RCS - Vodafone Group Plc - NEW RESEARCH SHOWS MOBILE FINANCE CAN INCREASE GDP

VodafoneAnnouncement

27/10/2022 07:00

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RNS Number : 2352E  Vodafone Group Plc  27 October 2022

27 October 2022

 

NEW RESEARCH SHOWS MOBILE FINANCE CAN INCREASE NATIONAL GDP

 

MWC, Africa, Kigali - 27 October 2022 - New research from Vodafone Group,
Vodacom Group, Safaricom, and the United Nations Development Programme (UNDP)
indicates that the successful deployment and adoption of mobile financial
services is associated with a positive impact on GDP growth in developing
markets as it helps businesses to reduce cost, access credit to invest, and to
connect with consumers that were previously excluded from financial services.

 

The econometric modelling research(1) - which examined 49 countries in Africa,
Asia, and Latin America - found that countries with successful mobile money
services had an annual GDP per capita growth rate up to 1 percentage point
higher than countries where mobile money platforms had not been successful or
not introduced.

 

Based on previous World Bank research on the relationship between economic
growth and reductions in the number of people living in poverty(2), this GDP
per capita growth implies that countries with successful mobile money adoption
could reduce poverty by around 2.6%.

 

The analysis was conducted as part of the companies' Africa.Connected
(https://www.vodafone.com/about-vodafone/how-we-operate/public-policy/africa-connected)
campaign, an initiative to drive sustainable development through collaboration
and help close the divides that prevent progress in Africa's key economic
sectors. The findings are part of a new research paper, Digital Finance
Platforms to Empower All, the fourth research paper developed and released
under the Africa.Connected umbrella.

 

Sitoyo Lopokoiyit, CEO of M-Pesa Africa and Chief Financial Services
Officer at Safaricom, said:

 

"Mobile financial services platforms like M-Pesa are vital drivers of
financial inclusion in society which can improve individual life chances and
enable enterprises to launch and expand, bringing wealth and jobs into
developing economies. There remains though barriers both to accessing
platforms - including digital literacy and smartphone accessibility - and to
developing them - with an un-level regulatory playing field for
non-traditional financial services providers in many countries."

 

As part of the Africa.Connected research, consumer surveys were conducted
focusing on users of M-Pesa in Kenya  and Tanzania, and results were
extrapolated to Ghana and Mozambique. A business survey was also conducted in
Kenya. The resulting research underpinned the continuing importance of the
world's first mobile money service 15 years after it launched in 2007. The
researchers estimated that:

·    17.6 million current users in the four countries did not have access
to any formal financial services before using M-Pesa;

·    98% of businesses surveyed said that M-Pesa helps them to do
business, with the main benefits of M-Pesa being its facilitation of faster
and safer payments and enabling the sale of goods and services online; and

·    95% of businesses surveyed indicated that they use M-Pesa for at
least half of their business transactions.

 

Ulrika Modeer, UN Assistant Secretary-General and Director of the Bureau of
External Relations and Advocacy at UNDP, said:

 

"Financial inclusion is both a pre-condition and a key enabler for meeting
many of the UN's Sustainable Development Goals, including reducing poverty,
boosting economic growth, promoting market access and championing investment
in key sectors like education, agriculture, and healthcare. But more
importantly, it is about putting people at the center, empowering them with
more agency over their money and increasing their resilience. Eliminating
financial exclusion in Africa, and across the globe, must be a priority if we
are to deliver on inclusive, sustainable prosperity for all on a healthy
planet."

 

Click here to read the full Africa.connected financial inclusion paper:

https://www.vodafone.com/sites/default/files/2022-10/digital-finance-platforms-to-empower-all.pdf
(https://www.vodafone.com/sites/default/files/2022-10/digital-finance-platforms-to-empower-all.pdf)

 

- ends -

 

 

 Notes to Editors

 1.The econometric model made use of data covering the period 2003 - 2019. More
 recent data was not included in the modelling due to the effects of the
 pandemic.

 2. Adams, 2003, Economic Growth, Inequality, and Poverty: Findings from a New
 Data Set. World Bank. Available online:
  https://elibrary.worldbank.org/doi/abs/10.1596/1813-9450-2972
 (https://elibrary.worldbank.org/doi/abs/10.1596/1813-9450-2972)

 For further information:

 Vodafone Group
 Media Relations                          Investor Relations
 GroupMedia@vodafone.com (about%3Ablank)  IR@vodafone.co.uk (about%3Ablank)

 

 

About Vodafone

 

Unique in its scale as the largest pan-European and African technology
communications company, Vodafone transforms the way we live and work through
its innovation, technology, connectivity, platforms, products and services.

 

Vodafone operates mobile and fixed networks in 21 countries, and partners with
mobile networks in 47 more.  As of 30 June 2022, we had over 300m mobile
customers, more than 28m fixed broadband customers and 22m TV customers.
Vodafone is a world leader in the Internet of Things (IoT), connecting around
160m devices and platforms.

 

We have revolutionised fintech in Africa through M-Pesa, which celebrates its
15(th) anniversary in 2022. It is the region's largest fintech platform,
providing access to financial services for more than 50m people in a secure,
affordable and convenient way.

 

Our purpose is to connect for a better future by using technology to improve
lives, digitalise critical sectors and enable inclusive and sustainable
digital societies.

 

We are committed to reducing our environmental impact to reach net zero
emissions across our full value chain by 2040, while helping our customers
reduce their own carbon emissions by 350m tonnes by 2030.  We are driving
action to reduce device waste and achieve our target to reuse, resell or
recycle 100% of our network waste.

 

We believe in the power of connectivity and digital services to improve
society and economies, partnering with governments to digitalise healthcare,
education and agriculture and create cleaner, safer cities.  Our products and
services support the digitalisation of businesses, particularly small and
medium enterprises (SMEs).

 

Our inclusion for all strategy seeks to ensure no-one is left behind through
access to connectivity, digital skills and creating relevant products and
services such as access to education, healthcare and finance.  We are also
committed to developing a diverse and inclusive workforce that reflects the
customers and societies we serve.

 

For more information, please visit www.vodafone.com
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