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Mobile banking finally

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Mobile banking finally

According to World Bank Findex Report 2018 only 35 percent of Ethiopians have an account at a financial institution. This figure is even smaller for young adults ages 15-24 (28 percent) and the poorest 40 percent of Ethiopians. The top reasons why people don’t have a bank account are because the financial institution is too far away (20 percent), and lack of sufficient funds to open an account, to accomplish this mobile money providers have a defining role to work on financial inclusion.
Mark Duffy is CEO of MOSS powering, which is the technology provider of M-birr.
Mark has over 30 years of experience in international financial services. He previously led the rescue and turn around creating Ireland’s first new bank in a generation. He was also Chairman of the group’s global Fintech group focused on applying new technologies to gain a competitive advantage.
Capital met with Mark, to talk about on the Fintech as part of financial inclusion and his company MOSS.

Capital: Tell us about MOSS?
Mark Duffy: MOSS is not a financial institution we are a company that provides financial institutions with the technology, skills and sometimes training to do so, we are enabling MFI’s to do this their own networks jointly or individually, with six MFI’s We distribute the social PSMP.

Capital: How do you evaluate your journey so far as you enter Ethiopia to provide the technology for mobile money?
Mark Duffy: It is most interesting and a very positive connotation because of political changes and growth in the economy, Ethiopia is on the march but MOSS is not on the march. I see Ethiopia is the second biggest country in Africa, the economy is booming the population has a desire to move on and capitalize on the positive macro-economic changes for, a business person experienced in the banking industry for several years and the MOSS professional CEO, personally, aspiring to make the industry to push in to the next stage. For the over the next three of five years we hope we build on the success and made a bigger contribution for Ethiopian society.

Capital: What has MOSS contributed to Fintech in Ethiopia so far?
Mark Duffy: I think the unique contribution about MOSS is we are ready to go to the next stage making investment in people and new technology now we got that stage and we need put that investment to wrap up to grow the business to un leash that potential MOSS contribution for Ethiopia is, MOSS is the first Mobile money provider, the second thing is it has a unique focus that has been working mainly in rural Ethiopia, when you are looking at expanding the banking community and expanding in general, we are looking our competitors which is very important for the industry to succeed, others are hugely concentrated in urban areas which is easy to do business but, we chose to work on 80-85 percent of the population of Ethiopia live and work, in a countryside because I know what rural society works as I was from the rural part of my little Ireland and farmers all over the world are more or less the same. Moss is the biggest in rural Ethiopia in providing Mobile money service through six MFI’S which is a huge contribution. It is not much easier to do business in rural areas. It is a lot easier in cities, so our plan is to be a key player in those areas. We have more than 1.5 million registered customers we have over 12 thousand branches, agents through MFI’S network to work with so the main difference between MOSS and other competitors, we are rural focused What we look is to expand our network and grow our huge presence through MFI’S that helps to balance the rural and urban Ethiopians.

Capital: Moss is working with six MFI’s is there any plan to scale up to the other MFI’S because there are nearly 40 MFI’s now?
Mark Duffy: Yes, what we need is to decide to do this, we arrived with a suitcase-an idea with private technology so we moved from that beach land in to the grass and established a business to do, and now we move on to the grass, for the last few years we have developed a good relationship with NBE and other government organs, we have the technology. First, we invested in the people to bring us to the next chapter of development, to build business in rural Ethiopia, deliver more balance by getting more, customers to do in JV in MFI’S and another financial institutions to be at the back to enable them to do business efficiently and help to expand their customer base. In the next three to five years, we hope it multiplies our customers as we back MFI’S to do so.

Capital: Have you received any governmental support in your effort to create fintech?
Mark Duffy: Yes, we have huge support from the Prime Minister’s Office, in financial inclusion as there is the possibility to combat corruption, particularly in deliberate solutions in the areas it is extremely difficult for regulators. I have worked in the public service and I have worked with them together not in dispute or as an enemy and delivered regulators all over the world to tackle the enormous challenge.

Capital: What are the challenges and opportunities for Fintech in Ethiopia?
Mark Deffy: Increase the mobile telephone penetration.
Mobile technology is very important, additional operators in telecom opens to door to enable more people to have a telephone hopefully more people will use mobile money. I will persuade them to Use MOSS tech services like M-Birr ,I think the biggest challenges are 70 percent of the population is un banked ,that is an opportunity and challenge and the MFI’S learn new skills, just like the National Bank of Ethiopia there are challenges that they work with stake holders to get over all those challenges in my view 70 percent of an unbanked society is the most amazing opportunity. That is why you have five credible competitors, that the bank use mobile money ,it is the quickest way to bank and reduce the unbanked societies in relation to financial inclusion and useing mobile money is not only for financial inclusion and I think it is an accepted fact in economics the greater the financial inclusion, the grater the wealth. There are big challenges like structural challenges lot of things going on. Ethiopia’s adoption of technology really surprised me and that is a tremendous opportunity.

