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Z O O N 1A9
ABOUT ZOONA:
Driving through Zambia, you can't help but marvel at the ubiquity of the lime green boxes that have come
to symbolize one of Africa’s most successful ventures: Zoona. Launched in 2009 by brothers Brad and
Brett Magrath, Zoona is the real deal – quite literally, as Zoona means “it’s real” in Nyanja, one of the
languages spoken in Zambia. “Zoona!” is what the cotton farmers expressed after the founders explained
the service and they overcame their initial scepticism. “Zoona!” - it is real, and it is making a profound
impact on people’s lives.
The drastic rise in mobile phone ownership in
Zambia (Fig. 1) has been accompanied by the
emergence of a plethora of digital financial service
providers. Zoona stands out amongst them - its
relentless focus on customer-centric design and
data driven product development explains how
Zoona has gone from a fledgling start-up burning
through USD 250,000 of cash a month, to raising
USD 19 million from private investors between
2012 and 2016. Today, Zoona has become a
market leader, processing more than USD 60
million in transactions each month with an active
user base of 2 million people. Figure 1: Cellular phone subscription in Zambia (per 100 people)
18 ZOONA
Zoona’s service is simple: Customers bring their cash to the booths - conveniently placed at busy
intersections, outside post offices or markets - from where the Zoona agent transfers the money
to the recipient who collects it on their phone or from the nearest Zoona booth. In addition to
transfers to people, customers can also make bill payments or top-up airtime (Fig. 2). All the
sender has to do is present a valid ID and a phone number for the recipient.
FUTURE OF ZOONA
In the early days of Zoona - struggling with day-to-day operational challenges and haemorrhaging cash - the two
founder brothers had a heart-to-heart during a family vacation in the Drakensberg. It was a make-it-or-break-it point.
That night, they committed to take the tough decisions to make their business work - to be “bold and brave” in their
words.
One might wonder whether Zoona will soon find itself at a similar crossroads. After 10 years as a CEO, Mike Quinn
left the company in April 2019. At the same time, Zoona has fallen short of its initial target to expand into 10 African
countries by 2020. Whilst it has established a presence in Malawi and Mozambique, it faces stiff competition from
local incumbents.
The customer centric focus of Zoona might well have allowed the company to expand rapidly in Zambia in the early
days of 2009. But one most also wonder whether the initial absence of competition might have facilitated its ascent.
Powered by an even greater wealth of customer behavioural data, MNOs such as Airtel and MTN are quickly
catching up. It seems Zoona’s secret sauce is not so secret after all.