Vivo Energy, the exclusive licensee in Africa for Dutch oil giant Shell, has reached an agreement with leading African telecos, MTN and Airtel, aimed at expanding the reach of the companies on the continent through the provision of improved services to customers.

The scope of agreement with MTN includes the sale of airtime through the MTN mobile money platform at all Shell’s service stations as well as provision of float to the mobile money agents by the service stations.

Also, the stations will serve as cash-in and cash-out points for users of the mobile service, making it an acceptable mode of payment for products and services rendered by the stations.

“We are confident that, together with MTN, we shall remain at the forefront and offer our customers the opportunity to use a modem money transfer and payment tool on our service stations,” Vivo Energy’s Executive Vice President, Supply & Marketing, David Mureithi said.

With Vivo Energy’s 1,430 stations across the continent and MTN’s subscriber base of 207.8 million, the alliance provides both firms the opportunities to leverage on each other, bringing high returns while providing improved customer service.

“Partnerships like the one we have established with Vivo Energy present an opportunity for MTN to make the lives of millions of MTN Mobile Money customers a whole lot brighter, by adding more convenient, easily accessible mobile money merchants to our already extensive footprint,” Pieter Verkade, MTN‎ Group Chief Commercial Officer said.

The deal with MTN will span five countries where both firms currently operate, which include Ghana, Uganda, Guinea Conakry, Botswana and Ivory Coast.

However, Vivo Energy’s strategy to remain at the forefront of innovative solutions to customers birthed an initial partnership with Airtel Money earlier this month, which the energy company offered to provide the same service it is currently offering MTN Mobile Money.

Speaking on the deal with Airtel, Mureithi said: “Through this alliance with Airtel, we want to expand the range of services we offer to our customers and also allow them to pay in a simple and easy way on our retail sites.”

According to Chidi Okpala, Director and Head of Africa, Airtel Money, the deal would bring Airtel Money closer to its customers since Shell service stations were easily accessible, thus “providing additional outlets where (customers) can deposit and withdraw cash, as well as make purchases for fuel and other services at Shell service stations with Airtel Money.”

Operation between Vivo Energy and Airtel Money is expected to commence sometime before the second half of the year in Madagascar, Burkina Faso, Kenya, Ghana and Uganda.

However, since Vivo Energy would be utilising its service stations to drive these partnerships, there might be a conflict of interests, especially in countries like Ghana and Uganda where MTN and Airtel compete for subsribers and the service would operate simultaneously.

Elsewhere on Ventures

Triangle arrow