On the back of a steady decline in monthly active users, mobile social network Mxit announced on Friday that it will donate all its IP and tech assets to independent Public Benefit Organisation, the Reach Trust. The company made headlines after also reaffirming a move out of India and Nigeria markets.

"In 2014, Mxit tested the efficacy of through-the-line marketing efforts in India and Nigeria. Although the brand could quickly acquire users, the long-term growth prospects in these highly competitive markets were carefully reviewed at the end of 2014, and compared to the on-going investment it would require to retain users. In the beginning of 2015, the Group shifted its focus back to Southern Africa, and marketing activities in both of these markets ended. Most of the team that was employed by Mxit India for the marketing pilot was absorbed by GluePlus, which is not formally related to Mxit in any way," according to a statement issued by the company.

Mxit's statement continued "after three years of extensive commercial innovation and through-the-line marketing efforts in key markets such as South Africa, Nigeria and India, the shareholders believe that essential Mxit assets can be used more meaningfully for social good in Southern Africa."

Outgoing CEO Francois Swart is quoted as saying, "Whilst Mxit overall has seen a decline in activity and engagement over the past 18 months, the use of services offered by The Reach Trust on Mxit has been stable and in many cases show an upward trend."

The Reach Trust was established in 2012 "to inspire and improve lives" through the development of innovative and cost-effective mobile solutions.

Reach will use key Mxit features such as the messaging service and the app publishing framework to sustain engagement with users, including more than 500 000 learners who continue to access educational apps on the platform every month, according to the company.

“With the power of mobile technology in the hands of almost everyone in the country, we believe that it is critical to extend and expand the access to mobile content and services to accelerate social and economic change,” says Andrew Rudge, CEO of The Reach Trust.

According to World Wide Worx and Fuseware research Mxit had 4.9million active users in South Africa in August 2014.