Capital: What do think the government can do to improve infrastructure or legal frameworks to facilitate a cashless society?
Mark Duffy: My experience working for 7 international markets shows that in banking industry needs clear polices in order to motivate local business regulators (NBE) in this case I found complete absence in Ethiopia changing polices. The pro fin-tech, the pro mobile money, and they have been a huge help for the national bank which is learning new technology to allow us to advance our business. This is one of the key reasons because of easy access to pro fin-tech mobile money. We have to help each other because it is a new learning experience, as these are new concepts in which the government has to make sure about digital inclusion. The regulator is there, for us these are fantastically opened and make progress. If I was the Prime Minister of Ethiopia, or the governor of NBE, I could get four of five players, and these players would bring more advanced technology and transfer the technology to Ethiopian companies those companies who are running the majority of the profit in the transaction and Ethiopians are up to scale in managing those companies and having such enormous effect in banking rural Ethiopia, existing players don’t and it doesn’t cost Ethiopia hugely. So it’s a positive reaction. Breathe the fresh air I have to say.

Capital; Ethiopia will have additional telecom operators in the near future, how will it affect FinTech?
Mark Duffy: It is great news to have more than two potential telecom operators. It means there are competitors to deliver affordable and quality service. Each of them will take the ethio telecom already announced to begin Mobile money components, why do they do this? Because they have Mobil coverage, technology, business and know how, that it is very natural very natural to increase the government values that benefits every Ethiopian. This means Moss is the first and leading provider of mobile money and it means opportunities for to picking up one of the three operators in the box which benefits more Ethiopians to have more telephones, which means Mobil money operators will work on it, as it is the quickest way to an unbanked the society that is why I said it is good news not only for the companies but also for the country as a whole. MOSS hopes to play a small role.

