NaTCA’s Fines on Africell and Orange Over Mobile Money Spark Regulatory Debate

Recently, both mainstream and social media reported that the National Telecommunications Communications Authority (NaTCA) has imposed hefty fines of Le500 million (old Leones) on Sierra Leone’s two largest mobile network operators, Africell and Orange. The fines, issued on Wednesday, October 2, 2024, stem from allegations that both companies have been operating their mobile money services without proper licensing, in violation of the National Communications Authority Act 2022.

NaTCA claims that the operators have deliberately contravened the 2022 Act and warned in a letter addressed to the companies that further non-compliance could result in their institutions being deemed illegal. The letter stated: “Failure to comply with the National Communications Act 2022 would leave the Authority with no alternative but to conclude that your institutions are illegal entities, and they would be treated as such.”

At the heart of this controversy is the question of whether Africell and Orange’s mobile money services fall under NaTCA’s regulatory authority as defined in the Communications Act of 2022. NaTCA maintains that it is mandated to regulate all forms of electronic communication services, including mobile money, to ensure compliance with national standards and consumer protection laws.

However, after a thorough investigation and review of the Act, the situation appears more complex than initially reported. Key provisions of the National Communications Act 2022 raise questions about whether mobile money services, which rely on telecommunications infrastructure but primarily involve financial transactions, are within NaTCA’s scope of authority.

Sources have revealed that NaTCA and the Bank of Sierra Leone had previously engaged in discussions to jointly regulate mobile money services, given the overlap between telecommunications and financial services. The expectation was for a joint regulatory framework to be developed, addressing both sectors’ concerns.

NaTCA’s primary mandate, according to the Communications Act 2022, is to establish technical and performance standards for electronic communications equipment and services. The question remains whether this mandate extends to financial services like mobile money. For example, Orange Mobile Finance, which facilitates financial transactions rather than telecommunications services, may fall outside NaTCA’s regulatory domain.

Both Africell and Orange have maintained that they are in compliance with the financial regulations overseen by the Bank of Sierra Leone. They argue that their mobile money services do not fall under NaTCA’s current licensing framework.

The fines have raised concerns that mobile money operators may be penalized unfairly. What is clear is that a more coordinated approach between NaTCA and the Bank of Sierra Leone is needed to resolve the regulatory ambiguity. A proposed joint regulation could provide the necessary clarity and framework to avoid further conflict and ensure that mobile money services remain compliant with both legal and technical standards.

As mobile money services continue to play a crucial role in the country’s financial inclusion efforts, resolving this dispute is essential. The hope is that ongoing dialogue between NaTCA, the Bank of Sierra Leone, and the mobile operators will lead to a solution that promotes both compliance and the continued growth of this vital sector.