tailored products” (p.10). To tackle this they will work with stakeholders to “drive innovative solutions that will increase access and usage of financial products and services by the underserved MSMEs” (p.10)

The main desired outcomes are:

• All adults have their profiles in the integrated reference system

• All adults have unique and verifiable identification

• All Tanzanian adults own mobile phone

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 45 • Financial access points are closer to where people live

• All adults have an activity through their account

• Financial products and services are appropriate, affordable and convenient

• The adult population is confident in dealing with FSPs

• All adults save, borrow, transact and mitigate financial risks

• Financial products and services meet consumers’ expectations

Section 4.4 of the Framework describes the performance measures, baseline, targets and high-level initiatives used to meet these outcomes. These include:

• Financial access points are closer to where people live: baseline 86% nationally and 78% in rural areas; target 90% nationally and 85% in rural areas

• All adults own a mobile phone: baseline 63%, target 75%

• All adults have unique and verifiable identification: baseline 23%, target 90%

• All adults have registered accounts with FSPs: baseline 76%, target 85%

• All adults save, borrow, transact and mitigate financial risks: there are several different measures, including for adults, MSMEs, women and youth; e.g. women who have used financial services within the past one year: baseline 61%, target 73%

• Financial products and services that are relevant: there are several measures, e.g. percent of adults with formal savings: baseline 43%, target 60%

• Adults are confident dealing with FSPs: baseline 49%, target 60%

The implementation of the Framework is overseen by the National Council and National Steering Committee, National Technical Committee and National Secretariat. The National Council is responsible for monitoring and evaluation, coordinated by its implementing organ, the National Secretariat. The main tools they use are:

• Performance measurement and reporting framework

• Database to collect, compile and analyse data

• Periodic reports on identified initiatives from implementers

• Research, studies and surveys

• Communication strategy

• Development Partners Support Guidelines

Similarly to Kenya, Tanzania’s regulatory framework allows non-banks to issue e-money based on a risk- proportionate approach. It requires e-money issuers to hold the e-float in a trust account in financial institutions, albeit with diversification requirements, as well as allowing for lower capital requirements for such entities. The framework equally provides for consumer and data protection for digital financial services. As in Kenya,

46 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT deposit insurance does not pass through to e-money accounts. Tanzania has also implemented excise taxes for money transfers, as well as withholding tax on mobile money commissions.

In contrast to Kenya, however, Tanzania allows for tiered KYC and alternate identification, and permits the earning of interest on the e-float trust accounts.

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 47 Uganda

Although Uganda has had in place some form of a national financial inclusion strategy since 2012, its regulatory framework is less enabling for financial inclusion in comparison to Tanzania and Kenya, mainly due to the Bank of Uganda’s lack of mandate in regard to non-bank institutions.

The Uganda National Financial Inclusion Strategy 2017-2022 identifies 21 gaps in financial inclusion; actions are designed specifically to address these. As with the Tanzanian framework, Uganda’s Strategy targets specific groups: in this case, women, youth and rural residents, although the Strategy does not set targets for these groups.

The overarching objective of the Strategy is that “All Ugandans have access to and use a broad range of quality and affordable financial services which helps ensure their financial security” (p.viii). The specific objectives are:

1. Reduce financial exclusion and access barriers to financial services 2. Develop the credit infrastructure for growth 3. Build out the digital infrastructure for efficiency 4. Deepen and broaden formal savings, investment and insurance usage 5. Empower and protect individuals with enhanced financial capability

Specific performance indicators include:

• Reduce exclusion and access barriers: grow usage of formal financial institutions (banks, non-banks including mobile money) from 54% to 80%; reduce financial exclusion from 15% to 5%; increase access points per 100,000 adults from 538 to 615

• Credit infrastructure: Increase credit bureaus coverage from 65 to 40% of adults

• Digital infrastructure: grow active individuals with store-dvalue accounts from 31% to 60% (e.g. mobile financial services)

• Deepen and broaden savings, investment and insurance usage: increase formal savings from 25% to 50% through greater transparency, competition and use of technology; increase percent of adults with emergency savings from 41% to 60%; increase insurance usage from 2% to 7% of adults

• Financially capable and protected individuals: increase the percent of women who feel they understand financial services available to them

The Strategy is implemented by the National Financial Inclusion Steering Committee, which meets at least annually and has the ultimate responsibility for the implementation of the strategy and reporting to government. The Inter-Institutional Committee on Financial Inclusion is the technical and coordination committee, and oversees the work of the NFIS Secretariat and other groups. The Strategy clearly presents baselines and goals for 2022 and an action plan with specific interim dates for completion.

Due to the absence of a dedicated payments law, the Bank of Uganda lacks the legal authority to authorize or regulate non-bank providers of mobile money services directly. Rather, it oversees them indirectly through their partner regulated financial institutions, requiring non-banks such as MNOs to partner with banks and

48 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT other regulated financial institutions. To this effect, it has issued Mobile Money Guidelines that are an interim measure to enable the operation of mobile money services, until a Payment Systems law is passed. Although the Guidelines are generally treated as binding, the legal status thereof is ambiguous.

The Mobile Money Guidelines provide for the safeguarding of funds in escrow accounts as well as consumer and data protection provisions, but there are no provisions concerning specific capital requirements for mobile money or the interest accruing on these escrow accounts. Anti-money laundering regulation provides for simplified Customer Due Diligence (CDD) in lower risk scenarios but there is no risk tiered KYC. Furthermore, the Deposit Protection Fund does not cover individual mobile money accounts. Lastly Uganda currently has a 10% tax on the value of transaction fee for all transactions, having recently repealed a controversial additional 1% excise duty on transaction value of any mobile money withdrawals, transfers and payments.

Rwanda

Although Rwanda has only had a financial inclusion strategy in place since 2012, the building blocks were set in 2008 in its first Financial Sector Development Program, which recommended the development of an appropriate regulatory environment for mobile banking and payments. Thus, it comes as no surprise that Rwanda has one of the most enabling regulatory frameworks for financial inclusion in the region.

Rwanda deals with financial inclusion in its Financial Sector Development Program II (FSDP II).lxxii The Ministry of Finance and Economic Planning published a concept note in November 2015 called Rwanda: Financial Inclusion Programme (R-FIP) 2016-2020, but there is no information available online about whether this programme was implemented. According to the AFI,lxxiii Rwanda has also set up a National Financial Inclusion Task Force. lxxiv

FSDP II has four Programs, of which Program 1 is Financial Inclusion. The FSDPII mid-term assessment states that the Financial Inclusion programme has been the most successful of the four programmes, with at least 41% of its planned policy actions completed or in progress. Progress has especially been made in:

• Capacity building for SACCOs and MFIs

• Strengthening access to finance program

• Planned surveys like FinScope 2015/16

• Advances in financial education and literacy, including the conclusion of the national financial literacy strategy

Areas that need attention in the second half of FSDP II include adjusting policy to reflect changes in the plans for the consolidation of U-SACCOS, and “the enactment of the electronic money regulation and fast racking of the MMT interoperability among the different MNOs to increase uptake and usage of the financial inclusion products” (p.III).

Rwanda scores top marks for its licensing framework of e-money issuers, which allows both banks and non-banks to become payment service providers (PSPs) who can issue e-money, provides for lower capital requirements for PSPs, allows for the payment of 80% of interest to e-money account holders, and implement appropriate safeguarding requirements of customer funds. Furthermore, both its AML/KYC regulation and its agent regulations are enabling, with simplified CDD and tiered KYC for the former, and activity-based

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 49 regulation of the latter. Lastly, Rwanda, unlike most of its neighbours, does not impose any taxes on financial and/or mobile money transactions.

Areas for improvement, however, include deposit insurance, which does not currently extend to individual mobile money accounts, and the lack of a national data protection legislation (although there exist limited data protection provisions in the Mobile Money Guidelines).

Burundi Due in part by the direction set out in the Burundi National Financial Inclusion Strategy 2015-2020, lxxxv Burundi’s regulatory framework has significantly improved since the introduction of its payments services regulation in 2017, and it is almost on par with Rwanda in terms of enabling financial inclusion.

The Burundi National Financial Inclusion Strategy 2015-2020 takes a broad approach focusing on permanent access, mobile phone services, geographic coverage, awareness-building around financial inclusion, refinancing MFIS, and improving the legal framework. It has a focus on rural populations, women, youth, and MSMEs. The Strategy has three main objectives:

• Ensure increased and permanent access to and usage of financial services and products by the population

• Make quality financial services and products available that match the needs of the target clientele of the NFIS

• Improve the environment for financial inclusion

The Strategy provides concrete indicators for access and usage from 2014-2020. These include:

• Double the number of active accounts in financial institutions in order to attain 2.4 million accounts

• Grow the percent of active accounts among adult population at FIs by 64.3%

• Grow the percent of adult female population with at least one deposit account in a licensed FI by 97.4%

• Grow the percent of adults with an account in an MFI by 97.4%

• Grow the percent of access points in rural areas by 9.6%

The NFIS is implemented by a Coordination and Monitoring Committee (CMC-NFIS) and its Executive Unit. The Executive Unit is responsible for monitoring and reporting and setting up technical groups. The Strategy includes a detailed implementation plan with concrete dates.

With respect to the legal and regulatory aspects of financial inclusion, the Strategy outlines the following sub- objectives:

• Provide a legal framework for the financial sector that is adapted to financial inclusion • Set up a regulatory framework for the protection of consumers of financial products and services

50 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT • Make adjustments to legislation, regulations, policies and mechanisms in areas related to the financial sector

• Ensure there are mechanisms for the supervision of financial institutions adapted to the NFIS, in particular for innovations related to the distribution of financial services

The NFIS recommendations concerning the regulatory framework have to a large part been followed. With the passage of the payment services regulation in 2017, non-banks were eligible to become payment institutions and thus to issue e-money. The same regulation provides for lower capital requirements for payment institutions, the safeguarding of consumer funds in an e-float in a separate bank account, and a variety of consumer protection provisions.

Burundi’s AML law allows for low-value anonymous accounts as well as entry-level remote account opening, while its 2017 agent regulations set out a comprehensive regulatory framework for all agents used by payment institutions, regardless of whether the institutions are banks or non-banks. Lastly Burundi, like Rwanda, does not impose any taxes on financial and/or mobile money transactions.

There are still a few outstanding areas that need improvement, such as the lack of a national data protection law or even sectoral data protection, as well as the absence of national deposit insurance scheme.

South Sudan South Sudan does not have a financial inclusion strategy, but it produced an Interim Country Strategy Paper (I-CSP) for the period 2012-2014, which was extended to 2017-2018.lxxxvi In contrast, the regulation of mobile money, although fairly recent, is aligned to a large extent with global best practices.

