M-PESA Micro-Loans Service, Fuliza, Lends Out Over $13 Million to Kenyans Daily...

Professor Adesoji Adesugba (NEPZA MD/CEO), Sameera Kimatrai (Binance Senior Legal Counsel), Luqman Edu (CEO Talent City), Sikiru Lawal (NEPZA Director). pic.twitter.com/73scHU4hYE

— NEPZA (@officialNEPZA) September 2, 2022

NEPZA, a governmental trade body in Nigeria, is seeking out Binance to help develop a virtual free-trade zone in the country.

This follows a meeting held in Dubai between NEPZA’s Managing Director, Mr Adesoji Adesugba, and Binance Executive Director for Business Development and Strategic Partnerships, Nadeem Ladki.

In full, NEPZA stands for Nigeria Export Processing Zones Authority and has the role of establishing and managing free zones that facilitate manufacturing and commercial activities in Nigeria.

Free economic zones, or special economic zones, are designated areas in which companies are taxed very lightly or not at all to encourage economic activity.

NEPZA is seeking to attract innovation to the virtual trade zone that it is proposing, and is seeking a partnership with both Binance and Talent City to create something similar to the Dubai Virtual Free Zone.

Speaking on the possible partnership with Binance, Mr. Adesugba said:

“We seek to break new grounds to widen economic opportunities for our citizens in line with the mandate of the Authority. Our goal is to engender a flourishing virtual free zone to take advantage of a near trillion dollar virtual economy in blockchains and digital economy.” – Managing Director, NEPZA

The meeting in Dubai was also attended by Talent City CEO.

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Here is a summary of M-PESA stats in H1 2022:

* $13.32 million disbursed daily on Fuliza
* $2.4 billion in total lent out on fuliza
* $166 million in total disbursed on M-Shwari pic.twitter.com/z2LPY6FpmM

— BitKE (@BitcoinKE) September 5, 2022

Fuliza, a micro-loan service offered on the M-PESA mobile money platform, sent out an average of $13.32 million daily in the first half of 2022.

In a similar period in 2021, the service lent out $10.9 million daily. According to local reports, over the first 6 months of 2022, Fuliza has sent out $2.4 billion to Kenyans in total.

Fuliza’s loan book is financed by local bank NCBA which is partnering with the mobile money giant to offer its platform that lets users send money, get loans, and make savings by relying on their mobile number accounts on a USSD platform.

According to the report in Kenya, the loan service, which is technically referred to as an overdraft facility, takes out 1.083% in interest, as well as an administrative fee that grows depending on the amount of transaction as well as regular transaction fees on M-PESA.

The two partnering entities, NCBA bank and M-PESA parent, Safaricom, have an agreement for sharing the funds.

For NCBA, the service has reportedly become a major source of income, and was responsible for 85.54% of all disbursements the bank made via digital platforms.

“Obviously given where the macros are we have continued to support our customers through this product.” – Chief Financial Officer, NCBA Group.

Besides Fuliza, NCBA also runs M-shwari in partnership with M-PESA in a much similar agreement, even though M-shwari offers larger loans.

In the last 6 months, NCBA digital loans totalled $2.8 billion, with 85.5% of these digital loans happening via both Fuliza and M-Shwari.

Here is a summary of M-PESA stats in H1 2022:

• $13.32 million disbursed daily on Fuliza
• $2.4 billion in total lent out on fuliza
• $166 million in total disbursed on M-Shwari

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