MFS Africa has partnered with MVola to facilitate international money transfers into the country. This collaboration aims to enhance financial inclusion and promote economic development in Madagascar.
The partnership marks a significant milestone as MFS Africa becomes the first aggregator to integrate with Telma, Madagascar’s leading Mobile Network Operator (MNO) with a 70% market share. This integration enables seamless inbound remittances from Europe, the US, and the UK, as well as MNO-to-MNO transfers from the rest of Africa, fostering a smoother flow of funds into Madagascar.
Nika Naghavi, Group Head of Growth at MFS Africa, highlighted the challenges faced by Madagascar in providing financial services due to its rural landscape and infrastructural limitations. He emphasized how this collaboration with MVola, a market leader, would open new international payment corridors, connecting Malagasy mobile money accounts with the global financial network.
Madagascar boasts over 10 million mobile money accounts, surpassing the number of traditional bank accounts. Mobile money services are widely used for various transactions, including bill payments, peer-to-peer transfers, savings, and borrowing. Additionally, the country receives substantial remittances from abroad, with France being its largest sender market, contributing to over $700 million in remittance inflows in 2022, according to the World Bank.
Sidali Stiti, Chief Commercial Officer at MVola, emphasized the importance of enabling instant receipt of remittances into mobile money accounts, ensuring affordable and quality financial services for every Malagasy. MVola, established in 2010, has played a vital role in enhancing financial inclusion by offering digital services, such as bill payments and merchant transactions. It became Madagascar’s first Electronic Money Institution in 2018 and obtained a banking license in 2021, becoming the country’s pioneer digital bank.
This collaboration not only strengthens MFS Africa’s position in Madagascar but also expands its market share, capturing 100% of the mobile money market. By connecting the Malagasy diaspora with their families through a higher volume of daily remittances, this partnership contributes significantly to the country’s financial inclusion and economic growth.