|Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature.|
This summary covers an investment by the Sierra Investment Fund LLC and the ManoCap Soros Fund LLC in Splash Mobile Payments Ltd., a greenfield mobile payments and banking company in Sierra Leone. The investors have applied for a MIGA guarantee of $1.4 million for a period of up to 10 years against the risks of transfer restriction, expropriation, war and civil disturbance.
Building on the emergence of successful payment systems across Africa, Splash Mobile Payments Ltd. will allow customers to send money or make payments using their mobile phones. This can be done by SMS, online access through a mobile phone or by the use of Near Field Communication technology. Mobile-banking services allow customers to carry out additional banking activities using their mobile phone, for example making deposits, checking account balances, arranging credit facilities or establishing direct debits. This technology is expected to improve security for users, increase liquidity and reduce the cost of transferring funds which is currently high in the formal banking sector.
This project is category C under MIGA’s environmental review procedures, as it has minimal or no adverse social or environmental impact and minimal or no adverse risks.
MIGA’s proposed support for this investment is aligned with the World Bank Group’s Country Partnership Strategy for Sierra Leone, which is supporting improved access to finance. The project is also aligned with key agency priorities, which include encouraging investment in post-conflict and IDA-eligible countries. The proposed project would be underwritten through MIGA’s Small Investment Program.