Orange launches N’stakolle

Mobile giant, Orange Botswana this week officially launched its N’stakolle micro-loan service, ending weeks of speculation over the nature of the product. In a notice, Orange said the product was being offered in partnership with Access Bank Botswana, a key distinction that is being analysed by the Non-Bank Financial Institutions Regulatory Authority (NBFIRA). Last week, the Authority had said it was investigating whether Orange had followed the regulations in introducing the N’stakolle consumer lending product. NBFIRA officials said one way Orange could introduce the loan was through “white labelling” which means issuing loans either through a regulated bank or regulated micro-lender. In its notice about the launch, Orange said it would offer “instant loans” amounting to P1,200 to its Orange Money customers with loan tenures of up to 30 days and interest rates of between 7.5 percent and 12.5%. The mobile company said the product was developed to “better serve customers’ needs and provide a convenient, reliable, affordable and safe micro-loan service,” accessible through the mobile phone. The N’stakolle loan has reportedly unsettled some members of the traditional cooperatives savings sector, known more commonly as metshelo. Members of the sector say Orange’s new product directly competes with those metshelo that are built around loans, by offering a 50% discount on the prevailing informal sector interest rates.