Mamamoni: Empowering Women Through Financial Inclusion
In a significant stride towards enhancing financial inclusion in Nigeria, Mamamoni, a fintech social enterprise, has recently secured a €250,000 funding grant from the Challenge For Youth Employment (CFYE). This initiative, financially backed by the Netherlands Ministry of Foreign Affairs, collaborates with various organizations, including SheLeads Africa, ReelFruit, Utiva, Stutern, and Co-Creation Hub in Nigeria. With over 30 businesses in its African portfolio, CFYE aims to support innovative solutions that empower youth and promote sustainable employment.
Funding for Growth
The funding granted to Mamamoni will be disbursed over two years, contingent upon the startup meeting specific milestones. This financial boost is particularly aimed at expanding Mamamoni’s network of female agents, a mission that will be supported by VFD Microfinance Bank. This partnership is expected to enhance Mamamoni’s operational capacity and outreach, allowing it to better serve its target demographic of low-income women.
The Vision Behind Mamamoni
Founded in 2014 by Nkem Okocha, Mamamoni is dedicated to empowering low-income women in Nigeria by equipping them with the skills necessary for financial independence. The enterprise has gained recognition for its innovative approach to financial services, focusing on the unique challenges faced by women in accessing financial resources. With the recent funding, Mamamoni is poised to significantly scale its operations, reaching more women and providing them with essential financial tools.
Transitioning to Agency Banking
Initially, Mamamoni provided microloans sourced from individual donors and investment clubs to support women’s businesses. However, the overwhelming demand for loans soon outstripped available funding, prompting Mamamoni to seek partnerships with financial institutions for loan provision. In 2022, the company made a pivotal shift to an agency banking model, establishing a network of 500 female agents across ten states who collectively process over ₦3 billion monthly.
Addressing Cultural Barriers
Mamamoni’s female-centric approach is rooted in its mission to empower women while addressing cultural and religious barriers that often hinder women from conducting financial transactions with male agents. This focus on female agents not only promotes gender equality but also fosters a supportive community where women can thrive financially.
The Challenge of PoS Terminals
One of the significant challenges in the agency banking sector is the high cost associated with acquiring Point of Sale (PoS) terminals. To mitigate this issue, many financial institutions subsidize the costs or offer flexible repayment terms. Recognizing that many of its agents may struggle to afford these terminals, Mamamoni has implemented a policy to provide them upon payment of a caution fee. While the exact fee remains undisclosed, Okocha has clarified that not all agents are required to pay it, effectively reducing the financial burden on those who wish to conduct transactions.
Empowering Women Through Training
Mamamoni goes beyond just providing financial services; it actively empowers women by offering training programs designed to equip them with the skills needed to succeed as agents. The Mamamoni Foundation plays a crucial role in this initiative, providing in-person training sessions and access to the SheSABI app, which serves as both a training resource and a recruitment platform for new agents. For a minimal fee of ₦1,000, agents can also access health insurance for specific illnesses through partnerships, although this insurance is only available via a Mamamoni agent.
Overcoming Funding Challenges
Before securing the recent funding, Mamamoni had raised less than $100,000 from organizations such as the Tony Elumelu Foundation and Seedstars. Okocha attributes this limited funding to the company’s social enterprise model, which may not appeal to traditional investors seeking quick returns. She describes the model as requiring “patient capital,” acknowledging the high-risk nature of serving low-income women who may have limited repayment capabilities.
Impact and Future Plans
Despite the challenges, Mamamoni has positively impacted over 50,000 women since its inception. Okocha is determined to expand the fintech enterprise’s reach even further in the coming years. By the end of 2024, Mamamoni aims to grow its agent network to over 2,000 women. Additionally, the company plans to launch Herpay, a payment app designed to cater to women across various socio-economic classes. Through Herpay, Mamamoni intends to offer lower transaction fees and onboard 500,000 women by the end of 2024.
Mamamoni’s journey exemplifies the potential of fintech to drive social change and empower underserved communities. With its innovative approach and commitment to women’s empowerment, Mamamoni is not just transforming the financial landscape in Nigeria but also paving the way for a more inclusive future.