ICT applications

Library Resources

resource title type year resource
Taxing Mobile Phone Transactions in Africa: Lessons From Kenya Report 2019

view page
This resource appears in: ICT applications, Technology and outreach

The taxation on mobile phone-based transactions and on airtime has been introduced in Kenya and is spreading to other African countries. Some countries in sub-Saharan Africa view mobile phones as a booming sub-sector easy to tax due to the increasing turnover of transactions and the formal nature of such transactions by both formal and informal enterprises. The increasing tax burden on the sub-sector and the consumers, though, has raised concerns that the massive gains made in financial inclusion in developing countries made possible by retail electronic payments platform via mobile phone transactions may be reversed—resulting in a return to cash transactions.

This paper shows that taxation on mobile phone airtime and financial transactions may not expand the tax base significantly but, rather, may reverse the gains on retail electronic payments and financial inclusion. A higher tax rate on low-level retail electronic transactions mostly levied on low-income earners that are sensitive to transaction costs may discourage the use of mobile phone-based transactions, incentivizing them to revert to cash transactions to evade taxes and so less tax revenue. This trend will deal a big blow to the financial inclusion success witnessed so far.

The data so far available shows that the contribution of mobile money-related taxes is less than one percent of total tax revenue, a negligible contribution to Kenya’s total tax income, at high economic costs. These lessons are not just relevant for Kenya but also for other countries in Africa with such tax propositions. Introducing and increasing taxes on mobile phone transactions may risk stalling progress on digitization and fiscal policy design as well as revenue administration.

Author Njuguna Ndung’u
Publisher The Brookings Institution
Number of Pages 14 pages
Primary Language English (en)
Region / Country Africa
Kenya
Keywords taxation, digital financial services, mobile money, mobile transactions
Related Resources
Did You See My Tweet? Monitoring Financial Consumer Protection via Social Media Paper 2019

view page
This resource appears in: ICT applications, Technology and outreach

Social media is changing customer service by shifting the ways in which consumers seek resolution of problems and the channels that firms make available to consumers. The ability for consumers to directly, instantly, and publicly praise or chastise the service of a firm has led to increased accountability and new ways to remotely resolve customer issues swiftly.

In Kenya, the "#KOT" or "Kenyans on Twitter" community has become an important channel for public discourse on a wide range of topics. This includes financial services. In Kenya financial consumer protection via channels such as government authorities is still very limited, and cases of mistreatment of financial customers are commonly reported in the Kenyan media, often with no resolution for the consumers.

This frustration has led some to turn to social media to both attempt to resolve their problems and publicly call out consumer protection abuses. Through this active Twitter population, a clearer view is emerging of the extent and type of problems that occur with financial services and how providers and government agencies do—or do not—respond.

Author Rafe Mazer; Dan Onchieku
Publisher Financial Sector Deepening Trust Kenya (FSDK)
Number of Pages 26 pages
Primary Language English (en)
Region / Country Africa
Kenya
Keywords Social Media, Consumer Protection; Financial Inclusion
Related Resources
Credit to Merchants: Tienda Pago's Digital Solution for Fast-Moving Consumer Goods Case Study 2019

view page
This resource appears in: ICT applications

This case study aims to extrapolate some preliminary lessons from Tienda Pago’s model, including its challenges and potential for scale. The study is informed by distributor and customer interviews and qualitative research, which sought to map characteristics of merchant clients and analyze both drivers and barriers to product usage and uptake.

The Digital Lives of Refugees: How Displaced Populations Use Mobile Phones and What Gets in the Way 2019

view page
This resource appears in: ICT applications, Technology and outreach

Mobile money is available in 90 countries across the globe, including three-quarters of low- and lower-middle-income countries, making it the leading payment platform for a digital economy in emerging markets. For refugees, the vast majority of whom reside in the developing world (84 percent), mobile money offers a lifeline to better financial management. This is particularly true in harder to reach locations, where the prevalence of other financial services is often lower.

This report digs deeper into findings and recommendations across five thematic areas – one of which is mobile financial services – in three contexts: urban settings in Jordan, Kiziba camp in Rwanda and Bidi Bidi settlement in Uganda. Due to the low use of mobile money in Jordan – only one percent of refugees surveyed reported using mobile money – this portion of the research therefore focuses primarily on Kiziba camp and Bidi Bidi settlement.

