19 December 2023
MTC plans to launch mobile financial services in Namibia in 2024. This will allow the company's subscribers to send and receive money, make digital payments, withdraw money from an ATM, etc.
The services will be provided by WGA Proprietary Limited, a dormant subsidiary of MTC which will trade under the name MTC Maris and operate independently of MTC, with a separate board of directors, its own workforce, and its own corporate identity.
MTC obtained an electronic money license from the Bank of Namibia in November. It has also signed a strategic partnership with Vodacom Financial Services.
Mobile financial services are expected to generate revenue growth from the first day of operation. However, the company does not expect the business to break even within the first three years of operation based on the experience of other mobile financial services operators in Southern Africa, due to the high cost of implementing the solution.
MTC already operates MTC Money, a mobile payment solution that allows customers to use their mobile phones to transfer, withdraw, deposit money, purchase airtime and electricity, pay bills and make payments at points of sale (POS). The launch of mobile financial services is part of its transition from a communications service provider to a digital service provider, in line with its long-term growth strategy.
“By extending mobile financial services to many unbanked and underbanked Namibians, we will make further progress in closing the digital divide,” said MTC in a statement.
