Mamamoni Secures €250,000 Funding to Empower Women in Nigeria
Mamamoni, a pioneering fintech social enterprise based in Nigeria, has recently garnered significant attention by securing €250,000 in funding from the Challenge For Youth Employment (CFYE). This funding initiative, backed by the Netherlands Ministry of Foreign Affairs, aims to bolster youth employment and has previously collaborated with notable organizations such as SheLeads Africa, ReelFruit, Utiva, Stutern, and Co-Creation Hub in Nigeria. With over 30 businesses in its Africa portfolio, CFYE is committed to fostering sustainable economic growth across the continent.
Funding Structure and Goals
The funding will be disbursed over a two-year period, contingent upon Mamamoni meeting specific milestones. This financial support is earmarked for expanding Mamamoni’s network of female agents, a crucial step in enhancing financial inclusion for women in Nigeria. VFD Microfinance Bank will play a pivotal role in this expansion, providing the necessary support and resources.
The Vision Behind Mamamoni
Founded in 2014 by Nkem Okocha, Mamamoni was established with a clear mission: to empower low-income women in Nigeria by equipping them with the skills and resources needed to achieve financial independence. Initially, the organization focused on providing microloans sourced from individuals and investment clubs. However, as demand surged, Mamamoni pivoted to collaborate with financial partners to sustain its lending operations.
Transition to Agency Banking
In 2022, Mamamoni transitioned to an agency banking model, which has proven to be a game-changer. The organization now boasts a network of 500 female agents who process over ₦3 billion monthly across ten states. This model not only enhances financial access but also creates job opportunities for women, allowing them to serve their communities effectively.
Okocha emphasizes the importance of a female-only agent network, stating, “We decided to go the route of female-only because that is what we do as an organization; we empower women.” This approach addresses cultural and religious barriers that often prevent women from engaging in financial transactions with male agents.
The Role of Agency Banking in Financial Inclusion
Agency banking has significantly contributed to Nigeria’s financial inclusion efforts. With nearly 2 million agents nationwide, the model has facilitated access to financial services for underserved populations. However, a major challenge remains: the cost of providing Point of Sale (PoS) terminals. Many financial institutions have either subsidized these costs or offered flexible repayment terms to encourage agent participation.
Overcoming Challenges with PoS Terminals
Recognizing that many of its target market may struggle to afford PoS terminals, Mamamoni has developed a unique approach. The fintech provides these terminals after the payment of a caution fee, although Okocha notes that not all agents are required to pay this fee. “What we’re very particular about is that we want to create an opportunity for these women to start earning,” she explains. For some early agents, Mamamoni has even provided devices for free to kickstart their journey.
Training and Support through the Mamamoni Foundation
In addition to its financial services, Mamamoni extends its impact through the Mamamoni Foundation, which offers training programs for low-income women. This initiative includes in-person training and the SheSABI app, designed to equip women with essential skills. The foundation also serves as an onboarding platform for new agents, ensuring they are well-prepared before entering the mobile banking space.
Moreover, Mamamoni provides affordable health insurance options for specific illnesses through partnerships, accessible exclusively via Mamamoni agents. For as little as ₦1,000, women can secure health coverage, further enhancing their financial security.
Funding History and Future Aspirations
Before this recent funding, Mamamoni had received less than $100,000 from various organizations, including the Tony Elumelu Foundation and Seedstars. Okocha acknowledges that the organization’s social enterprise model may deter some investors due to its high-risk nature and the need for patient capital. “It’s not fancy for investors because it requires a lot of patient capital,” she explains, highlighting the challenges of attracting investment in this sector.
Despite these hurdles, Mamamoni has positively impacted over 50,000 women through its initiatives. Looking ahead, the fintech aims to expand its agent network to over 2,000 women by the end of 2024. Additionally, it has launched Herpay, a payments app targeted at women across various social and economic classes, with plans to onboard 500,000 women by the same deadline.
Conclusion
Mamamoni’s journey exemplifies the potential of fintech to drive social change and empower women in Nigeria. With the recent funding from CFYE, the organization is poised to expand its reach and continue making a meaningful impact in the lives of countless women.