Author Jenny Casswell
Publisher GSMA
Number of Pages 47 pages
Primary Language English (en)
Region / Country Africa
Jordan, Rwanda, Uganda
Keywords digital financial services, Disasters and Conflict, mobile money, Refugees
Related Resources
Making Digital Credit Truly Responsible Presentation 2019

view page
This resource appears in: ICT applications, Technology and outreach

Digital credit has emerged as a new and profitable service offering that has a great potential to increase financial inclusion. Yet, if it is not carefully managed, digital credit runs a great risk to exclude, over-charge, and create over-indebtedness.

During the first half of 2019, The Smart Campaign and the Social Performance Task Force (SPTF) commissioned Microsave Consulting (MSC) to study the current state of digital credit in Kenya and formulated recommendations for how to make digital credit delivery safer and more customer-centric. We propose that regulations be put in place such that delinquencies and defaults among loans below some fixed amount not be reported to the credit bureau so as not to unduly burden consumers. We also call for increased public awareness campaigns about how credit bureaus work and the consequences of default so consumers will better understand the risks involved in borrowing.

Publisher Center for Financial Inclusion at Accion; SPTF, Agence Francaise de Developpement, MSC
Number of Pages 105 pages
Primary Language English (en)
Region / Country Global
Keywords Consumer Protection, Credit Provision, Customer Centricity, Nano Loans, Interest Rates, digital financial services
Related Resources
Emerging Opportunities for the Application of Blockchain in the Agri-food Industry Paper 2018

view page
This resource appears in: ICT applications

Distributed ledger technologies (DLTs) have the potential to transform the global food system by introducing important efficiency gains along value chains, and improving trust, transparency and traceability. While large actors are likely to make fast and significant inroads in exploiting DLTs, small farmers and processors also stand to reap significant benefits, provided the technology is made accessible to them. This raises the question of how an enabling environment can be created for smallholders to harness these new technologies, and, at a broader scale, for DLTs, so that these contribute to improving the functioning of global food and agricultural markets.

This paper, by Mischa Tripoli and Josef Schmidhuber, seeks to make an initial contribution to the emerging public debate on this issue by providing an overview of DLTs and their application in food and agriculture, examining public policy implications for food security and rural development and identifying some potential challenges, risks and the way forward.

Author Mischa Tripoli Josef Schmidhuber
Publisher Food and Agriculture Organization of the United Nations and International Centre for Trade and Sustainable Development (ICTSD)
Number of Pages 40 pp.
Primary Language English (en)
Region / Country Global
Keywords Distributed ledger technologies
Related Resources
Digital Financial Services in Rwanda: Leveraging technology for maximum use of financial services Technical Note 2017

view page
This resource appears in: ICT applications

This dedicated FinScope Insight Note is aimed at highlighting the results of the ecosystem and usage of digital financial services in Rwanda. The FinScope Survey not only enabled the assessment of the landscape of financial access in Rwanda, but also provided a benchmark for repeat surveys that will enable the impact of access related policy interventions to be assessed. The survey was comprehensive in highlighting the prevalence and use of digital financial services (DFS).

Consumer Protection in Digital Credit Paper 2017 English (en)

view page
This resource appears in: ICT applications

Digitally delivered credit is quickly expanding in emerging markets. “Digital credit” refers to credit products—including digital payments products such as mobile money—that are delivered fully via digital channels, such as mobile phones and the internet. These business models are driven by strong customer demand, lower operating costs, and the greater reach of the instant, automated, and remote lending methodology. The convenience and speed of digital credit are well matched to urgent and unanticipated needs, such as a late-night emergency visit to the hospital or working capital for the quick-turnover, high-margin economic activities common for microenterprises. Yet the very attributes of digital credit—instant, automated, and remote— create consumer protection risks that are distinct from those of more traditional consumer and microenterprise credit models. This paper explores new approaches to address risks and problems in five areas:

  • Disclosure of loan terms and conditions;
  • Marketing approaches to promote responsible borrowing;
  • Appropriate and tailored products to meet the needs of specific consumer segments;
  • Repayment and collections;
  • Credit reporting and information sharing.
Consumer Protection in Digital Credit  -  English (en)

Impact of Agricultural Value Chains on Digital Liquidity Document 2016

view page
This resource appears in: ICT applications

This report looks at agricultural value chains and whether they are a potential vehicle for increasing digital liquidity:

  • How much of the population do they reach?
  • How important are agriculture payments to the lives of the poor?
  • Would value chain eMoney tend to stay in electronic form?
Author Jackson, T. H., Weinberg, A.
Publisher International Telecommunication Union (ITU)
Number of Pages 28 pp.
Primary Language English (en)
Region / Country Global
Keywords Agriculture, digital finance, Ict For Development, Ict
Related Resources

Search Library Resources