Vodafonewatch Report #88 Extract: Joseph to take charge of M-PESA push
21 January 2011
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Extract from Vodafonewatch, report #88. Click through for: the Executive Brief from this month’s report; the Report Snapshot; or to contact us for more information about the full 46-page report, this industry standard monthly report service, and ongoing subscription access.
Joseph to take charge of M PESA push — report
A report in Kenyan newspaper The Nation claims that Michael Joseph, the recently retired Chief Executive of Safaricom (Vodafonewatch, 2010.03 and 2010.07-08), is set for a new role driving regional expansion of M PESA, the OpCo’s much vaunted mobile remittance service — and, by extension, Vodafone Money Transfer (VMT), the offering’s underlying platform, which Vodafone has been sluggishly attempting to bring to new markets for at least 18 months (Vodafonewatch, passim).
Citing unnamed “sources at Safaricom”, the paper reports that Joseph is seen by Vodafone as uniquely able to help spread M PESA‘s reach to other African countries, including territories in which Vodacom Group is present, but has yet to deploy VMT — Democratic Republic of Congo, Lesotho, and Mozambique; and to “shore up” performance where Vodacom has launched the service, but achieved lower traction than Safaricom — South Africa and Tanzania. Ultimately, the plan would also be to push functionality to allow cross border remittances between those and other markets, the report adds.
“ M PESA is the most successful mobile money transfer service in the world, and, with Michael, is a sure bet to drive its regional expansion having been behind its growth in Kenya. ”
– The Nation’s source.
While at first glance the report seems slightly off the wall, and is unconfirmed, Vodafonewatch thinks the role and Joseph could in many ways be a good match.
Whether his position would be formal or informal, Joseph evidently has the requisite on the ground experience, gravitas, bull headedness, and public profile to push back the regulatory hurdles, operational challenges, and OpCo resistance, which all appear to have hindered Vodafone’s Group level Mobile Payments team in its bid to push rollout. He also knows the factors that have made M PESA such a success in Kenya (and stilted adoption elsewhere), and helped diversify the service with ‘premium’ offerings, such as business to consumer, e commerce, and mobile banking. He also has the ability to oversee and coordinate progress from his seats on Safaricom and Vodacom’s boards.
On a personal level, Joseph has regularly cited the rise of M PESA as one of his proudest achievements, and has indicated ongoing involvement in the service since relinquishing the Chief Executive position, by claiming to be “busy with both my responsibilities as a Director of Safaricom and the Vodacom Group, and with the potential international expansion of M PESA”.
For Vodafone, recruitment of Joseph to create a ‘regional’ M PESA remittance network suggests the Group remains committed to VMT expansion, despite frustration over the speed of rollout so far — its footprint is currently limited to Afghanistan, Fiji, Kenya, Qatar, South Africa, and Tanzania, and mooted rollout in India (see separate report). Vodafone Qatar’s recent, relatively smooth launch of domestic and international transfer may have shown the Group what can be done with strong buy in from both in country units and regulators.
A further, perhaps more mischievous interpretation, would be that the role offers an opportunity to keep the very media friendly Joseph busy, and draw a line between him and Safaricom’s core operations, helping to provide breathing room for new Chief Executive Bob Collymore.
[Further reference: Joseph to spearhead M PESA expansion in Africa -- The Nation, 29 December 2010.]
About Vodafonewatch
Report: #88
Covering: December 2010-January 2011
Published: January 2011
Next report: February 2011
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