AFRICAN WOMEN LEADING BY EXAMPLE

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Films have been known to begin trends and even create a true sense of “woke” as seen with Wakanda, which many claim are responsible for the recent rush into Africa by many in the Diaspora desiring to reconnect with the Motherland. YEAR OF RETURN Campaign in Ghana can attest to this phenomenon. A new film, Harriet, opens to the public on November 1st. It’s about a real life hero of the 19th century, Harriet Tubman, a little known name to most Ethiopians and continent for that matter. The movie introduces the fearless female credited for taking approximately 13 missions to free scores of enslaved Africans to freedom from the southern states in the USA through the Underground Railroad, a system of secret paths and “safe houses through Buffalo New York across the water into Canada. Born in 1822 into slavery, this wonder woman would also become a Civil War scout and spy for the Union Army, seeking to end the brutal system of slavery. Tubman would also go on to become a leading activist in the women’s suffrage movement, as even white women had no rights in America during this period. Harriet is played by Nigerian-British actress Cynthia Eriva a Tony Award winner for the 2015 Broadway rendition of The Color Purple.
Such bio-pics bring us closer to the lives of Black s/heroes, many times buried in books on library shelves and dusted off in February, Black History Month, for mere moments. Harriet, directed by female African- American Kasi Lemmons, will help us understand the passion that drives women when faced with situations that are near impossible to navigate, yet realize that freedom cannot be compromised. I hope this story of sheroism and leadership will encourage African women, in particular to find their strength.
Fast forward to another no nonsense woman trending, in the 21st century, with almost 50,000 signatures on a petition for her reinstatement as the African Union Rep to the USA, Ambassador Arikana Chihombori-Quao. CNN has joined the numerous African news agencies and bloggers swirling stories about the unceremonious and ambiguous termination letter by her boss, AU Chairperson, Chadian Moussa Faki Mahamat on October 7th giving 3 weeks to clear out of office. A successful medical doctor, Chihombori- Quao has been in the post since 2017 but a delegation dispatched by the Chairperson’s office including his Deputy Chief of Staff, Budget and Finance, Legal Council and Faki’s Spokesperson were sent to DC on the 17th to “…ensure a smooth transition…” according to the leaked Interoffice Memo. Hmmm doesn’t sounds like “normal diplomatic practice…” according to the press release issued by the Faki’s Spokesperson, Ebba Kalondo. The first sentence in the published communiqué reads, “The African Union Commission is aware of reports circulating on social media making claims surrounding…the recall…” Nice to know social media influenced the AU’s press release, but curious that there was no response to the plethora of African lawyers, educators, business people, students, artists and activist bombarding the AU with calls and emails demanding her reinstatement and/or at least rationale for the prompt termination. Gil Scott Herron sang, “The revolution will not be televised…” I say the revolution will be tweeted.
So how does this tie into art and culture? The outspoken yet polished and poised Good Dr. Arikana, a successful medical doctor from Zimbabwe, openly and passionately called for the return of centuries old artifacts stolen by several colonial powers including France. This incident has led to Ghana’s past President Jerry Rawlings weighing in, stating her removal came from “French controlled minds.” Many times the voices of our leaders in these esteemed positions are dimmed by the prestige and benefits of the post. Dr. Arikana put it all on the line and erred on the side of the best interest of Africans, those at home and those abroad, in the hopes of creating awareness as to what is really going on and how we can be part of successful campaigns for the return of our cultural heritage, avoiding the pitfalls of the past in the future. We will see what happens next, but knowing the good doctor, as I do, and I consider her a Sister and colleague, after years serving the interests of the Diaspora; like Harriet’s story may help us find our strength, may this fiasco help us find our voices, ensuring our heritage and wealth is never again pillaged.
Another powerful Sistar, my mentor and former boss, Dr. Nana Rita Marley O.D., wife of reggae icon Bob Marley, taught me lots about strength under fire. From our community activism in the 80’s in the Rastafari Movement to professional accomplishments when I served her as Managing Director of the Bob Marley Foundation, Mrs. Marley exemplifies strength and an incredible voice sending us message music over the decades of African resilience, unity and pride. With Bob’s 75th Birthday coming in a few short months, I had Nana on my mind. Recovering wonderfully from a stroke several years ago, the Reggae Matriarch who calls Ethiopia her spiritual home, sent a big ‘HARAMBE…I LOVE YOU” over the phone. Yearning to return to Africa as soon as possible, particularly her residence in Ghana, her decision to bring African Unite, Bob’s 60th Birthday to Ethiopia almost 15 years ago, remains the largest international music event in Ethiopia. All said and done, we look forward to a bright future where strong African women lead by example and whose voices are supported by men who know that the revolution may not be televised but will certainly show up on your newsfeed. Get ready!

Dr. Desta Meghoo is a Jamaican born
Creative Consultant, Curator and cultural promoter based in Ethiopia since 2005. She also serves as Liaison to the AU for the Ghana based, Diaspora African Forum.

Art and handicraft festival going to be held in Lalibela

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Art and handicraft festival going to be held in Lalibela

Lalibela will be hosting an Art and Handicraft Festival aimed at diversifying its tourism offerings.
The festival will be held on October 26 and 27 and will feature more than 20 artisans exhibiting diversified portfolios of products ranging from paintings to leather products, and from pottery to jewelry and from textile to beeswax handcrafts.
Lalibela Arts and Handicraft Festival, which is going to be hosted at Geterge Road, is an initiative of a project, “Greening Ethiopia Manufacturing”, financed by European Union and implemented by a collaborative collation Ethiopian Chamber of Commerce & Sectorial Association (ECCSA) of Precise Consult International (PCI), and INOA, a Slovenian company.
Beyond its well-known tourist sites, Lalibela hosts a very old tradition and culture of producing artifacts and handicraft products. As such, the Festival will promote authentic and sustainable handicrafts made by local artisans and to enrich the offerings of the town for international and local tourists.
Lalibela Art and Handicraft Festival is supported by the Lalibela Tourism Office. Opening on October 26, 2019, the Festival will see delegation from the Lalibela city Mayor and the Lalibela Handicraft Cluster members

Ethiopia should learn the boom and bust in East Asia

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Ethiopia should learn the boom and bust in East Asia

