Africa: Qatar to invest $ 200 million in financial inclusion in sub-Saharan Africa

Qatar Investment Authority (QIA), on July 30, signed an agreement that will allow it to invest up to $ 200 million and obtain a minority stake (approximately 7.6%) in the capital of Airtel Mobile Commerce, the branch of the telecommunications operator Airtel Africa, which is dedicated to mobile money activities.

The sovereign wealth fund through which the Emirate of Qatar deploys its investments in the world is thus giving itself the opportunity to take advantage of a sector of activity that is showing solid growth. For the first three months of its 2021/2022 year which ended at the end of last June, Airtel Money transactions reached $ 14.6 billion, up 62.7% compared to the same period. in 2020.

This is a better performance than that of the quarter ending at the end of March 2021, when the value of transactions ($ 12.8 billion), was only up 51.7%. This growth is also reflected in revenues, with profit after taxes and depreciation of $ 57 million.

And the customer base of 23.1 million people allows us to hope for an acceleration of financial performance in this segment. But beyond being an investment with proven profitability, Qatar with this investment project, will provide the means to learn more about the progressions and trends of financial inclusion in sub-Saharan Africa.

“We are delighted to be relying on Airtel Africa to promote financial inclusion among the large and growing population of sub-Saharan Africa,” said Mansoor bin Ebrahim Al-Mahmoud, Managing Director of the Qatar Investment Authority, commenting on the announcement of the transaction.In Africa particularly, this inclusion is being built every day.

More and more people are using mobile money as a means of payment, savings, or access to credit. Regulations are becoming easier as authorities in different countries understand the industry better, transactions between operators increase the possibilities, and cross-border transfers gain ground. An important pillar of its development is also the growing nexus between banks and mobile money.

In October 2019, an agreement was announced between Airtel Africa and Ecobank, which is the largest banking institution on the continent with direct activities in around 30 African countries. However, Qatar since September 2014 has been a strategic shareholder of Ecobank Transnational Incorporated, the parent holding company of the pan-African banking group, through the Qatar National Bank, also controlled by the Qatar Investment Authority.