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Case Study Category: Sustainable societies

In today’s digital era, the tech industry stands as a cornerstone of economic development and innovation. Yet, it grapples with a significant challenge—the underrepresentation of women in digital and IT sectors. Despite comprising 13% of STEM graduates in South Africa, women face post-graduation hurdles in accessing digital exposure and career guidance, leading to a stark gender gap in technology-related fields. Only 23% of tech jobs in South Africa are held by women out of 236 000 available ICT & Tech roles, highlighting the urgent need for industry intervention to bridge this representation gap.

Angie Maloka, Senior Manager of Youth & Women Programmes at the MTN SA Foundation, highlights the importance of addressing this disparity, stating, “Removing barriers hindering women from entering STEM fields is crucial to closing South Africa’s ICT skills gap and reducing high unemployment rates.”

In response, the MTN South Africa Foundation launched the MTN Women in Digital Business Challenge, committing R1 million to enable innovation, entrepreneurship, and job creation for women in the digital economy. This initiative, now in its second year, is an extension of MTN’s SME accelerator programs, specifically focusing on fostering an entrepreneurial mindset among women.

The Challenge provides successful candidates with R100 000 each to support their working capital needs, business development, tangible assets, mentorship and access to business-advancing technology and software.

The Women in Digital Business Challenge goes beyond financial support; it creates a supportive ecosystem that nurtures talent, fosters innovation, and cultivates leadership among women in the digital space. A mentorship component pairs participants with seasoned professionals, offering personalised guidance to overcome challenges and seize opportunities. Moreover, comprehensive training equips participants with essential technical and business management skills, essential for navigating the digital landscape successfully.

Networking opportunities provided by the challenge facilitate meaningful connections with peers, industry experts, and potential collaborators, offering invaluable support and access to resources.

The impact of the MTN Women in Digital Business Challenge is evident in the success stories of participants like Mamello Mofokeng, Khathu Maphari, Aasiyah Adams, and Elizabeth Booi.

Following her four-month mentorship journey, Mamello expanded her team and reengineered her sales strategy, resulting in new market opportunities for her business. She also gained exposure and recognition when her success story was featured on Business Day TV to showcase the impact of the Women in Digital Business Challenge.

Khathu used her prize money to rebrand her business and address office aesthetics, compliance, and debt settlement. She has subsequently proposed a teacher training program, demonstrating a strategic expansion of her business’s offerings.

Aasiyah’s company has also grown significantly, with plans to expand into new markets. She is gearing up to teach 4 000 students in various courses, demonstrating substantial scalability and impact following the challenge’s financial and strategic support.

After being selected as a top 10 finalist in the 2023 MTN Women in Digital Business Challenge, Elizabeth’s business has expanded its impact to over 1 000 individuals. She is developing a learning management system and accreditation processes, focusing on empowering women and youth in IT and Data Analytics.

As the MTN Women in Digital Business Challenge continues to grow and evolve, its impact will only continue to expand. By providing women entrepreneurs with the resources, support, and opportunities they need to succeed, MTN is not only empowering individual women but also driving broader social and economic transformation. The challenge serves as a catalyst for change, underscoring our commitment to empowering women, fostering diversity, and building an inclusive digital economy for all.

MTN’s dedication to empowering women extends beyond empowering women in tech to succeed. We are committed to advancing women’s equality and diversity across our operations, promoting an inclusive environment free from gender bias.

Imagine a world where the digital divide no longer separates communities, where every individual has the power of connectivity at their fingertips, regardless of their location. This is the vision that propels MTN’s tireless efforts to extend mobile network coverage deep into rural Africa. 

Sub-Saharan Africa is not only the fastest growing region in the world, but also has the world’s largest population percentage that does not have mobile coverage. Many rural areas in sub-Saharan Africa have no telecom infrastructure or power grid, leaving an estimated 210 million people with no usable mobile network service. 

