Mamamoni, a Nigerian fintech social enterprise, has received a significant boost in its mission to empower low-income women through financial inclusion. This €250,000 grant from the Challenge For Youth Employment (CFYE) will fuel Mamamoni’s expansion plans, enabling them to reach more women and offer greater support.
From Microloans to Agency Banking:
Founded in 2014 by Nkem Okocha, Mamamoni initially focused on providing microloans funded by individuals and investment clubs. However, the overwhelming demand for financial services led them to shift towards an agency banking model in 2022. This move proved pivotal, allowing them to build a network of 500 female agents across 10 states, processing over ₦3 billion monthly.
Empowering Women, Addressing Challenges:
Mamamoni’s focus on female agents stems from their dual goals:
- Empowering women: This aligns with their mission of financial independence and addresses cultural barriers faced by women in some communities.
- Financial inclusion: Their agency banking model contributes to the national effort of getting millions of Nigerians into the formal financial system.
However, a major challenge in this sector is the high cost of Point of Sale (PoS) terminals. To overcome this hurdle for their target audience, Mamamoni offers these devices on a flexible payment plan or even free of charge in some cases. This eliminates a significant financial barrier for aspiring agents.
Beyond Transactions: Training and Support:
Mamamoni goes beyond simply providing a platform for transactions. Through the Mamamoni Foundation, they offer:
- Training: In-person sessions and the SheSABI app equip women with the skills to excel as agents and manage their finances effectively.
- Health insurance: Offered at a minimal cost through partnerships, this crucial benefit further empowers their agents.
- Recruitment: The foundation serves as a gateway for women to become Mamamoni agents, equipping them with the necessary training and support before starting their journey.
Scaling Up and Reaching More:
Prior to this recent funding, Mamamoni’s social enterprise model, requiring “patient capital,” may have deterred certain investors. However, their positive impact on over 50,000 women speaks volumes.
With the CFYE grant, Mamamoni plans to:
- Expand agent network: By reaching 2,000 agents by the end of 2024, they aim to increase accessibility and reach even more women.
- Launch Herpay: This innovative payment app specifically targets women across various income levels. With lower transaction fees, they aim to onboard 500,000 women by 2024.
Mamamoni embodies the potential of social enterprise to create positive social impact and foster financial inclusion while achieving profitability. This story serves as an inspiration for other organizations seeking to empower individuals and bridge the financial gap in communities around the world.