Head of Terms above Africa

Monitise has announced a Heads of Terms agreement with Made In Africa to launch a mobile banking and payments platform in East Africa. The proposed partnership will see the establishment of a joint venture, Monitise East Africa, with 51% owned by Monitise and 49% owned by Made In Africa.

Monitise East Africa will cover Uganda, Tanzania, Rwanda, Burundi, Democratic Republic of Congo, Kenya, Sudan and Zambia. It will bring a range of banking and payment services, delivered using the secure Monitise platform, to a potential audience of over 220m. Mobile phone ownership is currently growing at 50 per cent per annum across Africa but 75 per cent of the population lacks access to modern financial services.

For the first five years of the agreement an annual license fee of £0.8m plus volume based royalties will be payable to Monitise from Monitise East Africa. It is expected that the contract and venture will be formalised by July 2008.

Monitise chief executive Alastair Lukies said: ‘Historically, the limited reach of the physical branch network in many African countries has been an inhibitor to the adoption of banking services.

‘However, the remarkable and inspiring progress made by organisations such as Vodafone and Safaricom through M-PESA has demonstrated the potential of the mobile handset in delivering financial services to the African mass market.’