I-CSP does not directly address financial inclusion, but it does cover aspects of socio-economic development. These include poverty, social inclusion and equity; returnees and externally displaced persons, and addressing the millennium development goals. Critical issues highlighted include state building, weak institutional capacity, dilapidated infrastructure, a narrow economic base with heavy dependence on the oil sector and pervasive unemployment.

National strengths identified in I-CSP include that the country is endowed with abundant natural resources and has potential hydropower sites. The report states that South Sudan also has the potential to be the region’s food basket. It further notes that regional integration may help growth, especially in the form of investment and imports from neighbouring countries, and highlights the importance of learning lessons from other fragile and post-conflict countries.

The Electronic Money Regulation, which was adopted at the end of 2017, provides a regulatory framework for e-money. It allows both licensed banks and non-bank institutions (such as MNOs) to issue mobile money, and includes capital requirements, safeguarding customer funds provisions as well as a framework for agents. It should be noted, however, that MNOs also need to obtain a “non objection letter” from the National Communication Authority to issue e-money, which adds an additional barrier to entry. The 2011 Know Your Customer (KYC) regulation, which requires mandatory SIM card registration, does provide for tiered KYC for accounts that have transaction and/or balance limits, albeit still requiring some proof of identification even for the lowest tier.

South Sudan, however, still lacks a national data protection law or any deposit insurance scheme.

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 51 Figure 23. Main focus areas of NFIS strategies and programmes in the EAC. Sources: Country documentation.

52 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT G2P Payments A major problem with financial inclusion is increasing rates of usage. Even if the majority of a country’s population have access to digital financial services, they will not use them if they lack the means or incentive to do so. One common way to solve this problem is to enrol large organisations to pay recipients using digital financial services. Governments, in particular, have proven useful here because of the volume of payments they make, such as paying salaries, subsidies or social benefits. Moreover, starting with governments means shifting the mindset and paving the way for the introduction of other use cases.

In the EAC, the most common digital government payments are person-to-government (P2G) payments. These include M-Akiba (Kenya), a Government of Kenya issued a retail bond that seeks to enhance financial inclusion for economic development. Also in Kenya, eCitizen allows people to make payments on a single platform.liii The Kenyan Revenue Authority’s KRA iTax and mService allow citizens to file their returns and pay their taxes (m-Service is the mobile application for this service). In Tanzania, the e-Payment Gateway permits citizens to make payments to a broad range of government departments.

Figure 24. G2P payments in the EAC. Data from Global Findex. Data is from 2017 unless indicated otherwise.

However, digital government-to-person (G2P) payments are generally considered to be far more useful for increasing financial inclusion than P2G payments. This is because the amounts transacted are generally both higher and more frequent. Unfortunately, there are few active programmes for digital G2P payments in the EAC. Two initiatives that exist are the National Social Security Fund (Kenya) and the Tanzania Social Security Fund (TSSF) (see Case Study: Tanzania).

Digitising G2P payments to the poor, such as social security payments, can only be a ‘lever of change’ if a substantial proportion of a country’s poor receives government payments in the first place. According to Global Findex,liv in low-income countries globally, around 11% of people receive government payments. In the EAC, the proportion of people receiving government payments is: Kenya 19%, Tanzania 8%, Uganda 15%, Rwanda 13%, Burundi 3% and South Sudan 10%. The poorest 40% of people received fewer government payments than the wealthiest 60% in Kenya (14% poorest, 23% wealthiest), Uganda (12% poorest, 17% wealthiest), Burundi (1% poorest, 4% wealthiest) and South Sudan (8% poorest, 11% wealthiest). In Tanzania and Rwanda figures were the same for the total population.

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 53 Current evidence suggests that levels of digitisation of government payments in the EAC are low. In Kenya, 60% of recipients received their G2P payments through a financial institution, and 22% through a mobile phone. In Uganda, these rates were 30% and 26% respectively; in Rwanda, 46% and 12%. Unfortunately, the Global Findex 2017 does not include data on how people receive payments in Tanzania, Burundi and South Sudan.

Generally speaking, the numbers of government cash payment recipients seem high enough in all countries except Burundi to make digitisation a viable strategy for increasing usage of digital financial services. The data also suggest that even in countries with digital G2P payments there is scope to extend the ways in which people are paid digitally; for example, increasing payments to mobile phones and giving people choice as to how they are paid. Case Study: Tanzania According to the World Bank,lv the Government of Tanzania’s total expenditures on social protection amounted to 2.35% of GDP in 2016, or around TZS 2,436.7 trillion (USD1.11 billion). The Economist reports that around 1.1 million households receive around USD13 per month.lvi G2P payments in these programmes are generally made in cash via a nation-wide delivery mechanism.lvii

The largest spending component is old-age pensions, followed by social assistance and generalized subsidies. Spending on employment programmes is relatively low. Other spending includes fisheries subsidies, agricultural schemes, mother and child nutrition, school transport subsidies and subsidies for electricity.

Figure 25. The Tanzanian social protection system through the lifecycle lens. Source: Ihsan Ajwad, Mohamed, Miglena Abels, Marina Novikova and Muderis Abdulahi Mohammed. 2018. Financing Social Protection in Tanzania. The World Bank, p.19.

The World Bank reports that Tanzania’s Productive Social Safety Net (PSSN) provides three types of cash transfers:lviii

1. A (fixed) basic monthly transfer to improve household consumption;

2. A variable conditional transfer for households with children to incentivise households to invest in the human capital of their children; and

3. A seasonal transfer linked to participation in labor-intensive public works to increase and sustain household assets to help households increase incomes and therefore consumption during lean seasons.

54 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT According to the World Bank, impact evaluation indicates that the PSSN cash transfer component is having a statistically significant impact on household welfare by reducing poverty, increasing food consumption and dietary diversity, increasing school enrollments, increasing health visits and increasing health insurance access. It is also helping households to save and accumulate assets.

The Tanzania Social Action Fund (TASAF) began implementing a G2P digital payments system in August 2017.lix In the pilot, customers were given the choice to opt into digital payments at any of the eight providers linked to the system, or continue using cash.

By June 2018, a total of 44,710 households, or 44 percent of the PSSN recipient households living in the pilot region, had signed up for ePayments and were receiving their payments into an account at the provider of their choice. CGAP (2019) reported that within a year the number of people opting for digital payments gradually grew from 17 to 44 percent. They state that allowing people the choice between cash and digital payment was important for building trust.

In 2019, TASAF aimed to develop the final design of the ePayments System based on 1) learnings from pilot phases; 2) scaling ePayments System to cover all PSSN participants; 3) creating TASAF-specific financial products and services.

Given the importance of G2P payments in increasing usage rates of digital financial services, there is certainly room to expand G2P payment programmes in the region. G2P initiatives in Kenya and Tanzania have been sufficiently successful that they could offer ‘best practices’ and guidelines for the development of programmes in neighbouring countries.

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 55 KEY POPULATIONS

56 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT Figure 26. Demographics targeted by financial inclusion initiatives in the EAC (excluding SACCOS). This figure does not include initiatives that are targeted at society KEY POPULATIONS generally. Source: FinTechStage. • In the EAC, the majority of financial inclusion initiatives (services and projects) target a broad population. Figure 26 shows the breakdown in financial inclusion initiatives aimed at target groups. We found that 43.2% of financial inclusion initiatives serve Consumers across the board. Most financial services are designed for consumption by individuals, regardless of their income levels, gender, professional status, or other differentiating factors. There is a general lack of tailoring of products to specific groups. Like banks, MMOs and MFIs tend to offer fairly standardised products.

Some financial inclusion products and projects target specific populations, especially ones that are vulnerable (such as women), socially important (such as community groups and households) or economically vital (such as smallholders and MSMEs). In this section, we focus on women, smallholders and MSMEs. However, it is worth noting some features of other categories:

• The Businesses category, representing 6.9% of the population, comprises services that are targeted at businesses generally. It includes services such as digital foreign exchange (BitPesa), cryptocurrency applications, software solutions and loans. It does not include services specifically for financial service providers and MSMEs. While most of these services do not address financial inclusion directly, they are important in that they serve the needs of companies that are part of the ecosystem.

• Initiatives labelled Financial Sector (4.5%) are mainly services for the industry, such as software for MFIs and savings and loans cooperatives (e.g. Awamo and Ensibuuko in Uganda). It also includes initiatives to develop the financial sector, often run by national governments or FSDs.

• The category Market (4.2%) includes solutions such as trading platforms (e.g. G-Soko in Tanzania) and the USAID East Africa Trade and Investment Hub, as well as research into market issues, such as supply chains.

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 57 Our data indicate that the rate at which particular groups are targeted stays roughly the same across countries; there are not notably more projects targeting women in, say, Kenya compared to Uganda. The only exception to this is initiatives extending financial access to refugees, but we only identified three such programmes. In Burundi, the Grameen Foundation runs a ‘Finance for Refugees’ program. In Kenya, there are two financial inclusion initiatives for refugees: BanqU, which provides an economic identity through blockchain, and a financial inclusion programme implemented by African Action Help International.

Figure 27. Financial inclusion initiatives in the EAC targeting consumers. Source: FinTechStage.

Strategies to increase usage include targeting smallholders, women, and recipients of government payments. For example, insurance specific to agricultural cycles serves the needs of smallholder farmers. Microcredit repayment cycles work best when designed around women’s schedules and income patterns. Delivering social security payments to the poor may involve thinking through how users will access agents to collect their payments. However, as our data indicate, these niche programmes are not particularly common in the EAC.

58 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT Women

Figure 28. Gender differences in financial services use in the EAC. Source: Global Findex.

Global Findex data indicate that there is a steady gender gap in the EAC (Figure 28). Women are less likely to have an account at a financial institution, own a mobile money account, save to invest in a business or borrow to invest in a business. Women are more likely to use informal financial tools (such as saving with a friend) or save with smaller organisations (such as savings clubs and SACCOS).

Our data indicate that only 2.9% of financial inclusion initiatives in the EAC specifically target women. However, the actual figure could be as high as 17% if we assume that most MFIs target women.lx Nonetheless, almost all of the financial services offered by MFIs are credit or savings products, with perhaps some financial management training.

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 59 Figure 29. Financial inclusion initiatives in the EAC specifically targeting women. Source: FinTechStage.

The network map of initiatives targeting women (Figure 29) gives us some indication of the spread of services for women across the region. Tanzania has the largest number of women-specific services and programmes. These are provided by a mixture of not-for-profits, MFIs, and others. MFIs include the Women’s Microfinance Initiative (founded in 2007) and the Women’s Empowerment Development Agency (WEDAC, founded 2000).

We identified one fintech in Tanzania that has been active in developing services for women in recent years. JUMO is a B2B fintech that offers a technology stack to offer savings, lending and insurance products to entrepreneurs in emerging markets. In 2016 they partnered with Airtel to pilot a savings product for women, who they see as being likely to save with greater frequency than men. However, this service does not appear to have yet made it to market.