At MTN, we believe everyone deserves the benefits of a modern connected life. Connectivity more than just a network; it is a lifeline that can change lives. For entrepreneurs, it means reaching online buyers; for farmers, it’s accessing market information; for healthcare workers, it’s calling for urgent help. The potential is immense, but the challenge of reaching all communities is daunting due to the significant costs of erecting mobile towers in an isolated rural context.

That is why MTN Zambia has teamed up with Africa Mobile Network (AMN) to extend mobile network coverage to rural communities across Zambia. AMN’s innovative approach optimises sites for rural environments and harnesses solar power to create self-sustaining stations that bring 2G, 3G, and 4G connectivity to rural villages.  Leveraging the AMN Network-as-a-Service (NaaS) model, MTN is able to reach more remote areas without the need for upfront investment or operational risks. 

In partnership with AMN, we not only establish network infrastructure but also offer heavily subsidised mobile phones to the people living in newly connected villages, ensuring accessibility for all. Additionally, we support the establishment of airtime dealers and mobile money agents, enabling villagers to easily access mobile money services for deposits and withdrawals. 

The impact is palpable. Gertrude Banda from Mawanda Village in Zambia reflects, “A long time ago we used to write letters to Lusaka. Now MTN thought of us and gave us phones so that we can communicate with people in Lusaka. When money comes, we are able to collect from MTN Mobile Money. Things are much easier because of the phones MTN has provided. So we are very grateful to MTN for bringing us phones here in our village.”

Stanley Kaluba, a Clinical Officer in Mawanda, echoes Gertrude’s sentiments: “We use the MTN network to make referrals for patients that need to go to the hospital and to call an ambulance in emergencies. MTN is a very good network, and since the time they installed this tower, it has really helped us.”

But connectivity isn’t just about enabling access to networks and affordable phones; it’s about economic empowerment. David Phiri, a mobile money agent, shares, “People come to my shop to withdraw money or open mobile money accounts. They can buy airtime through MTN MoMo or receive money from Lusaka. There are so many things I am able to do for a living now. I am very thankful.” The benefits of digital transformation extend beyond individuals to entire communities, where daily activities such as transferring money, taking and repaying credit loans, subscribing to an insurance policy, or paying school fees for their children can now be conducted via mobile phones. 

MTN remains deeply committed to playing a transformative role in Africa’s mobile internet revolution.  While the road ahead is filled with challenges, our resolve remains unshaken and we are working hard to close the coverage gap in rural and remote areas. With each village brought online, lives are transformed, communities thrive, and the promise of a more connected Africa becomes a reality.

We know that achieving this, and doing so quickly, would not be possible without the active collaboration of our partners. Each partnership we form, whether with a government, industry peer, innovator, community member, or employee, contributes a unique piece to a tapestry of positive change that transcends individual efforts.  We look forward to continuing to work with all these key role players as we go forward together into the future.

In South Africa, as in many developing nations, access to digital technology remains a hurdle for a large segment of the population, with only 44% owning smartphones in 2023. This stark statistic widens the digital divide, particularly as a result of device affordability issues, limiting South Africa’s full participation in the modern economy. 

The country’s ongoing migration to 4G networks aims to impend 3G and 2G networks by December 2027. Consumers are therefore required to upgrade their devices to those compatible with 4G networks, which can be prohibitively expensive for many individuals and households, particularly those already facing financial constraint. This requires targeted initiatives like device financing to address smartphone access and affordability. “South Africans are leveraging financial inclusion education to embrace improved consumer lending practices, effectively navigating economic challenges by positively utilising credit products and prudently managing debt, leading to recorded improvements in credit scores,” as stated in the TransUnion Credit Landscape report of 2023,which creates an opportunity for successfully rolling out device financing initiatives and addressing the smartphone access gap.

MTN South Africa partnered with the FoneYam device financing programme in 2023, with MTN capturing 37% of device sales through the FoneYam initiative at Pep (a South African low-cost retailer). FoneYam introduces flexible financing options tailored to the needs of low-income consumers ranging from instalment payments spread over flexible periods, with minimal or no interest, making devices more accessible without imposing a significant financial burden on consumers. MTN South Africa plans to partner with co-financing partners to add value to the consumer to increase uptake and promote our customer relationship.

