Having supported Moov in strengthening its distribution network, we’re now supporting CashZone (a distribution network aggregator) in its deployment of 500 rural agents in 15 communes in Benin to improve the distribution of digital financial services.

The 15 communes were identified by the MIX Market Finclusion Lab as areas with high economic potential with poor coverage for financial access. These target communes will host CashZone agents and improve digital financial service accessibility.

Thanks to the technical and financial support provided through MM4P, the CashZone project is currently deployed in 10 locations throughout the country, with 255 agents specifically recruited targeting women and youth agents.

The first agents we met are enthusiastic but are already highlighting the primary challenge to be addressed on this pilot project: the lack of investible capital.

Most agents start up with limited capital. Such is the case for Ketia, an unsuccessful high school student living in Banikoara, (in northern Benin) and who managed to get 15,000 CFA francs from her uncle as capital. “I find it difficult to meet the needs of my clientele as the demand for deposits and withdrawals is far greater than my working capital. Because of this I’ve had to limit myself to selling airtime credit,” she said. This is the same for Simon, a motor boat driver in the lake area of So-Ava, in southern Benin. He got involved in the “business” because “driving a boat doesn’t pay well.” Until he can increase his capital, he’s running his business on 25,000 CFA francs. “If I manage to increase my capital, I can earn more commission because there is strong demand here.” He has an average income of around 3,600 CFA francs ($7) per month, from capital of 20,000 CFA francs ($40).

Ketia and Simon share a similar story with other agents we met who all see mobile money as an income-generating activity. Whether it is a primary or supplementary activity, it enables part of the population in these areas to sustain themselves, even if the income they receive is low. It is also a way of building an identity within the community, and providing access for hundreds of people to financial services. It thus plays an important role within the community!

Despite these precarious times, customers in pilot areas acknowledge that the deployment of agents has given them easier access to financial services. They can carry out transactions without travelling long distances and without losing money in transportation costs. In these areas, every penny counts.

However, having enough capital to help agents make their business profitable is still an issue. For the moment, the most viable models involve agents who already have a business.

For example, Wachilatou is a hairdresser in Kouandé. With this primary activity of beauty salon, she was able to borrow 500,000 CFA francs from her family to get started. With her commission she has already repaid the loan and manages to help her husband with the daily expenses. She recognizes the high potential of the agent role, especially as she is one of the very few agents to provide this service in her neighborhood. Unfortunately, not everyone has the same opportunities as Wachilatou.

The remainder of the pilot will allow us to assess the impact of the lack of capital on agent success.

For more information son the project , download the factsheet