In Kenya, there are several financial inclusion programmes for women. The Joyful Women’s Organisation (JOYWO) provides both financial services and capacitation programmes for women. Their services include informal savings groups, market access, livelihood projects and advocacy.

Other initiatives provide support and financial education rather than offering financial services. For example, BSR’s HERproject focuses on women’s empowerment in the workplace. They provide tools to help companies create better conditions for women, and train women on issues including financial inclusion, health and gender inequality.

One government service for women is Linda Mama in Kenya, a mobile-based national hospital insurance scheme that aims to ensure that pregnant women and infants have access to high-quality and affordable health services.

In Rwanda, most initiatives for women are offered by MFIs. These include FINCA, Axon Tunga Microfinance and ASA International. International organisation Women for Women focuses on improving women’s lives in post-conflict countries. In Rwanda, they offer a wide range of training and capacitation initiatives for women, including livelihood training, financial literacy, and more. As with HERproject in Kenya, they focus on empowering women generally, and financial health forms just a part of their program.

60 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT One interesting programme in Uganda is The Hunger Project’s microfinance program. This initiative focuses on women smallholders, delivering microfinance through rural banks. Also in Uganda, the Ministry of Gender, Labour and Social Development runs the Uganda Women Entrepreneurship Programme (UWEP), which aims to improve access to affordable credit, technical knowledge, skills for business development and markets, as well as information regarding business opportunities.

Burundi has relatively few initiatives for women. Community Outreach Burundi provides business and financial training to women. Women’s Self-Empowerment works with immigrant and refugee women and girls. Their leadership and life skills training includes workshops in time management, homeownership, financial literacy and self-esteem.

In South Sudan initiatives for women’s financial inclusion tend to be built into programmes focusing on basic needs, such as food security. For example, in January 2019 a consortium of not-for-profit organisations (Cordaid, Agriterra and SPARK) launched a project to support 10,000 farmers and their agribusinesses, including a focus on supporting youth and women to start their own business. This project focuses on food security but also collaborates with MFIs to improve beneficiaries’ access to funding.

In order to close the gender gap, it is helpful to provide women with propositions that are designed for them, or delivered to them in ways that fit with their lives. This is especially the case for women in rural areas and for women who are not particularly financially literate. IDEO conducted research on women’s financial practices and needs in six countries (Bangladesh, India, Kenya, Nigeria, Pakistan, and Tanzania). They generated some thoughtful ideas as to how to approach women that focuses less on technical or functional needs, and more on the context of women’s lives. Their suggestions include:

• Recognising that women already engage in positive financial behaviours, and increasing their capacity to do so

• Help women take more financial control at key moments of their lives when rules relax or circumstances change

• Encourage women to lean on their social networks for support, rather than see this as shameful

Overall, research indicates that women’s financial inclusion programmes are most successful when they also support women with non-financial aspects of their lives: training in skills and financial literacy, considerations of women’s daily lives, and so on. Across the EAC, more could be done to a) increase the number of women- specific initiatives that take a holistic and direct approach to women’s financial inclusion; b) support initiatives aimed at a broad population to serve women better, such as through partnering with organisations that have the relevant skills, experience and capacity to add value.

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 61 MSMEs

Figure 30. Financial inclusion initiatives in the EAC specifically targeting MSMEs. Source: FinTechStage.

Around 20% of financial inclusion services and programmes in the EAC target MSMEs specifically. These services are overwhelmingly offered by banks and MFIs. There are very few propositions by fintechs or NGO programmes. There is a notable absence of other services for MSMEs beyond credit provision, such as capacitation.

The network map (Figure 30) shows that Kenya has the greatest number of organisations serving MSMEs, as well as the greatest diversity. Tanzania and Uganda are the next largest, followed by Rwanda, Burundi and South Sudan. This result is consistent with the market maturity ratings we describe later in this report, and shows that the presence of niche services corresponds with the overall market size.

The initiatives for MSMEs that are not provided by banks or MFIs also tend to focus on credit products. Kenyan K-REP Development Agency develops and pilots sustainable microfinance products and services in order to institutionalize successful initiatives with existing or new microfinance institutions. Their propositions include savings products as well as credit, and they serve both individuals and MSMEs.

Also in Kenya, DAI’s Financial Inclusion for Rural Microenterprises (FIRM) aims to expand financial services in five key economic areas: agriculture, renewable and clean energy, information and communication technology, gender and youth, and policy reform. They support the commercial sector to deliver customized financial products and services for entrepreneurs and busi¬nesses in rural areas. DAI runs a similar programme in Rwanda, called Nguriza Nshore.

There is a range of fintechs offering services to business, but few cater to MSMEs specifically. One example is Data Integrated Limited (DIL), a Kenyan ICT company that offers financial solutions to MSMEs in Africa, including payroll, point of sale and cashless payments. Another is Beyonic, which has offices in Kenya, Uganda and Tanzania. They offer the Beyonic Platform, a multi-network and multi-country mobile money payments platform that permits the cashless management of business finances.

62 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT The fact that most propositions focus on credit indicates that MSMEs are being under-served in the EAC. Globally, there are many kinds of financial products that are helpful for MSMEs, including reverse factoring, payments tools, and insurance products. However, few of these are present in the EAC. Fintechs, in particular, could play a stronger role here, especially since the fintech ecosystem is already reasonably well-developed. Supporting fintech hubs and stimulating product development could assist in developing viable and meaningful propositions for MSMEs.

Smallholder Farmers Like other low-income countries around the world, most of the countries in the EAC have a large agricultural sector and a substantial rural population. Financial inclusion is important for rural areas because poverty tends to be more prevalent than in urban centres.

Figure 31 shows how the ratio of rural poverty to the total population differs from country to country. The lowest rural population in the region is 66% in Tanzania; the highest is 87% in Burundi. Uganda has the lowest rate of rural poverty at 22%. Burundi has the largest rate of rural poverty at 68.8%, as well as having the highest rate of rural population.

Figure 31. Rural population and rural poverty in the EAC, by country. No figures on rural poverty were available for Rwanda. Source: World Bank Country Data

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 63 Figure 32. Employment in agriculture in the EAC, by gender and country. Source: World Bank Country Data.

Globally, women comprise around 43% of the agricultural labour force in developing countries.lxii However, in all six EAC countries, female employment in agriculture is higher than male employment in agriculture. With the exception of South Sudan, between 9-12% more women than men work in agriculture. In South Sudan, this difference rises to 24%. The dominance of women in agriculture, along with higher rates of poverty in urban areas, makes it all the more important that rural women in the EAC have access to appropriate financial tools.

64 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT Figure 33. Financial inclusion initiatives in the EAC targeting smallholders. Source: FinTechStage.

Initiatives aimed at smallholders comprise 6.4% of all financial initiatives in the EAC. The network map for smallholders (Figure 33) shows that these are reasonably well-distributed across the region.

The most common providers of financial services and support to smallholders are not-for-profit organisations, followed by MFIs. They mostly offer credit and insurance products, or alternatively, initiatives to improve information sharing and coordination along supply chains.

For example, Opportunity International’s AgriFin project in Uganda uses mobile phones to help smallholder farmers access digital services to boost their harvests and incomes. In Burundi, One Acre Fund provides a bundle of services including asset-based loans, inputs delivery, training in modern agricultural techniques and crop storage solutions. They take a holistic approach, arguing that ‘Every link in this chain is important—if one is missing, then the others won’t have as much impact.’ lxiii

In some cases, fintechs provide services to smallholders. Kenya-based FarmDrive offers alternative credit scoring for smallholder farmers using mobile phones. Also in Kenya, ZuriCap provides factoring services for farmers. In Rwanda, GoLimited offers a mobile app called AgriGo to help farmers make planting and harvesting decisions, connect to markets and manage their expenses. Given that smallholders especially can benefit from specialised financial services we would expect to see more fintechs in this market. As with MSMEs, there is considerable potential for fintechs to develop solutions within the region.

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 65 Figure 34. A Maasai herdsman in Tanzania. Source: skeeze, Pixabay.com.

66 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT The Real Economy: 21st Century Pastoral Livelihoods The emerging infrastructure and social structures surrounding mobile phones and mobile money indicate a range of benefits for remote rural areas and the vital pastoral livelihoods they support.lxiv

Successful pastoralism requires herd mobility, quick and adaptable responses to changes in environmental conditions, reliable networks of social relationships, as well as market and marketing savvy. All of these dimensions can potentially be enhanced by the appropriate use of mobile technologies.

Mobile phones have been rapidly and widely adopted by pastoralists in the EAC, with 93% of Maasai herders relying on mobile phones for some aspect of their work.

Without electricity grids in remote rangelands, solar and wind-powered mobile units have allowed for unprecedented levels of connectivity in communications, information sharing, and commerce. At the basic level of communications, pastoralists use mobile phones to stay in touch with family members, other herders, and traders.

In terms of the productive system, herders have various uses for mobile phones. In Kenya, pastoralists are collaborating with development and government stakeholders to collect information on vegetation and natural resources. Such participatory mapping initiatives contribute important insights into environmental conditions, resource use, planning, and the creation of early-warning systems. Herders also use mobile phones to access market information and satellite-derived vegetation data to make informed economic decisions.

Mobile money offers additional benefits to support pastoralist livelihoods. M-Pesa enables pastoralists to pay for inputs or be paid for livestock or remittances remotely, saving the costs of travel for exchanges and insulating from the risk of cash theft while serving as a means of transfer for the unbanked. While M-Pesa kiosks are most prominent in Kenyan cities, they are also scattered in rangeland towns and settlements.

Beyond benefits to herders themselves, the use of mobile phones and mobile money has created viable microenterprises in the rangelands around selling, repairing, and charging phones and managing kiosks, especially among youths. Development projects have also supported training youths and women to maintain the solar recharging panels.

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 67 ECOSYSTEM MATURITY

68 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT Kenya Tanzania

Uganda Rwanda

ECOSYSTEM MATURITY

Burundi South Sudan

Figure 35. Network maps of financial inclusion stakeholders in the EAC, per country. Source: FinTechStage.

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 69 The network map of financial inclusion stakeholders in the EAC (Figure 35) allows us to analyse ecosystem maturity in each country. The maps include all players involved in financial inclusion directly or indirectly, including financial service providers, not-for-profits with financial inclusion programs, and government agencies.

Note that the network maps do not represent the revenue or market share of each stakeholder. Nor do they tell us how poor people are using financial services. However, comparing the network maps side by side allows us to see which sectors are dominant in each country and their distribution throughout the country. The network maps can help us understand market maturity because they show the ratios of different stakeholders, as well as the overall size of the sectors.

