RWANDA: AIRTEL LAUNCHES MICRO-FINANCE LOAN SERVICE FOR ITS SUBSCRIBERS

Mobile operator Airtel Rwanda has launched a micro-finance loan service. The new product is operated in partnership with the microfinance company Atlantis Ltd. and is called “Igurize Amafaranga”. It allows one to take a loan of 50,000 Rwandan francs (72 dollars) repayable in two weeks. Speaking at the launch of the new service, Phillip Onzoma, the head of Airtel Money, explained that “there is an increasing need for financial institutions to partner with telecom companies to extend financial services to all Rwandans” .

Raissa Muyango, managing director of the microfinance company Atlantis Rwanda, explained that this service is “convenient as one can borrow money without presenting any collateral, especially during emergencies when in need of urgent cash to solve problems”. To qualify for the micro-loan, one has to be an Airtel customer with active voice, Internet or airtel money services.

Airtel bringing innovation to Rwandans is not unique. Other mobile operators have already been launching initiatives in that area. This is the case of Safaricom in Kenya, which offers through its M-Pesa platform, financial loans to its subscribers. Safaricom has pushed away this service for subscribers who need large sums of money. It recently signed a partnership with regional lender KCB to provide clients with mobile money loans of up to the tune of Ksh1 million (10,800 dollars).

Agence EcoFin