“The M-Akiba bond is the world’s first mobile-only bond, issued by the government of Kenya.
Kenya first announced plans for the bond, named after the Kiswahili word akiba or “savings,” in late 2015, as a way to give ordinary Kenyans access to the country’s capital markets.
Investors can buy the bond in increments as small as 3,000 shillings (about $30), compared to the minimum of 50,000 shillings individuals had to spend previously to buy government bonds.
The bond will be offered on M-Pesa, Africa’s biggest mobile money network that got its start in Kenya, as well as other mobile money networks. Investors can buy and sell the bonds on the Nairobi Securities Exchange via their phones. Coupon payments will be paid directly to their phones. Like M-Pesa, both smart phones and basic features phones can be used.”
In my opinion, this type of innovation is exactly what Africa needs to break the stubborn obstacles that hold back financial inclusion on the continent.
Nothing stops other African countries from following Kenya’s lead. Going by the success of M-Pesa, the mobile phone will continue to yield more transformations on the African continent.
Let’s go, Africa!
Read the full article at Quartz Africa
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