We define a mature market as one where there is a variety of products and providers that are proven to help advance financial inclusionnow (e.g. microfinance, mobile money), or that are likely to be important in the near future (e.g. fintech). The value of diversity in financial services for the poor has been long documented by researchers: the ‘Portfolios of the Poor’ study in Bangladesh and South Africa was especially influential in demonstrating how poor people depend on a wide range of financial tools (their ‘portfolio’) to manage their financial needs.lxvi

An ecosystem with a variety of players is more anti-fragile and, most importantly, better serves the needs of the poor and particularly disadvantaged groups, such as women and smallholders. As we have seen, some financial services (such as SACCOS) may serve relatively few people but play a critical role in reaching poor and rural people. Women are best served when financial inclusion initiatives relate to their real lives and are coupled with capacitation—features that companies, which must turn a profit, are not always best placed to provide. MSMEs and smallholders can benefit from specialised solutions that fintechs, as small and agile companies, may be best-placed to develop.

We can assume, for example, that markets with a dominance of money transfer companies are less mature, since money transfers are expensive and can be difficult to access. In contrast, markets with a diversity of players—banks, MMOs, microfinance, NGOs, government agencies, and so on—are more mature because they provide a range of propositions and are more resilient.

Markets with a greater number and variety of fintech companies may also be seen as more mature in the sense of being ready to face new challenges and market conditions. This is the case even though fintechs are not yet major players, because fintechs have the potential to provide niche solutions to businesses and particular groups of individuals (e.g. farmers, women) that can extend access and usage of financial services among the poor.

Comparing the network maps with Global Findex 2017/2014 data on financial service access gives us a sense of how market maturity aligns with actual financial inclusion.

Kenya generally has the most organisations in each sector, and has quite a good distribution across the sectors. In terms of total number of companies, there are more fintechs (light green dots) than banks sector (dark blue dots). There are 66 fintechs, 49 banks, 40 money transfer companies and 25 microfinance institutions. NGOs offer 31 financial inclusion programmes of different kinds, and there is also a good government presence in the sector. Importantly, there is also a healthy cluster of tech hubs and fintech hubs. This is important because they connect different players in the ecosystem, which increases opportunities for collaboration and knowledge- sharing. Overall, Kenya’s financial inclusion ecosystem displays high levels of maturity.

Tanzania has a similar number of banks (42) and MFIs (30) as Kenya, but fewer money transfer companies (30) and half the number fintechs (31). The number of NGOs offering financial inclusion products and programmes is almost identical. The presence of government programmes and supporting associations is also similar. Since the populations of the two countries are similar, these figures are readily comparable. Overall, in comparison with Kenya, Tanzania’’s financial inclusion ecosystem is at a similar level of development, but with less activity in the fintech space.

70 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT The population size of Uganda is slightly smaller than that of Kenya and Tanzania but is still close enough for near-direct comparison. Interestingly, in Uganda there are more fintechs (37) than banks (28). There are 35 MFIs and 36 money transfer companies. We see a similar number of NGO, government, and association activities as in Kenya and Tanzania. Of the three countries, Uganda exhibits a greater ratio of financial service provision outside of the banking sector.

The number of NGOs running financial inclusion programmes is similar in all EAC countries except South Sudan. However, Rwanda and Burundi are the only two countries where the NGO sector is the largest sector relative to the others. In Rwanda, there are 31 NGOs. Money transfer (27 companies) is the second-largest sector, followed by fintechs (17), MFIs (17), banks (14) and government programs (13) in relatively equal numbers. In Burundi, there are 21 NGOs, 22 MFIs, 17 money transfer companies, 14 banks, six fintechs and six government programs. The greater presence of NGOs and the prevalence of money transfer companies indicates that companies find it difficult to develop a viable business proposition in these two countries. These markets exhibit reasonable diversity but are not particularly mature.

Of the six EAC countries, South Sudan has the least mature market for financial inclusion. The banking and money transfer sectors dominate; the other sectors are very small. We identified 15 banks and 11 money transfer companies, but just eight NGOs, three MFIs and four fintechs operating in the country. As of 2019, there are two MMOs in South Sudan, but these are very new and not yet fully operational. Due to political conflict and instability, few organisations are able to operate in the country. Only 9% of people aged over 15 years have an account with a financial institution, and this drops to 4% of the poorest 40% of the population (Global Findex 2017). There is much work to be done, and achieving ecosystem maturity is likely to take a long time.

How can market maturity in the EAC be improved, and how may this help financial inclusion across the region as a whole? Fostering a healthy and diverse ecosystem means supporting multiple sectors and players, and creating mechanisms by which successes can be shared across borders. This could include, for example:

• Ecosystem diversity ‘health checks’ to ensure the different parts of the system are operating well

• Directing funding to the weaker parts of the ecosystem, such as particular countries (South Sudan, Burundi), target populations (women, smallholders, MSMEs), or services (fintech, SACCOS)

• Assisting successful companies and organisations to expand their operations across borders

• Assisting domestic organisations to partner with organisations in neighbouring countries (especially where domestic organisations have strong connections and a history of operation)

• Fostering knowledge-sharing within the region

• Augmenting the ability of governments (regional, country, local) to assist in the development of this diverse ecosystem

• Evaluating the effects of increased cooperation on financial inclusion

Beyond the EAC, other kinds of cross-border and regional collaboration may also prove useful. The Common Market for Eastern and Southern Africa (COMESA) especially may provide useful and productive channels for collaboration and the development of a more financially inclusive society.

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 71 THE PATH FORWARD

72 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT The advancement of financial inclusion in the EAC has been highly uneven across the six Member States. We consistently see Kenya coming out ahead on all kinds of indicators, both in terms of financial inclusion rates and the maturity of the stakeholder landscape. Uganda, Tanzania and Rwanda tend to be on a similar level in terms of both financial inclusion and market development: there is substantial room for improvement in financial inclusion, but the state of the stakeholder landscape is promising. Burundi and South Sudan are behind in terms of both financial inclusion and the state of the stakeholder landscape. South Sudan is especially problematic as chronic insecurity prevents many stakeholders from operating in the country.

Gaps in financial inclusion propositions vary. They include:

• Stakeholder capacity to reach the poor—Many stakeholders could achieve more with respect to financial inclusion. In particular, companies could be assisted to improve the efficiency of their services to create more viable value propositions for the poor. Where there is no clear business case they may need to be subsidised by government bodies or international organisations. There are not always viable market solutions to socioeconomic development, which is why multilateral partnerships have been used extensively over the past few decades (such as by USAID), and why expanding partnerships in the EAC is so important.

• Reaching disadvantaged groups—For financial inclusion to be effective it needs to reach disadvantaged groups such as women, smallholders, refugees, youth and MSMEs. Not-for-profit and international THE PATH FORWARD organisations are especially well-placed to provide capacitation programs for the poor to overcome issues of distrust, literacy, etc. NFIS strategies of most EAC countries specifically target these groups, although their depth of evaluation and monitoring of these groups differs. Stakeholders could be better supported to understand how to serve these groups and meet targets.

• Leveraging local stakeholders—Implementing successful financial inclusion initiatives can require local knowledge of market activities, culture and politics. For decades it has been generally accepted that the most successful development programs are the ones that are embedded in local contexts. Our data suggest (although do not prove) that this is the case for South Sudan especially. The ongoing existence of SACCOS and other local groups suggests that this is true for the region as a whole.

• Increasing access and usage—Across the region, the majority of people who do not have an account say they would like to have one but do not have enough money to use one. Increasing incomes, digitising incomes, and improving awareness of how digital wallets work may assist with advancing both access and usage. Kenya and Tanzania are implementing G2P payments, but these could be expanded further. Lessons from Kenya and Tanzania could be applied to develop G2P payments in Uganda, Rwanda, Burundi and South Sudan (where social payments are extensive enough to warrant their digitisation). Domestic and cross-border interoperability is also a known issue discouraging use.

In our view, the path forward would be to analyse and act at the regional level, while keeping an eye on local context for the purposes of both initiative design and mode of implementation. The region is highly diverse: rates of poverty and financial inclusion are vastly different across the region. Moreover, although there are regional treaties that overlap (such as the East Africa Community Treaty and the Southern Africa Development Community Treaty), each country has its own regulatory bodies, economies, cultures, and market systems.

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 73 There are several actions that could be taken at the regional level. These include:

1. Harmonise legislation across the region (as per Banque Centrale des Etats de l’Afrique de l’Ouest [BCEAO] in West Africa and Central African Economic and Monetary Community [CEMAC])

2. Develop a regional biometric ID to overcome KYC challenges (as per BCEAO)

3. Stimulate regional initiatives to accelerate the growth of fintech; for example, regional innovation hubs that focus on cross country learnings, attracting foreign investment, or a regional sandbox network to allow passporting from one country to another (as per the Global Financial Innovation Network [GFIN])

4. Development of regional interoperable payment schemes

5. Support for cross-border collaborations and knowledge sharing, such as the development of partnerships and opportunities to share strategies and knowledge, including lessons in G2P payments, tailoring products to specific groups, or tackling inefficiencies in service delivery to increase profits

6. Capacity-building for financial inclusion stakeholders, especially those who serve financial inclusion goals indirectly, to improve their product offerings for lower income and remote people and help them understand when strategies to reach consumers need to be tailored to niche groups or circumstances

Further actions may need to be aimed at particular populations and/or tailored to local contexts. Certain populations will require products and projects designed specifically for them; for example, financial services with interfaces suitable for people with low literacy levels, or apps designed for mobile youth.

In some cases, the functionality of products and programs may be suitable for a broad population, but may need to be delivered to particular groups in specific ways. For example, uptake of digital financial tools by the poor can be more effective if accompanied by training in how to use the tool (e.g. navigating menus, understanding the costs of maintaining a wallet) or how to incorporate it into daily activities (e.g. paying merchants with mobile money, when to buy insurance, etc.)

There is plenty to be done to advance financial inclusion in the EAC, and also plenty that can actually be done. Meeting the diverse needs of the region requires a healthy ecosystem with a broad range of stakeholders who can develop viable propositions. Coordination and collaboration across the EAC—including sharing best practices about what works and what doesn’t—may assist in scaling financial inclusion faster and preventing redundancies and inefficiencies.

A multilateral and differentiated approach is the most efficient, resilient, and human-friendly way to fill the present gaps in provision and create a kind of financial inclusion that provides values to people, businesses, stakeholders and society at large.

74 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT Methodology

The data presented in this report was collected and analysed by FinTechStage and Canela Consulting. The goal was to illustrate the extent of the financial inclusion ecosystem in the EAC, map the relationships between stakeholders, and identify gaps in the provision of financial inclusion services and programmes.

To do this, we collected data on all companies and organisations that can be considered stakeholders. This includes:

• All financial service providers that can serve people who are poor (e.g. banks, MFIs, MMOs, SACCOS, money transfer and fintechs)

• Companies that provide important infrastructure such as mobile network operators, switches and fintechs serving financial service providers

• Industry associations that serve the financial sector and play a coordination/capacitation role

• Not for profit and international organisations that run financial inclusion programmes

• Government agencies with financial inclusion programmes

• Tech hubs and fintech hubs

The data does not include financial services not realistically accessible by the poor, such as expensive insurance or wealth management.

