Zambia has unveiled an innovative mobile overdraft service, Kwanisa Na MoMo, designed to empower underserved individuals and microbusinesses by providing instant access to credit through mobile phones.
The initiative, launched jointly by MTN Mobile Money Zambia and fintech infrastructure provider JUMO, seeks to bridge financial gaps for millions excluded from traditional banking systems.
Accessible on feature phones without requiring internet data, the service operates via a simple USSD code (*115#), allowing MTN Mobile Money users to complete transactions even when their account balances are insufficient. This convenience is expected to significantly reduce failed transactions, a common hurdle for cash-dependent users.
MTN Zambia Managing Director Komba Malukutila highlighted the scale of the opportunity, stating, “This service expands financial control for over 1.2 million existing MoMo loan users, positioning the platform as a comprehensive lending marketplace.” The mobile overdraft facility tailors loan offers using AI-driven behavioural analysis, which assesses users’ transaction histories to determine eligibility and dynamically adjust loan amounts based on repayment patterns.
The product directly targets Zambia’s vast microbusiness sector, which comprises 97% of the economy and often remains excluded from formal financial services due to limited or non-existent credit histories. Bradwin Roper, JUMO’s representative, described the solution as “fit-for-purpose,” leveraging eight years of experience deploying $8 billion in loans across Africa. He further emphasized JUMO’s commitment to ethical lending, underscored by a 92.2% rating from Cerise + SPTF, a leading ethical finance benchmark.
By combining mobile money penetration with instant credit access, Kwanisa Na MoMo aims to stimulate grassroots entrepreneurship and enhance financial inclusion in Zambia’s cash-reliant economy. This partnership signals a significant step forward in scaling accessible, responsible lending solutions for underserved populations.
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