Device financing solutions play a crucial role in narrowing South Africa’s digital divide by addressing affordability issues. These initiatives empower individuals to fully participate in the modern economy, leading to improved connectivity, expanded educational and job opportunities, and enhanced social inclusion. Continued investment in sustainable device financing programmes is key to driving economic growth and societal advancement in South Africa’s digital transformation journey. “Before I got help to buy a phone, I felt a bit left out because I couldn’t afford one. But now, I have the internet all the time, which has changed everything. I can talk to my family whenever I want, look for jobs online and even learn new things. It feels like a whole new world has opened up for me, and I’m really thankful for that.”

MTN Nigeria’s Foundation is delivering essential healthcare through the Y’ello Doctor Medical Intervention Scheme across six states. The Y’ello Doctor initiative provides free primary healthcare services to individuals in underserved communities in Lagos, Kano, Kwara, Gombe, Anambra, and Rivers State, through a mobile medical clinic platform. The initiative focuses on information dissemination through health talks, diagnosis and treatment of common communicable and non-communicable diseases such as malaria, pneumonia and sexually transmitted infections, screening for tuberculosis, blood pressure, diabetes and referral of patients to secondary healthcare facilities. This initiative was carried out in collaboration with participating States Ministry of Health and the National Primary Health Care Development Agency with emphasis on women and children.

Dr David Edwin, leading the Gombe team, expresses gratitude for the opportunity and highlights the project’s profound impact. “The Y’ello Doctor project left an indelible mark on the people of Gombe. It brought medical care to remote areas where doctors were scarce; a cause close to my heart having grown up in a village without medical services. This initiative delved deep into the lives of beneficiaries, offering services ranging from wellness checks to maternal kits and screenings. Through Y’ello Doctor, I honed my skills in community entry, team and stakeholder management, areas I hadn’t explored before. It was a departure from my work in government hospitals, yet immensely fulfilling, given the vast number of people we reached. Particularly gratifying was witnessing people receive medical care for the first time.”

The leadership of the MTN Group kickstarted the year with our two-day annual virtual Global Leadership Gathering. The gathering provides an opportunity for us to reflect on the progress we have made to deliver on our ambitions, to recalibrate where necessary, and renew our commitment to lead digital solutions for Africa’s progress.

A future-fit business thrives when it can efficiently run world-class operations, adapt, and transform with the changing times, and constantly reinvent itself to remain relevant and sustainable. MTN has a tremendous responsibility to drive digital and financial inclusion in the communities we operate in. We have challenged ourselves to be bold and seize the opportunity to transform Africa’s future.

MTN Group President and CEO, Ralph Mupita, said: “MTN has a vision of providing leading digital solutions to support Africa’s progress, and we took very meaningful steps in realising this vision. The work we are doing is important for the progress of the communities we live and operate in. If Africa is to economically ‘leap-frog’, while delivering the benefits of a modern connected life to its people, MTN would have played a significant role in that progress.”

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2021 achievements

It is important to highlight a few things as we reflect on the accolades received and the many accomplishments achieved in the previous year.

MTN started 2021 by stepping forward as the first private sector company to work with the African Union and contribute to securing much-needed vaccines for the African continent.

We have been recognised as one of the best companies to work for globally, following inclusion in the 2021 Forbes list of World’s Best Employers, while Fortune honoured the Group in its list of companies Changing the World. 

The work we are doing around reducing our carbon emissions, driving financial inclusion, reducing the cost to communicate, improving diversity in the workplace and digital human rights has been acknowledged by international ratings agencies such as the FTSE and Sustainalytics.

We have retained our Net Promoter Score leadership positions in 15 markets, which is a clear indicator of success and how we serve our customers. To add to this, our share price has soared, up 184% when measured from the start to end of the year.

