By Bongiwe Dlamini

MBABANE:This September, the country’s newest mobile money operator,INSTACASH marked its second anniversary, making significant strides in challenging the entrenched dominance of traditional banks and telecom operators in Eswatini’s financial sector.

 In an interview with Kenya’s Financial Fortune, Managing Director Mandla ‘Cheeks’ Nxumalo shared insights on how the innovative platform has amassed over 200,000 users in a short span, capturing a noteworthy segment of the population. 

This success comes as INSTACASH competes against five banks-including three from South Africa-and two established mobile money players that have long influenced access to financial services in the region.

Nxumalo attributes the rapid adoption of INSTACASH to its strategic focus on targeting underserved demographics. 

“We identified a gap in the market, especially amidst a workforce where only 30 percent is formally employed,” he explained. 

This observation underscored the limitations of traditional banking in addressing the diverse needs of Eswatini’s citizens.

What sets INSTACASH apart is its independence from telecom operators, which enables it to offer seamless interoperability between networks such as MTN Eswatini and Eswatini Mobile. 

This capability will be further enhanced by the Central Bank of Eswatini’s upcoming National Payment Switch program, which promises to simplify wallet interoperability across various mobile money providers and banks. 

This flexibility positions INSTACASH as a formidable challenger in a sector previously dominated by telecom-driven money services.To effectively reach its audience, INSTACASH has prioritized access through basic GSM and 2G networks. 

This strategic move caters to the large segment of the population that lacks internet connectivity, particularly in Eswatini’s peri-urban and rural areas. 

By focusing on accessibility, INSTACASH has created a pathway for financial inclusion for individuals who have historically been excluded from conventional banking.

A recent report from the Central Bank of Eswatini highlighted the limited product diversity in the local fintech ecosystem, pointing out the absence of local actors and sustainable funding sources essential for developing the sector. 

“In summary, there’s a significant lack of alternative regulatory instruments and local market enablers to nurture a vibrant fintech ecosystem,” the report stated.

Yet, the emergence of INSTACASH has prompted necessary regulatory changes. Its unique position as a telco-agnostic entity has led Eswatini’s regulators to reevaluate the licensing and oversight of mobile money services, compelling telecom companies to clearly delineate their mobile money operations from their core telecommunications services. Nxumalo noted;

“Our entry into the market necessitated that telcos separate their financial services from telecom operations, which has contributed to a more equitable playing field.”

In just two years, INSTACASH has ascended to become the second-largest player in Eswatini’s mobile money landscape.

Given the country’s modest population, the market still holds ample opportunity for further growth. 

According to the Eswatini Fintech Landscape Report 2023, the nation has seen a remarkable rise in financial inclusion, with mobile money services pushing the figure to 87 percent-an impressive increase from just 44 percent in 2010.

Despite the progress, a large portion of the population continues to remain underserved by conventional banks, indicating vast potential for expansion in the fintech sector. 

As INSTACASH continues to challenge the status quo, it not only enhances accessibility to financial services but also paves the way for a more inclusive economic future for Eswatini. 

With a clear focus on empowering the unbanked and underbanked, INSTACASH is set to redefine the landscape of financial services in the country, promising a brighter financial future for emaSwati.