We collected this data from hundreds of sources. First, we identified existing lists of organisations (e.g. banks, fintechs, MFIs). Second, we then searched the Internet to find companies and organisations that did not appear on these lists. Third, we validated that these companies are currently in operation and offer products and programmes that fit into our ‘financial inclusion’ criteria. Fourth, we cross-checked the lists against all six EAC countries to ensure we had a full view of which providers were in operation in which locations.

Key data points were identified, and a Relational Model was defined, and the data cleansed—’strict’ for numeric data, ‘fuzzy’ otherwise— normalized & validated for statistical analysis.

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 75 APPENDIX A: NETWORK MAPS

76 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT Kenya

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 77 Tanzania

78 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT Uganda

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 79 Rwanda

80 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT Burundi

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT South Sudan

82 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 83 APPENDIX B: LISTS OF STAKEHOLDERS IN THE EAC

83 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 83

Appendix B: Lists ofKeny Stakeholdersa in the EAC VKenya

Organisation / Initiative Target Population Target Area Financial Services

Associations

Alliance for Financial General Policy, Regulation & - Inclusion - African Financial Supervision Inclusion Policy Initiative

Association of Microfinance Financial Sector Advisory, Advocacy & - Institutions Kenya Coordination

East Africa Grain Council Market Market Development - (EACG) - G-Soko

GSMA Sub Saharan Africa Financial Sector | Market Development - Consumers | Market

Kenya Bankers Association - Financial Sector Research & Evaluations - Center for Research on Financial Markets and Policy

Kenya Union of Savings and Financial Sector Advisory, Advocacy & - Credit Cooperatives Lt Coordination

Banks

ABC Bank MSMEs | Products & Innovation General Banking Consumers | Businesses

Bank AL Habib Limited MSMEs | Products & Innovation General Banking Consumers | Businesses

Bank of Africa MSMEs | Products & Innovation General Banking Consumers | Businesses

Bank of Baroda MSMEs | Products & Innovation General Banking Consumers | Businesses

84 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 84

Bank of China MSMEs | Products & Innovation General Banking Consumers | Businesses

Bank of Kigali MSMEs | Products & Innovation General Banking Consumers | Businesses

Barclays Bank of Kenya MSMEs | Products & Innovation General Banking Consumers | Businesses

Citibank, N.A. Kenya Branch MSMEs | Products & Innovation General Banking Consumers | Businesses

Commercial Bank of Africa MSMEs | Products & Innovation General Banking Consumers | Businesses

Consolidated Bank of Kenya MSMEs | Products & Innovation General Banking Consumers | Businesses

Cooperative Bank of Kenya, MSMEs | Products & Innovation General Banking Ltd. Consumers | Businesses

Credit Bank Plc MSMEs | Products & Innovation General Banking Consumers | Businesses

Development Bank of Kenya MSMEs | Products & Innovation General Banking Ltd. Consumers | Businesses

Diamond Trust Bank MSMEs | Products & Innovation General Banking Consumers | Businesses

Dubai Islamic Bank MSMEs | Products & Innovation General Banking Consumers | Businesses

Ecobank Kenya MSMEs | Products & Innovation General Banking Consumers | Businesses

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 85

Equity Bank MSMEs | Products & Innovation General Banking Consumers | Businesses

Family Bank MSMEs | Products & Innovation General Banking Consumers | Businesses

First Community Bank MSMEs | Products & Innovation General Banking Consumers | Businesses

Guaranty Trust Bank Kenya MSMEs | Products & Innovation General Banking Consumers | Businesses

Guardian Bank MSMEs | Products & Innovation General Banking Consumers | Businesses

Gulf African Bank MSMEs | Products & Innovation General Banking Consumers | Businesses

Habib Bank AG Zurich MSMEs | Products & Innovation General Banking Consumers | Businesses

HDFC Bank Ltd. MSMEs | Products & Innovation General Banking Consumers | Businesses

Housing Finance Company MSMEs | Products & Innovation General Banking of Kenya Consumers | Businesses

I&M Bank MSMEs | Products & Innovation General Banking Consumers | Businesses

Imperial Bank Kenya (In MSMEs | Products & Innovation General Banking receivership) Consumers | Businesses

Jamii Bora Bank MSMEs | Products & Innovation General Banking Consumers | Businesses

86 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT

Kenya Commercial Bank MSMEs | Products & Innovation General Banking Consumers | Businesses

M Oriental Bank (formerly MSMEs | Products & Innovation General Banking Oriental Commercial Bank) Consumers | Businesses

Mayfair Bank MSMEs | Products & Innovation General Banking Consumers | Businesses

Middle East Bank Kenya MSMEs | Products & Innovation General Banking Consumers | Businesses

National Bank of Kenya MSMEs | Products & Innovation General Banking Consumers | Businesses

Nedbank MSMEs | Products & Innovation General Banking Consumers | Businesses

NIC Bank MSMEs | Products & Innovation General Banking Consumers | Businesses

Paramount Universal Bank MSMEs | Products & Innovation General Banking Consumers | Businesses

Prime Bank (Kenya) MSMEs | Products & Innovation General Banking Consumers | Businesses

Rand Merchant Bank (RMB) MSMEs | Products & Innovation General Banking Consumers | Businesses

SBM Bank Kenya Limited MSMEs | Products & Innovation General Banking Consumers | Businesses

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 87

Sidian Bank MSMEs | Products & Innovation General Banking Consumers | Businesses

Spire Bank MSMEs | Products & Innovation General Banking Consumers | Businesses

Stanbic Bank Kenya MSMEs | Products & Innovation General Banking Consumers | Businesses

Standard Chartered Kenya MSMEs | Products & Innovation General Banking Consumers | Businesses

Stawi Loans MSMEs Products & Innovation Personal Lending | MSME Lending

Trans National Bank Kenya MSMEs | Products & Innovation General Banking Consumers | Businesses

United Bank for Africa MSMEs | Products & Innovation General Banking Consumers | Businesses

Victoria Commercial Bank MSMEs | Products & Innovation General Banking Consumers | Businesses

Fintech Companies

Abacus Market | Financial Products & Innovation Investment | Financial Sector Management

Africa's Talking Businesses Products & Innovation Comparison Sites / Aggregators

Alliance Premium Services Consumers Products & Innovation Payments Limited

BanqU Consumers | Products & Innovation Blockchain | Identity Refugees & Security

Beyonic MSMEs Products & Innovation Payments

88 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT

Bismart insurance Consumers Products & Innovation Insurance | Comparison Sites / Aggregators

Bitpesa Market | Merchants | Products & Innovation Remittance | Businesses Currency Exchange / FX | API

Bitsoko Consumers Products & Innovation Blockchain | Payments | POS

Bluewave Consumers Products & Innovation Insurance

Branch Consumers Products & Innovation Mobile Wallets | Credit Scoring | Personal Lending

CarePay - M-TIBA Consumers Products & Innovation Insurance

Cellulant Financial Sector Payments Interoperability Payments | Blockchain

Craft Silicon Consumers Products & Innovation Core Banking & Infrastructure

Data Integrated - MobiTill MSMEs Products & Innovation Data Management & (Public transport), MobiTill Big Data | Payments | POS, Mapato (Payroll) and Payroll & Benefits Epesi Tap & Go Card

Denkin Insurance.com Consumers Products & Innovation Insurance | Comparison Sites / Aggregators

DigiFarm (Safaricom/M- Market | Smallholder Products & Innovation Mobile Platforms Pesa) Farmers

Digital Vision Market Products & Innovation Investment | Financial Management

DPO Group (PayFast) Consumers Products & Innovation Mobile Platforms

Farm Drive Smallholder Products & Innovation Mobile Platforms Farmers

Finastra - Misys Bank Fusion Financial Sector Products & Innovation Core Banking & Infrastructure

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 89

Land Layby Market Products & Innovation Blockchain | Cryptocurrency

Lelapa Fund Market | Businesses Products & Innovation Investment | Financial Management | Crowdfunding

Lendable Financial Sector Products & Innovation Personal Lending | Credit Scoring

Lenddo Financial Sector Products & Innovation Personal Lending | Credit Scoring

LipaLater Consumers Products & Innovation Personal Lending

LoanBee Consumers Products & Innovation Personal Lending

M-Changa Consumers Products & Innovation Crowdfunding

Maxcom Financial Sector Payments Interoperability Payments

MODE - Airtime Credit Consumers Products & Innovation Personal Lending Service

Money Duka Consumers Products & Innovation Insurance | Comparison Sites / Aggregators

Neuro Innova Businesses Products & Innovation POS

Once Sync Limited - Shamba Smallholder Products & Innovation Blockchain | AI Records Farmers | Businesses

Pegasus Technologies Financial Sector Payments Interoperability Payments

Pesabase Consumers Products & Innovation Remittance | Payments

Pesabazaar Consumers Products & Innovation Insurance | Comparison Sites / Aggregators

Pesapal Consumers | Products & Innovation Payments | POS Businesses

90 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT

Popote Pay Businesses Products & Innovation Payments | Payroll & Benefits | Mobile Platforms

Pula Smallholder Products & Innovation Insurance Farmers

Safe Pay Solutions - Merchants Products & Innovation Payments | POS LipaSpot

Save Kubwa Financial Sector Products & Innovation Insurance | Comparison Sites / Aggregators

Segovia Merchants | Products & Innovation | Payments Consumers Payments Systems Development

Tala Consumers Products & Innovation Mobile Wallets | Credit Scoring | Personal Lending

True African Businesses | Products & Innovation Comparison Sites / Consumers Aggregators

Uba Pesa Limited Consumers Products & Innovation Personal Lending

Umati Capital Businesses Products & Innovation MSME Lending

Wayawaya Consumers Products & Innovation Mobile Wallets | Digital Banking | Payments | Remittance

Wazinsure Financial Sector | Products & Innovation Insurance | Data Consumers Management & Big Data

WeCashUp Businesses Products & Innovation Payments

Zuricap MSMEs Products & Innovation MSME Lending

Government Bodies

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 91

Popote Pay Businesses Products & Innovation Payments | Payroll & Benefits | Mobile Platforms

Pula Smallholder Products & Innovation Insurance Farmers

Safe Pay Solutions - Merchants Products & Innovation Payments | POS LipaSpot

Save Kubwa Financial Sector Products & Innovation Insurance | Comparison Sites / Aggregators

Segovia Merchants | Products & Innovation | Payments Consumers Payments Systems Development

Tala Consumers Products & Innovation Mobile Wallets | Credit Scoring | Personal Lending

True African Businesses | Products & Innovation Comparison Sites / Consumers Aggregators

