The importance of Mobile phones for global business transactions

INTERNATIONAL and Regional experts in Information and Communication Technologies (ICTs) including computer companies across Africa and abroad gathered in Dar es Salaam last week to deliberate the possibility on how to promote mobile money transfer technology. A two day summit which is the first ever to be held in Tanzania aimed to explore the possibility of using mobile money transfer technologies in settlement of Insurance, Banking, Health, Education and loans for Small and Medium Enterprises (SMEs). Various presentations were made about basic issues related with the mobile money inclusion. This is a concept which involves the usage of technological ICT products such as mobile phones used to provide financial services by way of transferring money. Mobile money transfer involves the use of mobile phone to transfer money between banks or accounts, deposit or withdraw funds or pay bills. The term is also used for the broader realm of electronic commerce. It can refer to the use of a mobile device to purchase items whether physical or electronic. “The integration of banking services through mobile phone platform is an appropriate way to get more unbanked people to access financial services in most rural areas and see how much more easier to expand banking services”, says Sam Omukoko of Metropol East Africa Ltd. Basing on East Africa context, Omukoko who presented his views through his paper entitled “The potential of mobile money in financial inclusion”, noted that there is a need to expand East African common market if mobile money transfer knowledge is made accessible to the most disadvantaged and low income people living in rural areas within the region.

The Managing Director Mr. Sam Omukoko of Metropol East Africa Ltd in an interview with a local Television media during the workshop which was held at Dar es Salaam based Royal Palm Hotel

According to him, an effective communication through mobile phones is the essential factor to cater for the need of mobile money inclusion. He says, the platform is enough for many things but the most important is that it lessens congestion and hence there is no need for bank queues at customers’ service counters. Apart from this it makes business transactions to move much faster and more easily accessible. The Bank of Tanzania which was represented at the summit by its Director of Payment Systems Mrs. Lucy Kinunda said that, mobile money platform is easier to communicate with small scale business people in the country and already according to the statistics made available about 17.7 million people are using mobile phones to access money transfer to their relatives, friends through M-Pesa services technology. Most of mobile money services require usage of agents who acts as cash in and cash outlets. These include small merchants who are maintaining retail shops at various places. Mobile financial services and financial inclusion are further complemented by the proliferation of payment cards (debit, credit, prepaid systems) particularly electronic money which enables banking and payment services to be conducted without a bank account or visits to traditional bank branches. Mobile money transfer is growing higher than mobile banking, this is because of the fact that money users are always demanding for the regular consumable products, but in remote areas it’s very difficult to get someone with money to deposit due to poverty therefore it’s very rare to get people with money to deposit. In Tanzania, studies by African Development Bank (AFDB) has indicated that the formal banking services have not penetrated to the wider segment in the society since financial mobile services started in 2008, particularly in rural areas. Statistics shows that only 15 percent have accessed financial services in most rural areas. According to the organizers of the summit, Nuebrand Ltd based in Dar es Salaam, the decision to host this event in Tanzania reflects the level of recognition for the active development of the cell phone companies operating in the country which engage in mobile money platform, says Omar Aziz the company’s Managing Director According to him the summit was attended by delegates from Africa and abroad in countries like Kenya, Uganda, Liberia, Egypt, .France, United States of America, and Tanzania who hosted the summit.