HOUSE_OVERSIGHT_032161.jpg
2.58 MB
Extraction Summary
3
People
6
Organizations
9
Locations
3
Events
1
Relationships
5
Quotes
Document Information
Type:
Article / report excerpt (house oversight production)
File Size:
2.58 MB
Summary
This document is an excerpt, likely from a profile or report, detailing the history and business philosophy of Masiyiwa and his company, Econet Wireless. It covers the company's expansion across Africa and New Zealand, its focus on mobile banking and microfinance for the poor and refugees, and Masiyiwa's vision for increasing financial inclusion via mobile technology. The document bears a House Oversight Committee footer (HOUSE_OVERSIGHT_032161), indicating it was part of a document production for a congressional investigation.
People (3)
| Name | Role | Context |
|---|---|---|
| Masiyiwa | Businessman / Founder of Econet Wireless |
Discussing mobile banking, microfinance, and telecommunications in Africa.
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| Mugabe | Government Leader (Zimbabwe) |
Mentioned in context of a UN civil suit in 2000.
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| Unnamed Judge | Judge in Zimbabwe |
Granted Econet Wireless's licence in 1998.
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Organizations (6)
| Name | Type | Context |
|---|---|---|
| Econet Wireless |
Telecommunications company established in 1998.
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| UN |
United Nations, filed civil suit against Mugabe in 2000.
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| M-Pesa |
Mobile money transfer service mentioned as a comparison.
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Mentioned as a service customers want to use.
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Mentioned as a service customers want to use.
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| House Oversight Committee |
Document source (footer tag).
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Timeline (3 events)
2005
War in Burundi ended; Econet developed mobile payments for refugees.
Burundi
Locations (9)
| Location | Context |
|---|---|
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Country where Econet operates.
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Country where Econet operates.
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Country where Econet operates.
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Country where Econet operates.
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Country where Econet operates and where Masiyiwa moved headquarters.
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Country where Econet operates and used as economic comparison.
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Location of war ending in 2005, prompting refugee aid.
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Country of origin for the licensing battle; comparison of phone usage stats.
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Location of a symposium where Masiyiwa gave a speech.
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Key Quotes (5)
"So we built the payment system initially not as a business but as a way to help humanitarians get money to people in rural areas who were trying to re-establish their lives."Source
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Quote #1
"The big frontier for us is to create platforms where those people can access credit."Source
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Quote #2
"We're trying to build up a savings culture where people are encouraged to save, even if they only have a dollar"Source
HOUSE_OVERSIGHT_032161.jpg
Quote #3
"Today, 75% of people [in Zimbabwe] have a cell phone... And I want 75% of the people in Africa to have a bank account ... on a mobile phone."Source
HOUSE_OVERSIGHT_032161.jpg
Quote #4
"Their behaviour and aspirations are no different from those who have higher incomes... They want to use Facebook. They want to use WhatsApp."Source
HOUSE_OVERSIGHT_032161.jpg
Quote #5
Full Extracted Text
Complete text extracted from the document (3,589 characters)
Econet Wireless was established in 1998, but not before a fight. Masiyiwa waged a five-year
legal battle with the government for a licence to deliver telephone services. The company
now operates in 17 countries including Botswana, Lesotho, Kenya, Nigeria, South Africa and
New Zealand. In 2000, while the UN filed a civil suit against Mugabe, Masiyiwa moved his
family and company headquarters to South Africa. Econet Wireless first developed mobile
payments to help NGOs transfer money to refugees after the war in Burundi ended in 2005.
"Donor agencies were trying to find ways to make cash disbursements to refugees," says
Masiyiwa. "So we built the payment system initially not as a business but as a way to help
humanitarians get money to people in rural areas who were trying to re-establish their lives."
legal battle with the government for a licence to deliver telephone services. The company
now operates in 17 countries including Botswana, Lesotho, Kenya, Nigeria, South Africa and
New Zealand. In 2000, while the UN filed a civil suit against Mugabe, Masiyiwa moved his
family and company headquarters to South Africa. Econet Wireless first developed mobile
payments to help NGOs transfer money to refugees after the war in Burundi ended in 2005.