Progress on Ambition 2025

Our Ambition 2025 Strategy is focused on driving growth through building the largest and most valuable platform business with a clear focus on Africa. To this extent, we are reinventing ourselves for a sustainable future to the benefit of our customers.

According to Mupita: “The contribution of MTNers in the progress the company made, was achieved through a most challenging time, and I know you all dug deep and tapped into individual and collective reservoirs of strength, grit, and determination.”

“Our vital behaviours, values and culture provided us with a firm foundation of service, excellence and high-performance. We are well on the way to deliver on our strategic intents, as defined by our Ambition 2025 Strategy and the commitments we have made to our stakeholders.” 

The successful execution of our Ambition 2025 Strategy will be defined by the operating structure and leadership team driving that strategy.

Operating structure and leadership changes

To ensure the Group is structured in a manner that drives delivery, we announced a new leadership structure and team in December 2021. In line with Ambition 2025’s strategic priorities, the Group has welcomed the following individuals to the ExCo team:

Several changes were introduced to MTN’s operating structure and existing ExCo members have taken on new roles with expanded responsibilities. A Markets cluster was created, combining West and Central Africa (WECA), South and East Africa (SEA) and Middle East and North Africa (MENA) under one leadership. Ebenezer Asante is assuming the new role of Senior Vice President (SVP) of Markets and part of his focus will be to ensure seamless execution of the structural separation of the fintech and infraco assets within the Markets portfolio.

A decision was made to separate digital from the fintech priorities to enhance the capacity to accelerate the growth of MTN’s fintech and other platforms. In order to remain the leader in delivering financial inclusion in Africa, we need focus, agility, and pace in fintech. With the simplified structure under the leadership of Serigne Dioum as Group Chief Fintech Officer, we are set to drive the business forward at a faster pace.

MTN Group COO Jens Schulte-Bockum will drive an acceleration of digital, infraco, enterprise services, network as a service and Chenosis platforms.  Jens and Serigne will work together closely to ensure strategic coherence and execution of both fintech and Africa’s SuperApp, ayoba.

These appointments illustrate our diversity of nationalities and bench strength of a team that is highly experienced and well-positioned to take the business forward as we deliver on our ambitions for growth and delivering value. The newly appointed Executive Committee leading MTN on this journey officially started in their roles on 1 February 2022.

We would also like to take this opportunity to thank Felleng and Godfrey who have made significant contributions to the Group Exco, and the progress we have seen in MTN over the last 5 years. We wish them well in their respective futures.

The full Executive Committee and their profiles can be seen at https://www.mtn.com/who-we-are/leadership/executive-committee/

The leadership of the MTN Group kickstarted the year with our two-day annual virtual Global Leadership Gathering. The gathering provides an opportunity for us to reflect on the progress we have made to deliver on our ambitions, to recalibrate where necessary, and renew our commitment to lead digital solutions for Africa’s progress.

A future-fit business thrives when it can efficiently run world-class operations, adapt, and transform with the changing times, and constantly reinvent itself to remain relevant and sustainable. MTN has a tremendous responsibility to drive digital and financial inclusion in the communities we operate in. We have challenged ourselves to be bold and seize the opportunity to transform Africa’s future.

MTN Group President and CEO, Ralph Mupita, said: “MTN has a vision of providing leading digital solutions to support Africa’s progress, and we took very meaningful steps in realising this vision. The work we are doing is important for the progress of the communities we live and operate in. If Africa is to economically ‘leap-frog’, while delivering the benefits of a modern connected life to its people, MTN would have played a significant role in that progress.”

GLC-Banner

2021 achievements

It is important to highlight a few things as we reflect on the accolades received and the many accomplishments achieved in the previous year.

MTN started 2021 by stepping forward as the first private sector company to work with the African Union and contribute to securing much-needed vaccines for the African continent.

We have been recognised as one of the best companies to work for globally, following inclusion in the 2021 Forbes list of World’s Best Employers, while Fortune honoured the Group in its list of companies Changing the World. 