Uba Pesa Limited Consumers Products & Innovation Personal Lending

Umati Capital Businesses Products & Innovation MSME Lending

Wayawaya Consumers Products & Innovation Mobile Wallets | Digital Banking | Payments | Remittance

Wazinsure Financial Sector | Products & Innovation Insurance | Data Consumers Management & Big Data

WeCashUp Businesses Products & Innovation Payments

Zuricap MSMEs Products & Innovation MSME Lending

Government Bodies

Capital Markets Authority - Market Financial Sector - CMA Regulatory Sandbox Development

Central Bank of Kenya Market Research & Evaluations - 92

Central Bank of Kenya - M- Consumers | Market Products & Innovation - Akiba

EAC Financial Sector Financial Sector Regional Integration | - Development and Financial Sector Regionalization Project Development (FSDRP)

Government of Kenya - General Strategy | Advisory, - Huduma Namba 'a National Advocacy & Coordination Integrated identity Management System

Government of Kenya - General Strategy | Advisory, - Vision 2030 Advocacy & Coordination

Kenya Revenue Authority - General Products & Innovation Payments iTax

Kenya Revenue Authority - Consumers Products & Innovation - KRA M-Service

Kenyan Government - Consumers Products & Innovation Government eCitizen platform & KRA Payments Mobile Payments (mService)

Kenyan Government - Global Financial Sector | Products & Innovation | - FinTech Hackcelerator / Consumers | Financial Literacy National Payments System / Women FinAccess Surveys

Ministry of ICT Consumers Products & Innovation -

National Hospital Insurance Consumers Products & Innovation Insurance Fund - Linda Mama / Lipa Na Mpesa

National Social Security Employers | Products & Innovation Government Fund (NSSF) Consumers Payments

SASRA (SACCO Societies Financial Sector Policy, Regulation & - Regulatory Authority) Supervision

92 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT

Microfinance Institutions

Arc Finance Consumers | Products & Innovation Personal Lending | MSMEs MSME Lending

ASA International Consumers | Products & Innovation Personal Lending | MSMEs MSME Lending

Caritas Microfinance Bank Consumers | Products & Innovation Personal Lending | Limited MSMEs MSME Lending

Century Microfinance Bank Consumers | Products & Innovation Personal Lending | MSMEs MSME Lending

Choice Microfinance Bank Consumers | Products & Innovation Personal Lending | Limited MSMEs MSME Lending

Daraja Microfinance Bank Consumers | Products & Innovation Personal Lending | Limited MSMEs MSME Lending

Faulu Microfinance Consumers | Products & Innovation Personal Lending | MSMEs MSME Lending

FinCredit Consumers | Products & Innovation Personal Lending | MSMEs MSME Lending

Five Talents Consumers | Products & Innovation Personal Lending | MSMEs MSME Lending

Kenya Women Finance Trust Consumers | Products & Innovation Personal Lending | (KWFT) MSMEs MSME Lending

Key Microfinance Bank Consumers | Products & Innovation Personal Lending | (Remu) MSMEs MSME Lending

Letshego Kenya Limited Consumers | Products & Innovation Personal Lending | MSMEs MSME Lending

Maisha Microfinance Bank Consumers | Products & Innovation Personal Lending | Limited MSMEs MSME Lending

Momentum Credit Consumers | Products & Innovation Personal Lending | MSMEs MSME Lending

Musoni Microfinance Consumers | Products & Innovation Personal Lending | Institution MSMEs MSME Lending

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 93

Opportunity International Consumers | Products & Innovation Personal Lending | Kenya MSMEs MSME Lending

Platinum Credit Consumers | Products & Innovation Personal Lending | MSMEs MSME Lending

Rafiki Microfinance Bank Consumers | Products & Innovation Personal Lending | MSMEs MSME Lending

SMEP Deposit Taking Consumers | Products & Innovation Personal Lending | Microfinance Limited MSMEs MSME Lending

Stromme Microfinance East Consumers | Products & Innovation Personal Lending | Africa MSMEs MSME Lending

SUMAC Consumers | Products & Innovation Personal Lending | MSMEs MSME Lending

U&I Deposit Taking Consumers | Products & Innovation Personal Lending | Microfinance Limited MSMEs MSME Lending

Uwezo Microfinance Bank Consumers | Products & Innovation Personal Lending | MSMEs MSME Lending

VisionFund Kenya Consumers | Products & Innovation Personal Lending | MSMEs MSME Lending

Women's Microfinance Consumers | Products & Innovation Personal Lending | Initiative MSMEs MSME Lending

Mobile Money Operators

Airtel Money (Airtel) Consumers Products & Innovation Mobile Platforms

Equitel (Equity Bank) Consumers Products & Innovation Mobile Platforms

M-Pesa (Vodacom) Consumers Products & Innovation Mobile Platforms

T-Kash (Telkom) Consumers Products & Innovation Mobile Platforms

Mobile Network Operators

Airtel Consumers Products & Innovation -

Jamii Telecommunications Consumers Products & Innovation -

Safaricom Consumers Products & Innovation -

Telkom Kenya Consumers Products & Innovation -

Money Transfer Operators 95 Azimo Consumers Products & Innovation Remittance

94 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT Boss Revolution Consumers Products & Innovation Remittance

Boxy Pay Consumers Products & Innovation Remittance

Chipper Consumers Products & Innovation Remittance

Dahabsiil Consumers Products & Innovation Remittance

Exchange4Free Consumers Products & Innovation Remittance

Flex Money Consumers Products & Innovation Remittance

Globalwebpay Consumers Products & Innovation Remittance

Lycaremit Consumers Products & Innovation Remittance

MoneyGram Consumers Products & Innovation Remittance

MuheCash Consumers Products & Innovation Remittance

Pay2Global Consumers Products & Innovation Remittance

Paysend Consumers Products & Innovation Remittance

Remit Consumers Products & Innovation Remittance

Remitly Consumers Products & Innovation Remittance

RIA Money Transfer Consumers Products & Innovation Remittance

Rocket Remit Consumers Products & Innovation Remittance

Sendmonex Consumers Products & Innovation Remittance

Sendmoney24 Consumers Products & Innovation Remittance

Sendvalu Consumers Products & Innovation Remittance

Sendwave Consumers Products & Innovation Remittance

Shift Consumers Products & Innovation Remittance

Telkom Kenya Consumers Products & Innovation -

Money Transfer Operators

Azimo Consumers Products & Innovation Remittance

Boss Revolution Consumers Products & Innovation Remittance

Boxy Pay Consumers Products & Innovation Remittance

Chipper Consumers Products & Innovation Remittance

Dahabsiil Consumers Products & Innovation Remittance

Exchange4Free Consumers Products & Innovation Remittance

Flex Money Consumers Products & Innovation Remittance

Globalwebpay Consumers Products & Innovation Remittance

Lycaremit Consumers Products & Innovation Remittance

MoneyGram Consumers Products & Innovation Remittance

MuheCash Consumers Products & Innovation Remittance

Pay2Global Consumers Products & Innovation Remittance

Paysend Consumers Products & Innovation Remittance

Remit Consumers Products & Innovation Remittance

Remitly Consumers Products & Innovation Remittance

RIA Money Transfer Consumers Products & Innovation Remittance

Rocket Remit Consumers Products & Innovation Remittance

Sendmonex Consumers Products & Innovation Remittance

Sendmoney24 Consumers Products & Innovation Remittance

Sendvalu Consumers Products & Innovation Remittance

Sendwave Consumers Products & Innovation Remittance

Shift Consumers Products & Innovation Remittance

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 95

Skrill Consumers Products & Innovation Remittance

Small World Consumers Products & Innovation Remittance

TalkRemit Consumers Products & Innovation Remittance

Tamsey Consumers Products & Innovation Remittance

Transfast Consumers Products & Innovation Remittance

Transfer Galaxy Consumers Products & Innovation Remittance

TransferWise Consumers Products & Innovation Remittance

UBA International Money Consumers Products & Innovation Remittance Transfer

Upesi Consumers Products & Innovation Remittance

Western Union Consumers Products & Innovation Remittance

WorldRemit Consumers Products & Innovation Remittance

XE Money Transfer Consumers Products & Innovation Remittance

Xend Consumers Products & Innovation Remittance

Xoom Consumers Products & Innovation Remittance

Xpress money transfer Consumers Products & Innovation Remittance

Not-for-Profit and International Organisations

Aga Khan Foundation Financial Sector Financial Sector - Development

Bill and Melinda Gates General Funding & Investment | - Foundation - Financial Advisory, Advocacy & Services for the Poor Coordination programme

BSR - HERproject Consumers | Capacity Building - Women

CARE International - Women Consumers | Capacity Building - and Girls Economic Women Empowerment programme

96 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT

Center for Financial Inclusion General Advisory, Advocacy & - - Africa Board Fellowship Coordination | Capacity Program Building

FINCA Ventures Consumers | Products & Innovation | - MSMEs Funding & Investment

FSD Kenya Market Financial Sector - Development

Global Communities - MSMEs Products & Innovation MSME Lending | Access to finance for Personal Lending agribusiness

Grameen Foundation - Smallholder Products & Innovation MSME Lending | Digital lending platform for Farmers Personal Lending smallholder farmers

Habitat for Humanity - Consumers Products & Innovation Personal Lending Housing finance

Hand in Hand Eastern Africa MSMEs Capacity Building - - Microentrepreneur Training

Innovations for Poverty General Policy, Regulation & - Action Supervision

International Rescue Refugees Products & Innovation - Committee - Cash relief

Joyful Women Organization Women Products & Innovation Community Banking (JOYWO) - Table banking

K-Rep Development Agency Consumers | Products & Innovation - - Micro and Small Enterprise MSMEs Development

Mastercard Foundation Market | Consumers Products & Innovation Payments

Mennonite Economic MSMEs Products & Innovation - Development Association (MEDA) - Supply chain finance for SMEs"

MercyCorps - Agricultural Smallholder Products & Innovation MSME Lending finance Farmers

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 97

One Acre Fund - Smallholder Smallholder Products & Innovation MSME Lending finance Farmers

Opportunity International - Consumers Products & Innovation | - Financial literacy training, Financial Literacy education loan products, mobile banking

Oxfam - Taxes for essential Consumers Products & Innovation - services

USAID - Finance for SMEs in MSMEs Products & Innovation MSME Lending Kenya

USAID/DAI - East Africa Market Market Development - Trade and Investment Hub

USAID/DAI - Financial Consumers | Products & Innovation MSME Lending | Inclusion for Rural MSMEs Personal Lending Microenterprises

World Bank - Universal Consumers Products & Innovation - Financial Access (UFA) 2020

World Relief - Microfinance, Consumers Products & Innovation MSME Lending | Savings for Life Personal Lending

World Vision - Livelihoods Consumers Products & Innovation Community Banking and Resilience programme

