MFS Africa, the pan-African digital payments network, has announced its strategic partnership with Mvola, Madagascar's leading mobile money provider. This collaboration is set to revolutionize inbound international money transfers to the island nation, creating a seamless flow of funds from the rest of Africa to Madagascar.
This landmark deal establishes MFS Africa as the first aggregator to integrate with Telma, Madagascar's top Mobile Network Operator (MNO), which commands an impressive 70% market share. As a result, this partnership will enable the easy transmission of remittances from Europe, the United States, and the United Kingdom to Madagascar.
The Group Head of Growth at MFS Africa, Nika Naghavi, emphasized the historical challenges of providing financial services to Madagascar due to its predominantly rural landscape and infrastructural limitations. He stated, "This means that consumers in the country have been historically underserved by traditional financial institutions. But, by bringing our ever-expanding API suite to a market leader such as MVola, we will be able to unlock new corridors for international payments to flow seamlessly between Malagasy mobile money accounts and the rest of the world."
Madagascar currently boasts over 10 million mobile money accounts, significantly surpassing the number of traditional bank accounts. This widespread adoption allows more than a third of the population to utilize mobile money for various financial transactions, including bill payments, peer-to-peer transfers, savings, and borrowing.
Furthermore, the opportunity for employment abroad remains an attractive prospect for many Malagasy citizens, who seek to support themselves and their families back home. Madagascar is recognized as a strong remittance-receiving market, with France serving as its primary source of remittances. According to the World Bank, the country received over $700 million in remittance inflows in 2022.
Sidali Stiti, Chief Commercial Officer at MVola, highlighted the importance of enabling instant remittance reception into mobile money accounts. He stated, "This is why it is so important that people in the country can instantly receive remittances from their families abroad into their mobile money accounts. By joining forces with MFS Africa, we will be better able to deliver on our commitment to provide access to affordable and quality financial services to every Malagasy."
Already responsible for connecting the Malagasy diaspora with their families and loved ones back home by processing a substantial number of remittances daily, this integration with Mvola promises to reach a broader segment of the population. Consequently, MFS Africa aims to strengthen its current position in the country and potentially secure an impressive 100% market share in the mobile money sector.
MVola, which was launched in 2010, has played a pivotal role in promoting financial inclusion by providing access to digital services, including bill and merchant payments, to all Malagasy citizens. In 2018, MVola became the first Electronic Money Institution in Madagascar and later obtained a banking license in 2021, becoming the country's inaugural digital bank.
This partnership between MFS Africa and Mvola represents a significant step toward bolstering Madagascar's financial infrastructure, expanding access to financial services, and facilitating the easy transfer of funds from around the world into the pockets of Malagasy citizens, ultimately driving economic development in the island nation.
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