The work we are doing around reducing our carbon emissions, driving financial inclusion, reducing the cost to communicate, improving diversity in the workplace and digital human rights has been acknowledged by international ratings agencies such as the FTSE and Sustainalytics.

We have retained our Net Promoter Score leadership positions in 15 markets, which is a clear indicator of success and how we serve our customers. To add to this, our share price has soared, up 184% when measured from the start to end of the year.

Progress on Ambition 2025

Our Ambition 2025 Strategy is focused on driving growth through building the largest and most valuable platform business with a clear focus on Africa. To this extent, we are reinventing ourselves for a sustainable future to the benefit of our customers.

According to Mupita: “The contribution of MTNers in the progress the company made, was achieved through a most challenging time, and I know you all dug deep and tapped into individual and collective reservoirs of strength, grit, and determination.”

“Our vital behaviours, values and culture provided us with a firm foundation of service, excellence and high-performance. We are well on the way to deliver on our strategic intents, as defined by our Ambition 2025 Strategy and the commitments we have made to our stakeholders.” 

The successful execution of our Ambition 2025 Strategy will be defined by the operating structure and leadership team driving that strategy.

Operating structure and leadership changes

To ensure the Group is structured in a manner that drives delivery, we announced a new leadership structure and team in December 2021. In line with Ambition 2025’s strategic priorities, the Group has welcomed the following individuals to the ExCo team:

Several changes were introduced to MTN’s operating structure and existing ExCo members have taken on new roles with expanded responsibilities. A Markets cluster was created, combining West and Central Africa (WECA), South and East Africa (SEA) and Middle East and North Africa (MENA) under one leadership. Ebenezer Asante is assuming the new role of Senior Vice President (SVP) of Markets and part of his focus will be to ensure seamless execution of the structural separation of the fintech and infraco assets within the Markets portfolio.

A decision was made to separate digital from the fintech priorities to enhance the capacity to accelerate the growth of MTN’s fintech and other platforms. In order to remain the leader in delivering financial inclusion in Africa, we need focus, agility, and pace in fintech. With the simplified structure under the leadership of Serigne Dioum as Group Chief Fintech Officer, we are set to drive the business forward at a faster pace.

MTN Group COO Jens Schulte-Bockum will drive an acceleration of digital, infraco, enterprise services, network as a service and Chenosis platforms.  Jens and Serigne will work together closely to ensure strategic coherence and execution of both fintech and Africa’s SuperApp, ayoba.

These appointments illustrate our diversity of nationalities and bench strength of a team that is highly experienced and well-positioned to take the business forward as we deliver on our ambitions for growth and delivering value. The newly appointed Executive Committee leading MTN on this journey officially started in their roles on 1 February 2022.

We would also like to take this opportunity to thank Felleng and Godfrey who have made significant contributions to the Group Exco, and the progress we have seen in MTN over the last 5 years. We wish them well in their respective futures.

The full Executive Committee and their profiles can be seen at https://mtn-com-develop.go-vip.net/who-we-are/leadership/executive-committee/

Storytelling is as old as mankind.

From drawings on the walls of caves, to words on the pages of a book, to scenes played out on stages and screens across the world. Every community in the world has stories to share with the intention of teaching, informing or entertaining.  

The digital world has made a big impact on the way we tell stories today. We tell stories in short form, in long-form, in audio form, visual form, written form, or all forms mixed into one. We tell stories for screens as big as billboards, or as small as smartphones. Our stories have the potential to reach beyond the eyes and ears of those around us, crossing borders and oceans to find a global audience. Stories can be created and published by anyone with an idea and an internet connection, giving us more variety and more content than traditional media ever could. In Africa, stories are in abundance, and the audience is rapt.

“One glance at the content catalogues, and it becomes clear that Africa is teeming with creatives who have a story to tell.”

Considering that in 2018, the GSMA reported 774 million mobile SIM connections in sub-Saharan Africa, it comes as no surprise that more people on the continent are watching video content on their mobile devices than on their televisions. While a lot of that content is found on the world’s largest social media platforms – Facebook and YouTube – local video platforms are becoming popular too. MTN Shortz is one example of a short-form video platform where African content creators are publishing original content.

The streaming of local music is also booming on the continent. Whether fans are signing up on Spotify or looking for up-and-coming artists on local platforms like Boomplay, Africa is dancing to the beat of relevant music. Streaming is so popular that millions of African subscribers are engaging with rich media services on MTN’s platforms alone.

Other forms of content, including the news, audiobooks, even games and daily jokes are becoming more accessible to mobile subscribers in Africa. In every country where MTN offers rich media services, the content featured on the MTN Play channels is high in volume and unique to each region.  One glance at the content catalogues, and it becomes clear that Africa is teeming with creatives who have a story to tell. The millions of Africans who subscribe to content services to ensure these stories reach their mobile phones make it clear that we want to hear and read and see more.

As more platforms with African roots appear in the digital world, the collective voice of the continent’s creative population becomes louder. Our audience is larger and closer than ever before, and mobile connectivity is encouraging the sharing of more African stories.

Storytelling is as old as mankind.

From drawings on the walls of caves, to words on the pages of a book, to scenes played out on stages and screens across the world. Every community in the world has stories to share with the intention of teaching, informing or entertaining.  

The digital world has made a big impact on the way we tell stories today. We tell stories in short form, in long-form, in audio form, visual form, written form, or all forms mixed into one. We tell stories for screens as big as billboards, or as small as smartphones. Our stories have the potential to reach beyond the eyes and ears of those around us, crossing borders and oceans to find a global audience. Stories can be created and published by anyone with an idea and an internet connection, giving us more variety and more content than traditional media ever could. In Africa, stories are in abundance, and the audience is rapt.

“One glance at the content catalogues, and it becomes clear that Africa is teeming with creatives who have a story to tell.”

Considering that in 2018, the GSMA reported 774 million mobile SIM connections in sub-Saharan Africa, it comes as no surprise that more people on the continent are watching video content on their mobile devices than on their televisions. While a lot of that content is found on the world’s largest social media platforms – Facebook and YouTube – local video platforms are becoming popular too. MTN Shortz is one example of a short-form video platform where African content creators are publishing original content.

The streaming of local music is also booming on the continent. Whether fans are signing up on Spotify or looking for up-and-coming artists on local platforms like Boomplay, Africa is dancing to the beat of relevant music. Streaming is so popular that millions of African subscribers are engaging with rich media services on MTN’s platforms alone.

Other forms of content, including the news, audiobooks, even games and daily jokes are becoming more accessible to mobile subscribers in Africa. In every country where MTN offers rich media services, the content featured on the MTN Play channels is high in volume and unique to each region.  One glance at the content catalogues, and it becomes clear that Africa is teeming with creatives who have a story to tell. The millions of Africans who subscribe to content services to ensure these stories reach their mobile phones make it clear that we want to hear and read and see more.

As more platforms with African roots appear in the digital world, the collective voice of the continent’s creative population becomes louder. Our audience is larger and closer than ever before, and mobile connectivity is encouraging the sharing of more African stories.

Having access to financial services is about more than having a place to store hard-earned money.

It is about planning for the unexpected, the inevitable and the future. Since Mobile Money arrived on the continent, people in Africa now have access to additional financial services including insurance. As is the case with most digital services, insurance in Africa has taken a mobile route.

 Insurance companies are very aware that technology should be part of the foundation of their business models. Mobile insurance has been established as the most efficient way to reach the African market. PriceWaterhouseCoopers compiled a report entitled Ready and Willing: African Insurance Industry Poised for Growth which highlights technology as a key trend that impacts insurance. The report notes that mobile phones and Mobile Money offer a significant opportunity for the insurance market in African countries.

Traditional insurance companies are therefore partnering with technology companies and innovators to ensure the right policies and products reach Mobile Money users. MTN Mobile Money users in Ghana and Uganda, for example, are able to take out insurance policies with a company called aYo; the mobile microinsurance service provider is a joint venture between MMI Holdings and MTN. The financial products are underwritten by Metropolitan Life Insurance.

Since aYo launched, more than 5.3 million policies have been issued to MTN Mobile Money users.

Now that insurance services are more easily available, people in Africa are ready and willing to take out a policy. The PwC report describes insurance penetration in Africa as among the lowest in the world, but now that insurance is mobile, this reality is set to change.

 aYo offers MTN Mobile Money users and subscribers hospital cover and life insurance. Users dial a USSD code in order to begin the registration process, and premiums are 

deducted through airtime or mobile money. Cover can be increased at any time and bonus cover can be earned by getting friends and family members to sign up. Policyholders are also prompted to add the details of caretakers – the person who will handle financial affairs and other details in the event of death or hospitalization. Beneficiaries can be added via USSD as well, so the insurers can pay funds out correctly.

 An article in The Africa Report describes Ghana as among the fastest-growing Mobile Money markets in sub-Saharan Africa, and the country for other territories like Nigeria to look to when it comes to insurance penetration. Regulators and Ghanaian government have encouraged an increase in mobile insurance products for citizens over the years, and the country’s central bank reworked the regulatory framework for mobile money to allow operators to run services through existing subsidiaries. Ghana is providing an example for the rest of Africa which showcases how well financial services and mobile technology can work together.

As is the case with most traditional industries, insurance is not immune to disruption. By partnering with innovators and applying a mobile-first approach, insurance companies can successfully penetrate the African market. The population of Africa is, therefore, more likely to take advantage of financial services and plan for a bright future. 

Having access to financial services is about more than having a place to store hard-earned money.

It is about planning for the unexpected, the inevitable and the future. Since Mobile Money arrived on the continent, people in Africa now have access to additional financial services including insurance. As is the case with most digital services, insurance in Africa has taken a mobile route.

 Insurance companies are very aware that technology should be part of the foundation of their business models. Mobile insurance has been established as the most efficient way to reach the African market. PriceWaterhouseCoopers compiled a report entitled Ready and Willing: African Insurance Industry Poised for Growth which highlights technology as a key trend that impacts insurance. The report notes that mobile phones and Mobile Money offer a significant opportunity for the insurance market in African countries.

Traditional insurance companies are therefore partnering with technology companies and innovators to ensure the right policies and products reach Mobile Money users. MTN Mobile Money users in Ghana and Uganda, for example, are able to take out insurance policies with a company called aYo; the mobile microinsurance service provider is a joint venture between MMI Holdings and MTN. The financial products are underwritten by Metropolitan Life Insurance.

Since aYo launched, more than 5.3 million policies have been issued to MTN Mobile Money users.

Now that insurance services are more easily available, people in Africa are ready and willing to take out a policy. The PwC report describes insurance penetration in Africa as among the lowest in the world, but now that insurance is mobile, this reality is set to change.

 aYo offers MTN Mobile Money users and subscribers hospital cover and life insurance. Users dial a USSD code in order to begin the registration process, and premiums are 

deducted through airtime or mobile money. Cover can be increased at any time and bonus cover can be earned by getting friends and family members to sign up. Policyholders are also prompted to add the details of caretakers – the person who will handle financial affairs and other details in the event of death or hospitalization. Beneficiaries can be added via USSD as well, so the insurers can pay funds out correctly.

 An article in The Africa Report describes Ghana as among the fastest-growing Mobile Money markets in sub-Saharan Africa, and the country for other territories like Nigeria to look to when it comes to insurance penetration. Regulators and Ghanaian government have encouraged an increase in mobile insurance products for citizens over the years, and the country’s central bank reworked the regulatory framework for mobile money to allow operators to run services through existing subsidiaries. Ghana is providing an example for the rest of Africa which showcases how well financial services and mobile technology can work together.

As is the case with most traditional industries, insurance is not immune to disruption. By partnering with innovators and applying a mobile-first approach, insurance companies can successfully penetrate the African market. The population of Africa is, therefore, more likely to take advantage of financial services and plan for a bright future.