World Vision - Savings for Consumers Products & Innovation Savings Transformation programme

Other Financial Services

Copia - eCommerce for Consumers Products & Innovation Payments underserved consumers

Financial Access Financial Sector | Advisory, Advocacy & - Market | Businesses Coordination

Jubilee Insurance Group - J- Consumers Products & Innovation Insurance Inue

Mastercard - Konnect Consumers Products & Innovation MSME Lending

Mastercard - Kupaa Families | Students | Products & Innovation Payments Government

98 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT

Mastercard - Mastercard Smallholder Products & Innovation MSME Lending Farmer Network Farmers

Mastercard - MasterPass QR Merchants Products & Innovation Payments

Mastercard Lab for Financial Consumers Products & Innovation - Inclusion

Tech Hubs / Fintech Hubs

@iBiz Africa Market Products & Innovation Incubator

C4D Lab Market Products & Innovation R&D and Startup Incubation

Gearbox Market Products & Innovation Hardware Entrepreneurship Incubator growthafrica Market Products & Innovation Accelerator iHub Market Products & Innovation Support system for ICT-focused Entrepreneurs

MEST Market Products & Innovation Entrepreneurial training, seed fund, tech incubator

Metta Market Products & Innovation Coworking Space

MHub Market Products & Innovation Incubator

Microsoft Market Products & Innovation Microsoft Development Center

Nailab Accelerator Market Products & Innovation Incubator

Nest Market Products & Innovation Metta

The Twig Market Products & Innovation Coworking Space

Villgro Market Products & Innovation Incubator

Women in Tech Incubator Market | Women Products & Innovation Female-led entrepreneurial teams incubator

100

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 99 Tanzania Tanzania

Organisation / Initiative Target Target Area Financial Population Services

Associations

African Confederation of Financial Advisory, Advocacy & - Cooperative Savings and Sector Coordination | Financial Sector Credit Association Development (ACCOSCA)

Alliance for Financial General Policy, Regulation & Supervision - Inclusion - African Financial Inclusion Policy Initiative

East Africa Grain Council Market Market Development | Advisory, - (EACG) - G-Soko platform Advocacy & Coordination

East Africa Venture Capital Market Market Development | Advisory, - Association Advocacy & Coordination | Funding & Investment

GSMA Sub Saharan Africa Market Market Development -

Savings and Credit Co- Financial Advisory, Advocacy & - operative Union League of Sector Coordination | Financial Sector Tanzania (SCCULT) Ltd. Development

Tanzania Association of Financial Advisory, Advocacy & - Microfinance Institutions Sector Coordination | Financial Sector Development

Tanzania Informal Financial Advisory, Advocacy & - Microfinance Association of Sector Coordination | Financial Sector Practitioners (TIMAP) Development

Women's World Banking Women | Products & Innovation - Consumers | Businesses

Banks

AccessBank Tanzania Consumers | Products & Innovation General Banking MSMEs

100 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT

102

Tanzania

Organisation / Initiative Target Target Area Financial Population Services

Associations

African Confederation of Financial Advisory, Advocacy & - Cooperative Savings and Sector Coordination | Financial Sector Credit Association Development (ACCOSCA)

Alliance for Financial General Policy, Regulation & Supervision - Inclusion - African Financial Inclusion Policy Initiative

East Africa Grain Council Market Market Development | Advisory, - (EACG) - G-Soko platform Advocacy & Coordination

East Africa Venture Capital Market Market Development | Advisory, - Association Advocacy & Coordination | Funding & Investment

GSMA Sub Saharan Africa Market Market Development -

Savings and Credit Co- Financial Advisory, Advocacy & - operative Union League of Sector Coordination | Financial Sector Tanzania (SCCULT) Ltd. Development

Tanzania Association of Financial Advisory, Advocacy & - Microfinance Institutions Sector Coordination | Financial Sector Development

Tanzania Informal Financial Advisory, Advocacy & - Microfinance Association of Sector Coordination | Financial Sector Practitioners (TIMAP) Development

Women's World Banking Women | Products & Innovation - Consumers | Businesses

Banks

AccessBank Tanzania Consumers | Products & Innovation General Banking MSMEs

Akiba Commercial Bank Consumers | Products & Innovation General Banking MSMEs

Amana Bank Consumers | Products & Innovation General Banking MSMEs 102

Azania Bank Consumers | Products & Innovation General Banking MSMEs

BancABC Consumers | Products & Innovation General Banking MSMEs

Bank of Africa Tanzania Consumers | Products & Innovation General Banking MSMEs

Bank of Baroda Tanzania Consumers | Products & Innovation General Banking Limited MSMEs

Barclays Bank of Tanzania Consumers | Products & Innovation General Banking MSMEs

Citibank Consumers | Products & Innovation General Banking MSMEs

Commercial Bank of Africa Consumers | Products & Innovation General Banking (Tanzania) MSMEs

CRDB Bank Plc. Consumers | Products & Innovation General Banking MSMEs

DCB Commercial Bank Plc Consumers | Products & Innovation General Banking MSMEs

Diamond Trust Bank Consumers | Products & Innovation General Banking Tanzania MSMEs

Ecobank Tanzania Consumers | Products & Innovation General Banking MSMEs

Equity Bank (Tanzania) Consumers | Products & Innovation General Banking MSMEs

Exim Bank (Tanzania) Consumers | Products & Innovation General Banking MSMEs

FBME Bank Consumers | Products & Innovation General Banking MSMEs

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 101

103

First National Bank of Consumers | Products & Innovation General Banking Tanzania MSMEs

Guaranty Trust Bank Consumers | Products & Innovation General Banking (Tanzania) Limited MSMEs

Habib African Bank Consumers | Products & Innovation General Banking MSMEs

I&M Bank (Tanzania) Consumers | Products & Innovation General Banking MSMEs

International Commercial Consumers | Products & Innovation General Banking Bank MSMEs

Kenya Commercial Bank Consumers | Products & Innovation General Banking MSMEs

Kilimanjaro Cooperative Consumers | Products & Innovation General Banking Bank MSMEs

Maendeleo Bank Plc Consumers | Products & Innovation General Banking MSMEs

Mkombozi Commercial Bank Consumers | Products & Innovation General Banking Plc MSMEs

Mwalimu Commercial Bank Consumers | Products & Innovation General Banking MSMEs

Mwanga Rural Community Consumers | Products & Innovation General Banking Bank Limited MSMEs

National Bank of Commerce Consumers | Products & Innovation General Banking (Tanzania) MSMEs

NIC Bank Tanzania Consumers | Products & Innovation General Banking MSMEs

People's Bank of Zanzibar Consumers | Products & Innovation General Banking MSMEs

Stanbic Bank Tanzania Consumers | Products & Innovation General Banking Limited MSMEs

Standard Chartered Bank Consumers | Products & Innovation General Banking MSMEs

104

102 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT

Tanzania Agricultural Consumers | Products & Innovation General Banking Development Bank MSMEs

Tanzania Mortgage Consumers | Products & Innovation General Banking Refinance Company MSMEs

Tanzania Postal Bank Plc Consumers | Products & Innovation General Banking MSMEs

TIB Corporate Bank Limited Consumers | Products & Innovation General Banking MSMEs

TIB Development Bank Consumers | Products & Innovation General Banking MSMEs

TPB Bank Plc Consumers | Products & Innovation General Banking MSMEs

UBL Bank Tanzania Limited Consumers | Products & Innovation General Banking MSMEs

United Bank for Africa Consumers | Products & Innovation General Banking (Tanzania) MSMEs

Fintech Companies

Africa's Talking Businesses Products & Innovation Comparison Sites / Aggregators

Arifu Businesses | Products & Innovation Financial Advice & Consumers Education

BCX Tanzania Financial Payments Interoperability Core Banking & Sector Infrastructure | Payments

Belfrics Consumers Products & Innovation Blockchain | Cryptocurrency

Beyonic Businesses Products & Innovation Comparison Sites / Aggregators

Binance Consumers Products & Innovation Blockchain | Cryptocurrency

BitPesa Businesses Products & Innovation | Payments Remittance | Interoperability Currency

105

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 103

Exchange / FX | API

Branch Consumers Products & Innovation Mobile Wallets | Credit Scoring | Personal Lending

CarePay - M-TIBA Consumers Products & Innovation Insurance

Click Pesa Businesses Products & Innovation Payments | POS | Payroll & Benefits

Craft Silicon Consumers Products & Innovation Core Banking & Infrastructure

DPO Group (PayFast) Consumers Products & Innovation Mobile Platforms

EdgePoint Company - Consumers Products & Innovation Insurance bimaAFYA micro health insurance

First Access Financial Products & Innovation Data Management Sector & Big Data

Humaniq Businesses | Blockchain | Government | Cryptocurrency NGOs | Community Groups

ICT Pack Businesses Products & Innovation Core Banking & Infrastructure

JUMO Consumers | Products & Innovation Personal Lending | Women Savings | Insurance | Core Banking & Infrastructure

Juntos Financial Products & Innovation AI Sector

Lendable Consumers Products & Innovation Personal Lending | MSME Lending | Credit Scoring

Maxcom Financial Payments Interoperability Payments Sector

106

104 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT

Millicom Consumers Products & Innovation | Payments Payments Interoperability

Money Duka Consumers Products & Innovation Insurance | Comparison Sites / Aggregators

Nala Consumers Products & Innovation Payments | Mobile Wallets

PayChap Consumers Products & Innovation Mobile Platforms

Pesapal Consumers | Products & Innovation Payments | POS Businesses

Pula Smallholder Products & Innovation Insurance Farmers

Segovia Market | Products & Innovation | Payments Payments Merchants Interoperability | Infrastructure

Selcom Businesses | Products & Innovation | Payments Payments | POS Merchants Interoperability

Singo Africa - Amala App Financial Products & Innovation Core Banking & Suite Sector Infrastructure

Tala Consumers Products & Innovation Personal Lending | Credit Scoring

WeCashUp Merchants | Products & Innovation Payments | Businesses Remittance

Government Bodies

Bank of Tanzania - National General Strategy | Advisory, Advocacy & - Financial Consumer Coordination Protection Framework

Central Bank of Tanzania - General Strategy | Advisory, Advocacy & - National Financial Inclusion Coordination Framework

Commission on Science and Market Research & Evaluations - Technology

107

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 105

Millicom Consumers Products & Innovation | Payments Payments Interoperability

Money Duka Consumers Products & Innovation Insurance | Comparison Sites / Aggregators

Nala Consumers Products & Innovation Payments | Mobile Wallets

PayChap Consumers Products & Innovation Mobile Platforms

Pesapal Consumers | Products & Innovation Payments | POS Businesses

Pula Smallholder Products & Innovation Insurance Farmers

Segovia Market | Products & Innovation | Payments Payments Merchants Interoperability | Infrastructure