Shimelis Araya
In 1989, J. Williamson, a British economist designed ten economic policies used as a standard packages for developing countries. Whatever the merits of these policies, the “Washington consensus”, as he called it due to the huge backing by international and government institutions in the United States, proved not good enough and attracted countless controversies. Almost 25 years, these prescriptions are hammered in J. Studwell’s influential book called How Asia Works. The book loudly explained that half of the Asian region is characterized by most extraordinary developmental success story; the other half ends up with a paper tiger. Why the northeast Asians such as Japan, South Korea, Taiwan, and now China are richer while the southeast counterparts of Thailand, Philippines, Malaysia and Indonesia are relatively poorer? Is the later failed because of their geography or climate or due to wrong-headed economic policies?
Studwell concluded that poor economies can prosper the recipe with just three ingredients. The northeast Asians have been effectively used these recipes and produced the quickest progressions from poverty to wealth that the world has witnessed. The first intervention is to maximise agricultural output through a highly labour-intensive technique. The use of surplus and cheap labour in a poor economy pushes up total yields to the highest possible levels, even though the labour productivity is tiny. The overall benefits of agricultural surplus primes the demand for industrial goods. The second intervention – he called it the next ‘stage’ – is to direct entrepreneurs towards manufacturing. To quicken transformation, there must be a shift of focus towards the expansion of the industrial sector. As the saying goes no more a vegetarian tiger and they gradually shifted the profits from a developed agriculture towards manufacturing. This is due to the fact that manufacturing makes the most effective use of the limited productive skills of the workforce who migrate out of agriculture. In a learning by doing approach, unskilled labourers create value by working in factories. The governments in the northeast Asians initiated and directed technological upgrading through subsidies based on export performance. This is what he called it ‘export discipline’ that took the pace of industrialisation to a level never observed before globally. Finally, it is also mandatory for the state to intervene in the finance sector to direct the precious capital serving smallholder intensification agriculture and manufacturing initiatives in order to accelerate economic transformation. Accordingly, the state’s role is to keep money targeted at a development strategy based on national interests that produces the quickest possible technological learning instead of spending on short-term returns and individual consumption.
To sum up, the northeast Asians restructured smallholder agriculture, focused their modernisation efforts on manufacturing, and use the financial sector to serve these goals. By doing so, they changed the structures of their economies in a manner that is impossible to return to an earlier stage of development. By contrast, the Southeast Asians have begun with the same ambitions for development but failed to adopt similar policy prescriptions in a consistent manner. Despite their long periods of impressive growth – governments did not fundamentally re-organise agriculture, did not create globally competitive manufacturing. In addition, they accepted bad advice from the IMF/WB experts to open up their economy to foreign firms at an early stage, as Studwell argued. The policy inconsistency resulted in unsustainable growth of yield even though they are able to achieve fast growth for a period. Accordingly, the policy choice created – and will probably further widen – a developmental gap across the dynamic Asian region.
Studwell’s explanations are a warning to nations like Ethiopia to learn lessons from history. Only those nations with context-based policies are capable to make it, he argues. The current government has put in place its latest economic plan as it has been called ‘Home-grown Economic Reform’ a month ago. The reform document says ‘the country’s macroeconomic, sectoral and structural problems’ are key drivers for the policy change and context-based prescriptions are needed to cure the economy that suffers with chronic pain. However, some of the economists in the country have forwarded their views that the reform was purposefully designed to resolve the chronic foreign exchange problems by opening up the economy to foreign firms instead of providing a genuine solution to the real economic problems.
Unquestionably, agriculture is the key sector in Ethiopia. However, it has been characterized with a very low productivity mainly due to limited intensification efforts. The goal should be to use the cheap labor to maximize yield per hectare in a smaller intensively farmed plots. Maximizing yields can serve several goals: farmers earn money and spent on local manufacture products; higher food production help saves the foreign exchange spent on food imports; increased supply of food reduces high food inflation that has been for a longer time, and farmers’ savings can be recycled for industrial expansion. In short, the rural abundance creates room for an export-led manufacturing growth. For this, the state must nurture SMEs instead of quickly opening up the economy and forced them to compete with giants. In this regard, for instance, the situation of the likes of domestic cultural cloth producers (ጥበብ አምራቾች) requires urgent action. Domestic producers are forced out of market due to the fake products that are imported from China and also sold at a relatively far lower price. In addition to the impact on culture, it has numerous detrimental effects on local economics. To protect infant domestic producers, the government should highly tax such products and control the considerable sum of foreign exchange spent. As a condition for such support, domestic producers must be obliged to generate foreign currency through exports. Such foreign sales also provide an external test for a further progress. As a last recipe, the government should undertake strict financial control and directed these precious resources towards development activities that have huge national impact instead of spending on imports of luxurious and unnecessary individual consumption. The government should control the forex spent on ‘human-hair’, as an example.
The practical three-step doctrine of Studwell’s piece is less controversial than the Washington consensus packages. Due to its powerful insights, let me invite you to read this vital book.

The writer can be reached, araya.gedam@gmail.com

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