Picking up from where we left off...One of the things that came out of the Kasama training is that the mechanics of mobile money and the agent network are a little difficult to wrap one's head around. I will be dedicating one of my next posts to the mechanics of mobile money and the agent network, but since this posting was about our trainings I thought I would include one of the diagrams I ended up drawing during our trainings to show how an agent manages his/her float or cash liquidity.
The other part of this equation is managing the funds in an electronic bank account so that he or she can transfer on behalf of a client. I mean in reality, the agent is like it's own little bank...an agent must ensure that it has enough cash on hand to meet customer demand for it (for money transfer or loan pay outs) while at the same time having enough funds in an electronic account to transact (really, transfer) on behalf of a client to a third party or savings account (i.e. money transfers, or Consumer to Business bill payments, loan repayments or air time purchases).There is a constant deposit and withdrawal of money, and shifting of money from cash in hand to electronic in this agent model. Not being an expert in mobile banking (yet?), the biggest issue an agent faces is not having enough money for payouts, with the second one being not having enough electronic funds in his/her bank account to transact for clients. To this end, they are constantly converting cash funds into electronic or vice versa. As I mentioned in part I of my blog post on the topic, the financial education trainings also included educating the staff of Vision Fund Zambia, a microfinance institution, on how clients can use Zoona to receive and repay their loans, as well as receiving feedback on the challenges clients had with the platform. You may already be able to guess what I am going to say...but the more you think about it, the more you realize how much stress loan payouts can exert on an agent's liquidity, especially if loans are disbursed in groups. I will undoubtedly be addressing ways to combat these challenges during my time here in Zambia, but needless to say it is one of the big hiccups to growing mobile banking/payments too quickly. This is even more true when you are trying to support small and medium businesses as agents, where access to working capital is severely limited, if not non-existent. I am happy to report that the trip also gave me an opportunity to do some some wonderful sight seeing in the Northern province, thanks to our weekend layover there. We were told that a trip to Chishimba falls could not be missed and as you can see from the pictures, they were right :) The falls certainly did not disappoint and we were some of the only people there....well, that was at least until we stumbled upon a church choir who was recording in front of the falls. Left: Mutumuna, my MEDA bag, and me - up close and personal The church choir was gracious enough to let me snap a million photos of them and even take a few recordings that I will try to upload soon...well, all for the small fee of taking a Mizungu picture with every one of the male members you see to the right. Not sure why I have that kind of appeal, especially with the beautiful nature in the background, but I guess I am the exotic thing in the remote area of Zambia. Even so, such a small price to pay for such a gift. The other must see in Kasama is the ancient rock paintings. I was initially drawn to see this site after reading in the Lonely Planet that "Archaeologists rate these paintings as one of the largest and most significant collections of Ancient Art in Southern Africa." Sadly, the paintings (who I suspect are not all that well visited) are starting to fade and the tourism infrastructure leaves a lot to be desired. In fact, our guide didn't feel see the point of taking us to any more than two of the painting areas since there were pictures of the paintings in the visitor center and it was pretty hot out. :) After having traveled around a bit, I am now very much aware how much I had taken for granted the tourism infrastructure which is commonplace in the U.S., Canada and Europe.Had I not been so rudely interrupted by a massive wasp sting that left me writhing in pain, I was hoping I could press our guide into showing us more of the painting sites. Oh well.... After removing death grip from the plane arm rest, I was finally able to snap a photo of the view from the flight.