Selcom Businesses | Products & Innovation | Payments Payments | POS Merchants Interoperability

Singo Africa - Amala App Financial Products & Innovation Core Banking & Suite Sector Infrastructure

Tala Consumers Products & Innovation Personal Lending | Credit Scoring

WeCashUp Merchants | Products & Innovation Payments | Businesses Remittance

Government Bodies

Bank of Tanzania - National General Strategy | Advisory, Advocacy & - Financial Consumer Coordination Protection Framework

Central Bank of Tanzania - General Strategy | Advisory, Advocacy & - National Financial Inclusion Coordination Framework

Commission on Science and Market Research & Evaluations - Technology

EAC Financial Sector Financial Regional Integration | Financial - Development and Sector Sector Development Regionalization Project (FSDRP)

Global Partnership for General Advisory, Advocacy & - 107 Financial Inclusion - G20 Coordination Financial Inclusion Action Plan

Government of Tanzania - General Products & Innovation Government Government e-Payment Payments Gateway

Ministry of Finance and General Strategy | Advisory, Advocacy & - Economic Affairs - National Coordination Strategy for Growth and Reduction of Poverty"

Ministry of ICT General Capacity Building | Advisory, - Advocacy & Coordination

National Council for General Strategy | Advisory, Advocacy & - Financial Inclusion Coordination

Parliament General Policy, Regulation & Supervision -

Tanzania National Council General Strategy | Advisory, Advocacy & - for Financial Inclusion - Coordination National Financial Education Framework 2016-2020

Tanzania National NGO NGOs Strategy | Advisory, Advocacy & - Coordination Coordination

Tanzania Social Action Fund Consumers | Products & Innovation - Market

The Revolutionary General Strategy | Advisory, Advocacy & - Government of Zanzibar - Coordination Zanzibar Strategy for Growth and Reduction of Poverty

Microfinance Institutions 106 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT ACMC Consumers | Products & Innovation Personal Lending | MSMEs MSME Lending

108

EAC Financial Sector Financial Regional Integration | Financial - Development and Sector Sector Development Regionalization Project (FSDRP)

Global Partnership for General Advisory, Advocacy & - Financial Inclusion - G20 Coordination Financial Inclusion Action Plan

Government of Tanzania - General Products & Innovation Government Government e-Payment Payments Gateway

Ministry of Finance and General Strategy | Advisory, Advocacy & - Economic Affairs - National Coordination Strategy for Growth and Reduction of Poverty"

Ministry of ICT General Capacity Building | Advisory, - Advocacy & Coordination

National Council for General Strategy | Advisory, Advocacy & - Financial Inclusion Coordination

Parliament General Policy, Regulation & Supervision -

Tanzania National Council General Strategy | Advisory, Advocacy & - for Financial Inclusion - Coordination National Financial Education Framework 2016-2020

Tanzania National NGO NGOs Strategy | Advisory, Advocacy & - Coordination Coordination

Tanzania Social Action Fund Consumers | Products & Innovation - Market

The Revolutionary General Strategy | Advisory, Advocacy & - Government of Zanzibar - Coordination Zanzibar Strategy for Growth and Reduction of Poverty

Microfinance Institutions

ACMC Consumers | Products & Innovation Personal Lending | MSMEs MSME Lending

African Microfinance Consumers | Products & Innovation Personal Lending | MSMEs MSME Lending

ASA International Consumers | Products & Innovation Personal Lending | MSMEs MSME Lending 108

Bogach Finance Ltd Consumers | Products & Innovation Personal Lending | MSMEs MSME Lending

BRAC Consumers | Products & Innovation Personal Lending | MSMEs MSME Lending

Ecumenical Church Loan Consumers | Products & Innovation Personal Lending | Fund Tanzania (ECLOF) MSMEs | MSME Lending Smallholder Farmers

EFC Tanzania Microfinance Consumers | Products & Innovation Personal Lending | Bank MSMEs MSME Lending

Enterprise Finance Limited Consumers | Products & Innovation Personal Lending | MSMEs MSME Lending

Fanikiwa Consumers | Products & Innovation Personal Lending | MSMEs | MSME Lending Public Servants

Finca Microfinance Bank Consumers | Products & Innovation Personal Lending | MSMEs MSME Lending

Five Talents Consumers | Products & Innovation Personal Lending | MSMEs MSME Lending

Hakika Consumers | Products & Innovation Personal Lending | MSMEs MSME Lending

Jumuiya Ya Changamoto Consumers Products & Innovation Personal Lending | MSME Lending

Letshego Bank Tanzania Consumers | Products & Innovation Personal Lending | MSMEs MSME Lending

National Microfinance Bank Consumers | Products & Innovation Personal Lending | MSMEs MSME Lending

One Acre Fund Smallholder Capacity Building | Products & Personal Lending | Farmers Innovation MSME Lending

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 109 107

Opportunity International Consumers | Products & Innovation Personal Lending | Tanzania MSMEs | MSME Lending Smallholder Farmers

Planet Microfinance Fund Consumers | Products & Innovation Personal Lending | MSMEs MSME Lending

Platinum Credit Consumers | Products & Innovation Personal Lending | MSMEs MSME Lending

Small Industries Consumers | Products & Innovation | Financial Personal Lending | Development Organisation MSMEs Literacy MSME Lending

Stromme Microfinance East Financial Products & Innovation Personal Lending | Africa Sector MSME Lending

Tujijenge Tanzania Ltd Consumers | Products & Innovation Personal Lending | MSMEs MSME Lending

Tunakopesha Consumers | Products & Innovation Personal Lending | MSMEs MSME Lending

Victoria Finance Smallholder Products & Innovation Personal Lending | Farmers MSME Lending

VisionFund Consumers | Products & Innovation Personal Lending | MSMEs MSME Lending

Women Advanced Trust Consumers | Products & Innovation Personal Lending | (WAT-Settlement) MSMEs MSME Lending

Women Empowerment Consumers | Products & Innovation Personal Lending | Development Agency MSMEs | MSME Lending Women

Women's Microfinance Consumers | Products & Innovation Personal Lending | Initiative MSMEs | MSME Lending Women

Yetu Microfinance Consumers | Products & Innovation Personal Lending | MSMEs MSME Lending

Zane Finance Consumers | Products & Innovation Personal Lending | MSMEs | MSME Lending Private Employees | Public Servants

110

108 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT

Mobile Money Operators

Airtel Money (Airtel) Consumers Products & Innovation Mobile Platforms

EzyPesa (Zantel) Consumers Products & Innovation Mobile Platforms

HaloPesa (Halotel) Consumers Products & Innovation Mobile Platforms

M-Pawa (Vodacom) Consumers Products & Innovation Mobile Platforms

M-Pesa (Vodacom) Consumers Products & Innovation Mobile Platforms

TigoPesa (Tigo) Consumers Products & Innovation Mobile Platforms

TTCL (T-Pesa) Consumers Products & Innovation Mobile Platforms

Mobile Network Operators

Airtel Consumers Products & Innovation -

Halotel Consumers Products & Innovation -

Tigo Consumers Products & Innovation -

TTCL Consumers Products & Innovation -

Vodacom Consumers Products & Innovation -

Zantel Consumers Products & Innovation -

Money Transfer Operators

Azimo Consumers Products & Innovation Remittance

Boss Revolution Consumers Products & Innovation Remittance

Chipper Consumers Products & Innovation Remittance

Dahabsiil Consumers Products & Innovation Remittance

Flex Money Consumers Products & Innovation Remittance

Globalwebpay Consumers Products & Innovation Remittance

111

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 109

MoneyGram Consumers Products & Innovation Remittance

MuheCash Consumers Products & Innovation Remittance

Remitly Consumers Products & Innovation Remittance

RIA Money Transfer Consumers Products & Innovation Remittance

Rocket Remit Consumers Products & Innovation Remittance

Sendmonex Consumers Products & Innovation Remittance

Sendmoney24 Consumers Products & Innovation Remittance

Sendvalu Consumers Products & Innovation Remittance

Sendwave Consumers Products & Innovation Remittance

Small World Consumers Products & Innovation Remittance

Tamsey Consumers Products & Innovation Remittance

Transfer Galaxy Consumers Products & Innovation Remittance

TransferWise Consumers Products & Innovation Remittance

Upesi Consumers Products & Innovation Remittance

Western Union Consumers Products & Innovation Remittance

WorldRemit Consumers Products & Innovation Remittance

Xend Consumers Products & Innovation Remittance

Xoom Consumers Products & Innovation Remittance

Xpress money transfer Consumers Products & Innovation Remittance

Not-for-Profit and International Organisations

ActionAid Tanzania Women Consumers -

Aga Khan Foundation Financial Financial Sector Development - Sector Bill and Melinda Gates General Funding & Investment | Advisory, - Foundation - Financial Advocacy & Coordination Services for the Poor

112

110 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT

programme

CARE International Market | Market Development - Businesses | Consumers

Catholic Relief Services Consumers Products & Innovation Savings | Community Banking

Center for Financial General Advisory, Advocacy & - Inclusion - Africa Board Coordination | Capacity Building Fellowship Program

CESOSACO Market | Market Development - Women | Youth

DAI - Access to finance Consumers | Market Development | Products & - Smallholder Innovation Farmers

FSD Tanzania - Gates grant Women Products & Innovation Government for gender initiatives Payments

Gates Foundation General Funding & Investment -

Global Communities Market Market Development -

Grameen Foundation - Smallholder Products & Innovation Payments Bundle agricultural Farmers information and financial services

Habitat for Humanity - Families | Consumers - Makazi Bora housing finance Consumers

113

EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT 111

Innovations for Poverty General Research & Evaluations - Action

International Fund for Consumers | Market Development - Agricultural Development Smallholder (IFAD) Farmers | Market

Landesa Rural Development General Products & Innovation - Institute - Responsible Investments in Property and Land, Tanzania Guidebook

MasterCard Foundation - Consumers Products & Innovation Savings Savings at the Frontier Project

Mennonite Economic MSMEs Products & Innovation MSME Lending Development Association (MEDA) - Supply chain finance for SMEs

MercyCorps - Agricultural Smallholder Capacity Building | Products & - finance Farmers Innovation

Rockefeller Philanthropy Market Infrastructure | Payments Payments Advisors Interoperability

Trias - Financial training for Consumers Financial Literacy - semi-nomadic livestock holders

United Nations Capital Consumers | Products & Innovation Savings Development Fund (UNCDF) Women - Savings (MicroLead)

USAID/DAI - East Africa Market Market Development - Trade and Investment Hub

World Bank Group - Consumers Products & Innovation - Universal Financial Access 2020

World Vision - Capital for Families | Products & Innovation MSME Lending entrepreneurs Consumers

Other Financial Services

Alliance Life Insurance Consumers Products & Innovation Insurance

114

112 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT