Movotek Mobile transactions zambia

1601 Connecticut Avenue NW, Suite 501, Washington, DC 20009 // Tel: (202) 518-6865 // Fax: (202) 986-4729 // www.gbfund.org

MOBILE TRANSACTIONS’ MISSION To connect its customers to the mass market using mobile technology and

a countrywide agent network.

Mobile Transactions Zambia

The Challenge Cash and paper are the main sources of financial transactions in Africa. In countries such as Zambia, over 80% of adult income -earning people are unbanked and a further 50% are unconnected from modern communication technology. Mobile Transactions’ vision is of a cashless Africa, where organizations from all sectors can transact with the unbanked mass market easily, quickly, and safely. MT has chosen Zambia as a launch pad because of its favorable regulatory environment, low banking penetration, and mild competition-- but hopes to prove the model and expand throughout Sub- Saharan Africa.

Mobile Transactions’ Solution Mobile Transactions (MT) conn ects its customers to the mass market using mobile technology and a countrywide agent network. Rather than focusing on the end-user as a primary customer, MT targets corporations, development sector organizations (i.e. NGOs and donors), government agencies, and microfinance institutions (MFIs). MT enables its customers to transact with banked unbanked, connected, and unconnected end- users easier, quicker, safer, and more affordably.

What differentiates MT from its competitors is that it provides end-to-end transaction solutions built bottom-up for the African market. MT combines a proprietary technology that provides solutions for our customers with an expansive network of agents that reach the mass market. MT is also both bank and network agnostic, which means that its model can scale. Mobile Transactions’ Partnership with GBF The Grassroots Business Fund gave MT early financing to prove the model and generate the revenue needed to raise the next round of financing. MT has grown rapidly, and GBF is working closely with MT as the company

prepares for its follow- on round of equity funding. GBF is providing direct business support to build MT’s financial management capabilities and to develop its governance processes through a newly formed Advisory Board. GBF is also providing legal assistance to help streamline the company’s corporate structure.

Mobile Transactions Solution Providerwww.movotek.com [email protected]

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1601 Connecticut Avenue NW, Suite 501, Washington, DC 20009 // Tel: (202) 518-6865 // Fax: (202) 986-4729 // www.gbfund.org

MOBILE TRANSACTIONS’ IMPACT For each $1 invested in MT, MT

generates $13 in social economic impact for its agents.

With GBF’s as sistance, MT is planning to expand to other countries in Sub- Saharan Africa within the next three years. Providing MT meets specific milestones and performance targets, GBF may invest additional funds to help the company scale up and replicate its model.

Mobile Transactions’ Impact MT is the fastest growing company in Zambia and one of the fastest in Africa. Since launching with its first money transfer transaction on April 1, 2009, MT has achieved:

Over $2,000,000 per month in transaction value through our system

Transaction gross profit of $40,000 per month Over 200 agents in every region of Zambia 200,000 redeemed vouchers with the World Food Programme 25,000 redeemed vouchers with the Food and Agriculture Organisation

MT impacts three main stakeholder groups:

Organizational customers across all sectors (corporate, government, social sector) benefit from dramatically reduced transaction fees, improved controls, and critical management information to improve programming.

Agents earn incremental revenue in the form of commission on transaction fees and retail margin on voucher redemptions.

Consumers benefit from reduced money transfer costs, increased security from an ability to store cash electronically, and in the future new financial products and services that will be offered on MT’s platform.

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$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000

$2,000,000

Jan -10 Feb -10 Mar -10 Apr -10 May -10 Jun -10 Jul-10 Aug -10 Sep -10

Transaction Value

Money Transfers Electronic Vouchers Banked Payments Unbanked Payments

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$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

Jan -10 Feb -10 Mar -10 Apr -10 May -10 Jun -10 Jul-10 Aug -10 Sep -10

Transaction Gross Profit

Money Transfers Electronic Vouchers Banked Payments Unbanked Payments

Mobile Transactions Solution Providerwww.movotek.com [email protected]

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