KABUL, AFGHANISTAN- USAID has signed innovation grants with three major Afghan mobile network operators: Etisalat, MTN, and Roshan M-Paisa to support the expansion of mobile money in Afghanistan. As a result of these grants, more than 100,000 Afghans will be able to use mobile money to transfer funds to friends and family members, grow their businesses, receive their salaries, and pay their utility bills.

 

Through the Mobile Money Innovation Grant Fund, USAID is laying the foundation for future development by supporting public-private partnerships to build innovative mobile money applications, increase the number of clients and agents, reduce opportunities for corruption, and serve as a catalyst for economic development.

 

At the innovation grant fund signing ceremony, USAID Deputy Mission Director Jed Barton encouraged all Afghan government ministries and USAID partners to consider using mobile money to improve service delivery efficiency and effectiveness. He noted that mobile money can improve both the transparency of government salary payments and the ease of bill payments. USAID sees mobile money as a foundational investment that can fundamentally transform the lives of Afghans, as has already been the case in other countries around the world.

 

“Through this fund and the technical assistance provided by USAID, and the focused efforts of key Afghan stakeholders, I am confident that mobile money services will serve as a catalyst to transform the Afghan financial sector, and improve the lives of Afghans across the country,” said Jed Barton.

 

The launch of Etisalat’s M-Hawala service today coincided with the signing of a $748,000 grant agreement with USAID. Through this grant, USAID is supporting Etisalat’s mobile money service, enabling customers to pay utility bills using mobile money services.

 

Etisalat Chief Commercial Officer Dr. Ali Asgharzadeh said, “Etisalat is proud to be leading the way in empowering the Afghan people by giving them access to banking products via their mobile phones. Our ultimate goal is to allow all Afghans access to affordable financial services on Etisalat’s national network.”

 

The Mobile Telecommunications Network Afghanistan (MTN) announced its partnership with USAID on November 27 at a $950,000 grant fund signing ceremony. The grant will assist MTN in expanding its mobile money services into rural areas and promote teacher salary payments using mobile money. Given that mobile money can improve the transparency of government salary payments, the partnership with MTN and the Ministry of Education will benefit teachers across Afghanistan.

 

“MTN has always been an active member of each and every community in which it operates, and with USAID’s partnership, we tread on yet another path toward progress and development, helping us to empower and support Afghan citizens,” commented Hassan Jaber, CEO of MTN Afghanistan.

 

The USAID Innovation Grant Fund to Roshan M-Paisa allows thousands of Mutahid Microfinance institution borrowers to receive and pay loans through the M-Paisa mobile money service. The $400,000 grant supports a project involving 15,000 to 20,000 borrowers in five provinces through a 12-month period. “M-Paisa, powered by Roshan, is pleased to work with USAID to extend the benefits of microfinance. Through M-Paisa, the country’s first mobile money service, microfinance organizations can expand quickly beyond traditional bricks and mortar, lower the cost to borrows, and concentrate on business development. In return, borrowers no longer have to travel large distances, receive better interest rates and can expand their businesses rapidly, contributing to the development of the country,” said Altaf Ladak, Roshan’s chief operating officer.

 

With the launch of their mobile financial services systems, these three network operators will enable millions of Afghans to enter into financial transactions. Both customers with bank accounts and those who previously never had a bank account will now have access to a “mobile wallet” that will allow them to make financial transactions via their mobile phones.