How Mukuru is reshaping aid disbursements, payroll and bulk commercial payments in Malawi and Zimbabwe – Africa.com
Advanced (www.Mukuru.com) is a leading next-generation financial services platform that provides affordable and reliable financial services to a customer base of more than 16 million people in Africa, Asia and Europe. The company is committed to continuously building a strong, reliable and resilient financial payments infrastructure, giving customers access to value-added new physical and digital services, and changing the landscape of commercial and aid payments through its Enterprise Payments Platform (EPP).
EPP is a safe, efficient, secure and cost-effective collection and bulk payment solution that builds on the successful use cases of Mukuru’s well-known remittance services.
This case study explores how Mukuru’s EPP addresses challenges related to aid payments, wages, and business transactions in underserved communities, including limited financial infrastructure, high transaction costs, and issues around security, speed, and regulation.
It explores how the EPP is revolutionizing bulk payments in these key sectors, with a focus on Malawi and Zimbabwe, by solving the difficulties businesses and aid organizations face in delivering services to remote areas.
challenge
Mukuru Enterprise Market Development Manager Tererai Mare explained that before EPP, businesses and non-profit organizations had to rely on traditional methods such as mobile money and banks to facilitate bulk payments. “These methods have limitations – high transaction and redemption fees, delays and limited coverage in rural areas,” Marais said. “These issues hinder the effective distribution of aid and management of wages, particularly in disadvantaged communities.”
Aid organizations face significant barriers to making large payments, while remote communities have limited access to affordable and accessible financial services. This has caused delays in getting aid to those in need and increased financial pressure on businesses.
solution
EPP is built on Mukuru’s extensive person-to-person physical and digital payments infrastructure across Africa. Marais explained that the platform is known for its reach and liquidity, which has many benefits.
These include:
- Instant payment: Funds reach beneficiaries instantly through cash collection points or digital wallets.
- Traceability: The platform provides complete transaction tracking, thereby increasing transparency. This is critical for financial reporting aid agencies to ensure continued funding.
- Competitive fees: Reducing costs benefits both businesses and nonprofits.
- Extensive network: Mukuru’s branch, stall and mobile payments teams and rich network of partner locations provide excellent service coverage across southern and eastern Africa.
- Safety: The best technology and processes ensure transaction security.
- flexibility: The EPP meets aid, business and social grant distribution needs.
Aid agency application:
Malawi
Mukuru Malawi Corporate Sales Manager Chiyembekezo Ken Ndala said the company worked with the CADECOM national office to carry out emergency flood relief following the recent cyclones. “CADECOM used the Mukuru platform to reach 4,520 households in multiple underserved areas,” said Ndala. The timely release of funds enables families to recover quickly and meet their basic needs.
Mukuru also partners with Yamba Malawi to provide monthly stipends to teenage mothers. “Yamba Malawi supports teenage mothers, receiving $20 each per month for 12 months and an additional $100 as seed funding after six months. This funding helps them care for their children and start small businesses to break the cycle of poverty,” Endara explained. As an ongoing project, Mukuru has disbursed over US$100,000 (MK183,600,000) to these beneficiaries.
Zimbabwe
Mukuru Business Group Director Michael Scott said Mukuru has a wide range of partnerships with United Nations agencies, including UNICEF, the International Organization for Migration (IOM) and the World Food Program (WFP).
“Mukuru was awarded a contract by WFP to deliver monthly cash grants to refugees in Tongogala refugee camp. The EPP platform enables the efficient delivery of essential emergency funds to this vulnerable community and enables end-to-end traceability. “Scott explained.
Scott explained that Mukuru has been awarded the prestigious long-term agreement by UNICEF and the International Organization for Migration (IOM), underscoring its capability and reliability in delivering essential financial services across Africa. Under these agreements, Mukuru facilitates payments to beneficiaries under the Zimbabwe Emergency Social Cash Transfer Program while providing payroll services and payments to suppliers and workshop participants.
International NGOs such as Action Contre la Faim have partnered with Mukuru to provide cash transfers to remote households through Mukuru’s mobile payment service. Mukuru’s mobile teams arrange travel to these hard-to-reach areas and regularly provide financial services, supporting basic levels of financial inclusion and social advancement that would otherwise not be possible.
Payroll and Business Applications:
Mare explained that Mukuru can also cater to the different needs of businesses that need to pay employees, customers or small suppliers who may not have bank accounts. “Many workers are paid low wages and bank accounts are unaffordable due to high transaction and maintenance fees. The EPP platform helps these workers receive payments efficiently without the need for cashing out or ongoing account fees, thereby addressing a significant gap in financial inclusion.”
On the commercial side, Mukuru works with heavyweights in Zimbabwe’s cotton and tobacco industry such as Cottco and Premier Tobacco Auction Floors to facilitate payments to small-scale farmers. “These farmers, who often don’t have bank accounts, travel from far and wide to sell or auction their goods. Mukuru’s EPP ensures they receive payment safely and quickly. Mukuru Cash Vouchers are as trustworthy as USD cash that can be redeemed, but in round-trip auctions It’s safer to carry on long trips to the field,” Mare added.
in conclusion
Mukuru’s EPP platform redefines bulk payments and aid distribution for organizations struggling with traditional methods. Whether providing payroll or commercial settlements to businesses, or providing emergency assistance to vulnerable communities, Mukuru provides an efficient, transparent and secure service.
With its vast network and proven ability to reach the most remote areas, Mukuru continues to drive financial inclusion while streamlining bulk payments, reducing transaction costs, increasing traceability and accountability, and minimizing delays – which Crucial for providing assistance.
Distributed by APO Group on behalf of Mukuru.
Editor’s note:
Mukuru is Southern Africa’s leading next-generation financial services platform, providing affordable and reliable financial services to a customer base of over 16 million across Africa, Asia and Europe.
With over 100 million transactions to date, our core focus is on providing international remittances and we have developed a range of services to meet our customers’ broader financial needs. We currently operate in over 60 countries and over 500 remittance channels.
We are a customer-centric business and as such, we serve our customers through physical and digital channels, through various payment methods (cash, cards, wallets) and through a range of engagement platforms including WhatsApp, USSD, Contact Centre, App, website, agents and network of branches and booths.
Mukuru is listed as one of the top 100 global cross-border payment companies for the fifth consecutive year in the 2024 FXC Intelligence Top 100 Cross-border Payment Companies (https://apo-opa.co/41825jC), one of only six African companies to receive this honor.
In 2023, Mukuru was officially ranked sixth on the LinkedIn list of top companies in South Africa.
Mukuru was awarded the Fintech Innovation of the Year Award at the 2023 Africa Tech Festival Awards for innovation and excellence, recognizing the transformative power of financial technology in driving economic growth, financial inclusion and digital transformation.
In 2024, Mukuru received the IAMTN Payment Network Customer Experience Excellence Award for setting a high standard of excellence in customer satisfaction in cross-border payment services. In addition, Mukuru has been officially recognized as a Top Employer in South Africa for 2024 by the Top Employers Institute.
For more information see https://www.Mukuru.com.
Media enquiries:
Amara Kutbodine:
ammaarah@duomarketing.co.za
(+27) 71 529 6449
Kgomotso Herakudi:
kgomotso.hlakudi@mukuru.com
(+27) 73 333 1672
Mthokozisi Dube:
mthokodube09@gmail.com