"Donor agencies were trying to find ways to make cash disbursements to refugees," says
Masiyiwa. "So we built the payment system initially not as a business but as a way to help
humanitarians get money to people in rural areas who were trying to re-establish their lives."
That model was extended and now mobile money transfers are central to Econet Wireless's
business. Like M-Pesa before it, the company blurs the lines between telecomms and
banking. Masiyiwa is passionate about this latter part of his business. He believes that
extending saving and credit services to the poorest people gives them "extraordinary dignity
and a sense that they are in control of their own lives". His next challenge is to create a
product that allows people who are informally employed, such as smallholder farmers and
casual workers, to access credit. "In Africa 70% of people are informally employed," he says.
"The big frontier for us is to create platforms where those people can access credit." He says
there's no risk that they will get into unmanageable debt because the banks won't extend
excessive credit, calling the system "self-regulating".
business. Like M-Pesa before it, the company blurs the lines between telecomms and
banking. Masiyiwa is passionate about this latter part of his business. He believes that
extending saving and credit services to the poorest people gives them "extraordinary dignity
and a sense that they are in control of their own lives". His next challenge is to create a
product that allows people who are informally employed, such as smallholder farmers and
casual workers, to access credit. "In Africa 70% of people are informally employed," he says.
"The big frontier for us is to create platforms where those people can access credit." He says
there's no risk that they will get into unmanageable debt because the banks won't extend
excessive credit, calling the system "self-regulating".
But Masiyiwa says that offering people the ability to save is even more important than credit.
"We're trying to build up a savings culture where people are encouraged to save, even if
they only have a dollar – for children's school fees, for transport, for the doctor. A savings
and credit infrastructure builds resilience." In his speech to microfinance experts at the
symposium in Turin, Masiyiwa recounted a story about the judge in Zimbabwe who granted
Econet Wireless's licence in 1998, saying that 70% of people in the country had never heard
a telephone ring. "Today, 75% of people [in Zimbabwe] have a cell phone," he said "And I
want 75% of the people in Africa to have a bank account ... on a mobile phone."
"We're trying to build up a savings culture where people are encouraged to save, even if
they only have a dollar – for children's school fees, for transport, for the doctor. A savings
and credit infrastructure builds resilience." In his speech to microfinance experts at the
symposium in Turin, Masiyiwa recounted a story about the judge in Zimbabwe who granted
Econet Wireless's licence in 1998, saying that 70% of people in the country had never heard
a telephone ring. "Today, 75% of people [in Zimbabwe] have a cell phone," he said "And I
want 75% of the people in Africa to have a bank account ... on a mobile phone."
And Masiyiwa has even found a solution to the energy problem that could prevent him from
realising his dream. "We have developed solar charging stations where people can go into a
kiosk and plug in their phone for free. Because our money is not made from someone
charging the phone. It's made from someone using the phone." By way of lessons learnt,
Masiyiwa says that in order to reach the unbanked, financial institutions – and
telecommunications companies – must design services that are practical, simple and
affordable. "I've got a customer who has a dollar in his pocket and has got to decide to have
some lunch, call his cousin or go to the doctor. We have to develop services with sensitivity
to the fact that in Africa our customers don't have the same disposable income as in New
Zealand, for example."
realising his dream. "We have developed solar charging stations where people can go into a
kiosk and plug in their phone for free. Because our money is not made from someone
charging the phone. It's made from someone using the phone." By way of lessons learnt,
Masiyiwa says that in order to reach the unbanked, financial institutions – and
telecommunications companies – must design services that are practical, simple and
affordable. "I've got a customer who has a dollar in his pocket and has got to decide to have
some lunch, call his cousin or go to the doctor. We have to develop services with sensitivity
to the fact that in Africa our customers don't have the same disposable income as in New
Zealand, for example."
But the billionaire businessman cautions that it's a mistake assume the poorest behave
differently to other customers. "Their behaviour and aspirations are no different from those
who have higher incomes," he says. "They want to use Facebook. They want to use
WhatsApp. We have to find ways for them to access those things with their very low
income."
differently to other customers. "Their behaviour and aspirations are no different from those
who have higher incomes," he says. "They want to use Facebook. They want to use
WhatsApp. We have to find ways for them to access those things with their very low
income."
HOUSE_OVERSIGHT_032161
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