The arrival of Africell Angola in 2022 has brought a number of exciting opportunities for mobile users looking for a wider selection of services – including financial services. After a successful entry into the telecommunications landscape in Angola, Africell officially launched its mobile money service, afrimoney, in April 2023.
Angola is characterized by a high percentage of underbanked individuals, estimated at around 50%, and by a significant informal sector. In this context, Afrimoney aims to bridge the gap between formal and informal economies through its mobile money service. Although Angola has a well-established network of banks, digital financial services have yet to make a substantial impact on improving financial inclusion.
According to the interview granted to the GSMA portal, the Interim Co-Director of the Afrimoney Group, Simon Andersson-Manjang, highlighted the challenges faced during market entry, the nature of the regulatory environment, and preliminary launch results. As Africell continues to roll out its mobile network across the country, Afrimoney aims to connect diverse customers and partners, and contribute to a more inclusive and digitized financial future for Angola.
According to Simon, what led Africell to launch Afrimoney in Angola is because it is an incredible country, and the company did not expect a warmer reception when they entered the market on the GSM side. “After just eight months of operations, we've captured an incredible 25% market share. Prior to Africell's entry, the market was dominated by a single state-owned operator, which meant that the country's mobile customers had no choice. This has led to many customers quickly signing up for Africell SIM cards, hoping to get better prices and quality of service. Encouraged by this positive reception, we have decided not to delay the launch of our mobile money service – Afrimoney - any longer. So, after just 12 months in the field, Africell launched Afrimoney".
Asked what is the current state of digital financial services in the country? Simon said that there are several banks, both local and international, most of which offer banking applications or, in some cases, agent banking services. As in most countries with significant natural resources, the financial services landscape is geared towards high-income clients, both individual and corporate. This means that there is huge opportunity in the rest of the economy. Despite the favorable regulatory environment, mobile money services launched in the past have failed to bring significant financial inclusion to Angola.
We're only six weeks into operation and we're still focusing on the fundamentals of getting a mobile money service up and running. We will put a lot of effort into product awareness and general financial literacy to educate the public about mobile money.
As Africell rolls out GSM services nationally and Afrimoney follows, we may see an increase in the use of urban-rural transfers as more and more inter-urban and rural areas are covered. Launching GSM and mobile money services at the same time is unusual, but it means we can create a lot of synergies and have a shared approach to capture the market.
According to Simon, the most difficult thing is to explain to the general public, and even some partners, what mobile money really is. It is a product that requires clear and consistent communication, the benefits of which can be better enjoyed through training or face-to-face experience. It is also important that people understand what everyday problems Afrimoney can solve.
Mobile Money is a volume game, so we look forward to expanding and continuing to improve our mobile money and financial literacy communication with our new user base in Angola. The rollout of GSM in other provinces is still ongoing, with Africell services currently available in Angola's two most populous and urbanized provinces – Luanda and Benguela. As the mobile business expands into new areas, mobile money will follow.
This article was originally published by the program GSMA Mobile Money.
