15th May 2008 10:39
15 May 2008
MONITISE PARTNERS WITH MADE IN AFRICA TO LAUNCH ITS MOBILE BANKING AND PAYMENTS SERVICE IN EAST AFRICA
Monitise plc (LSE: MONI.L), the leaders in mobile banking and payments, today announced that it has signed Heads of Terms with Made In Africa, the organisation which is heading east African economic growth, to launch its mobile banking and payments platform in East Africa. The proposed partnership will see the establishment of a joint venture, Monitise East Africa, which will be 51% owned by Monitise plc and 49% owned by Made In Africa.
Monitise East Africa will cover Uganda, Tanzania, Rwanda, Burundi, Democratic Republic of Congo, Kenya, Sudan and Zambia, bringing a range of banking and payment services, delivered using the secure Monitise platform, to a potential audience of over 220 million people. With mobile phone ownership currently growing at 50%* per annum across Africa, coupled with 75%** of the population without access to modern financial services, both partners believe the opportunity for mobile banking and payments is significant.
Under the agreed Heads of Terms, an annual license fee of £0.8 million (UK Sterling), plus volume based royalties, will be payable to Monitise plc from Monitise East Africa for the first five years, to be capped at £1.8 million per annum. Following this, an extension to these terms may be granted, subject to terms being agreed between both parties. It is planned that the contract and joint venture will be formalised by July 2008.
Chris Cleverly, co-founder, Made In Africa said: "The lack of access to banking services in East Africa has been a significant obstacle to social and financial mobility across the region. However, the growth in adoption of mobile phones has already seen the development of a 'home grown' micro industry, with communities using pre-pay phone credit as a virtual currency to pay for goods and services. Our objective in working with Monitise plc to launch Monitise East Africa is to provide a sustainable mobile banking and payments framework which spreads the benefits of electronic cash to all, while providing the 'technology leap' which has inhibited the adoption of banking services through fixed infrastructure."
Alastair Lukies, chief executive, Monitise plc said: "Historically, the limited reach of the physical branch network in many African countries has been an inhibitor to the adoption of banking services. However, the remarkable and inspiring progress made by organisations such as Vodafone and Safaricom through M-PESA has demonstrated the potential of the mobile handset in delivering financial services to the African mass-market. As in all the territories in which we work, Monitise East Africa will be an open and inclusive ecosystem, which we believe will complement and enhance the existing financial services currently available across the region."
"The launch of Monitise East Africa, in partnership with Made In Africa, offers Monitise plc a significant platform for growth, demonstrating the transferability of our technology on an international scale and its potential in the world's most high growth, high need environments."
* GSMA September 2006
** African Business Magazine October 2007
Notes to Editors
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Contacts: |
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Monitise plc |
Tel: 020 7868 5200 |
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Duncan McIntyre, Chairman |
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Alastair Lukies, CEO |
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Ben Evetts, Head of Communications |
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Financial Dynamics |
Tel: 020 7831 3113 |
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Harriet Keen |
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Haya Chelhot |
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About Made In Africa
Established by three individuals; Ozwald Boateng OBE, Prince Hassan Kimbugwe and Christopher Cleverly, Made in Africa was created with the aim of exposing African businesses to international investment and capital markets. The group acts as the umbrella for a number of companies, each of which has a dedicated purpose, management, executive and advisory team. In Uganda their vehicle, Made in Africa IB (EA) Ltd, is the founding member of the Ugandan securities exchange and is licensed by the Capital Markets Authority.
For further information on Made In Africa, please contact Ben Evetts at: [email protected]
About Monitise plc
Monitise plc (MONI.L) is a specialist in mobile banking, payments and commerce technology. It has engineered the world's first mobile banking ecosystems, which allow customers of multiple banks and mobile operators to perform banking and payment transactions directly from their mobile handset.
With live services in the UK and the USA, where it has delivered the MONILINK and Monitise networks in partnership with VocaLink and Metavante Corporation respectively, the Company is currently working with international partners to deliver similar safe, secure mobile banking & payment services in territories worldwide. Current key partners include VocaLink, Metavante, HSBC, first direct, Alliance & Leicester, Royal Bank of Scotland, NatWest, Vodafone, Orange, O2, T-Mobile and Hutchison 3G.
Monitise was recognised as a 'Technology Pioneer' by the World Economic Forum in 2006; 'Mobile Innovation of the Year' by The Banker Magazine in 2007 and awarded the Innovation in Messaging Award 2007 by the Mobile Messaging Association.
www.monitisegroup.com
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