Controling Disorder in the Cameroon Money Exchange Market

The Ministry of Finance has issued a communique banning the illegal manual exchange of money. As a result, individuals and operators involved in this illegal money exchange operations run the risk of being sanctioned by provisions provided in the Law in force (No. 02/CEMAC/UMAC/CM of 29 April 2000). In order to ensure that the general public exchange money at the right locations, MINFI published a list of 25 authorized manual money exchange institutions in Cameroon.


This decision from MINFI follows the recent warning sent out by BEAC, last March 2017, to Telco operators providing international mobile money services out of the CEMAC zone. The firm implementation of the above regulation in the Cameroon money exchange sector clearly indicates the existing disorder in the market as well as the tough challenges faced by legal market operators (commercial banks, microfinances and remittance institutions).
As a result, the ban and enforcement of legal sanctions on these clandestine manual money exchange operators in Cameroon, shall go a long way to minimize disorder and to put order in the Cameroon finance sector, in general, and money exchange market, in particular.
The authorized money exchange operators will be able to see their profit margins grow by applying the official transaction fees and customers will be able to avoid security or fraud related risks by visiting the right exchange points for their transactions.

The authorized money exchange and remittance operators will be able to see their profit margins grow by applying the official transaction fees and customers will be able to avoid security or fraud related risks by visiting the right exchange and remittance points for their transactions.

 

NATIONAL

 

MINFI Approves 25 Institutions for Manual Money Exchange Transactions in Cameroon

The Ministry of Finance in Cameroon (MINFI) has issued a communique banning the illegal provision of manual money exchange services by unauthorized individuals and agencies in Cameroon. This decision was taken after an observation of the worrying disruption caused by the growing number of the illegal money exchange operations carried out, especially, in metropolitans such as Yaounde and Douala.

In a bid to restore law and order in the Cameroon Finance and Remittance sectors, MINFI placed a ban on all individuals providing the manual money exchange services illegally or else, face the sanctions provided by regulation following Law No. 02/CEMAC/UMAC/CM of 29 April 2000.

Following the provisions in the above Law, MINIFI says only currency exchange agencies, commercial banks and Microfinance institutions can do manual money exchange. In this light, the regulator has thus published a list of 25 institutions which have the authorization to provide the exchange services.

They include: Express Exchange International, Finance et Change International, Societe Financiere de Change Express, Societe Promoteur, Money Flash, Cameroon Exchange and Business, Cameroon Express Exchange, Express Cash, Afriexchange, CECIC, B.M. International Travel Service, GLOBEX, SOFITOUL, CAMEX, L.K. Express Exchange, World Exchange, Montreal Exchange, Trade and Change Agency, Gajo Trading Company, Cameroon International Change, Boureima Exchange, Alliance Financial Cameroon, La Medina, Leader International Exchange and Framo Travel Agency.

Source: Cameroon Tribune, 21/4/2017

 

Express Union Offers Tenders for Franchised Clients & Distributors to Expand Its EU Mobile Network in Cameroon

A few months back, Express Union announced its plan to implement a market penetration strategy for EU Mobile, its mobile money platform.

The launch of franchised clients and distributors was a move adopted my Express Union to boost its market presence, reach more customers and increase the active usage of its digital service. The franchised clients and distributors are third-parties who shall be granted the authorization to provide mobile money services under the EU Mobile banner.

The franchised clients shall include: call-box operators, restaurant owners, shop owners, traders, supermarkets, off licenses / snack bar owners, etc. They shall provide services such as: mobile remittances, payment of ENEO bills and cash deposit/withdrawals. Commissions for each transaction shall be as high as 40%, whereas no caution shall be required from the franchised distributors. Moreover, they shall also receive support form Express Union in the form of micro-credits to further develop their respective businesses.

These EU Mobile Franchised Clients and Distributors also comes as a boost to the just launched sidewalk kiosks by Express Union to gain more market grounds and maintain its leadership.

Source: Cameroon Tribune, 26 /4 /2017

 

INTERNATIONAL

 

Kenya: Safaricom Compensates M-Pesa Users with 24 Hours of Free Mobile Money Transfers for Network Outage

On Monday, 24 April 2017, Safaricom encountered a technical problem that caused network outage and left millions of customers stranded, not able to make calls, send messages nor transact on M-PESA.

In spite of the repairs made to resolve the technical hitch, Safaricom’s services remained sporadic throughout Monday night and Tuesday morning and only returned to normality in the afternoon.

The Communications Authority of Kenya (CA) said it would hold back on imposing sanctions on Safaricom until a detailed report on the incident is submitted.

Safaricom chief executive Bob Collymore, whose time at the helm of Safaricom is expected to come to an end this year, gave M-Pesa users 24 hours of free mobile money transfers as a balm for the inconvenience and losses suffered over the two days.

Safaricom has 71.6 market share of Kenya's mobile subscription and is the largest in the mobile money business that moves an average of Sh9 billion a day via M-Pesa. Entities as diverse as utility firms, hospitals and banks have hooked up their systems to M-Pesa.

The outage on the Safaricom network also comes at a time when Kenyans are concerned about the privacy and integrity of telecommunication services in the context of the upcoming General Election.  

Source: http://mobilemoneyafrica.com/content.php?id=3338

 

Africa: WorldRemit to Double Mobile Payment Revenue & Transaction Volume by 2020           

The seven-year-old British money-transfer company sees its revenue from transactions doubling by 2020 as more people, especially, on the African continent and in the diaspora access digital platforms (mobile phones & websites) for payments and remittances.

Worldremit, in which Facebook Inc.-backer Accel Partners LP invested $40 million in 2014, will this year open a regional office in South Africa, its largest market on the continent in terms of money-transfer value. Another site is scheduled to start operating in Kenya, where the London-based business sees Africa’s highest number of individual transactions.

According to Worldremit’s founder and Chief Executive Officer Ismail Ahmed in an interview held in Nairobi, Worldremit should, in the next two years, be doubling its volume every year. Africa accounted for half the company’s 2016 revenue of 41 million pounds ($52.6 million).

WorldRemit is tapping into growing demand in Africa for mobile-payments, which are popular in places where banks are scarce or unreliable yet internet speeds are fast enough to handle finances through smartphones. The company has partnerships with Safaricom Ltd., Kenya’s biggest company, and Johannesburg-based MTN Group Ltd., which are both boosting sales growth by investing in the market.

Source:   http://mobilemoneyafrica.com/content.php?id=3333

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