Tigo Tanzania shares $2.1m in quarterly profit

Payment is generated from profit accruing in the Tigo Pesa Trust accounts
Mobile money, Profit shares, Tigo Tanzania shares $2.1m in quarterly profit

Share

Tanzanian telecom operator Tigo has made a quarterly payment of $ 2.1 million (Tshs 4.4 billion) to its 4.6 million Tigo Pesa users, the seventh time in a row that the company is distributing profit to its mobile financial services users.

Speaking at a press conference in Dar es Salaam last week, Obedi Laiser, head of finance and risk for mobile financial services, Tigo Tanzania said cumulatively, the company has paid its mobile financial services users a total of $16.5 million (Tshs 35.5 billion) quarterly payments since September 2014.

The payment is generated from profit accruing in the Tigo Pesa Trust accounts held with major commercial banks in Tanzania, Laiser said.

Tigo Tanzania became the first telecom company in the world in 2014 to share profit generated from its mobile money Trust Account in the form of a quarterly distribution to its customers.

The revenue share model is in line with the Tanzanian central bank (Bank of Tanzania-BOT) which allows the country’s mobile operators to increase e-money deposits and mobile money transactions through new loyalty incentives.

“This profit share is payable to all Tigo Pesa users including individual customers, retail agents and our business partners each based on the e-value they have stored in their Tigo Pesa wallets,” Laiser said.

Continues on next page

He added: “We are really excited to be announcing this profit share distribution for the seventh successive time. The payment underlines Tigo Tanzania’s commitment to provide financial access to our customers and to promote financial inclusion in the country through our Tigo Pesa services.”

According to the BOT, Tanzania has aims at attaining a 50% national financial inclusion of its population by 2016. The East African country has an estimated population of 45 million people.
In the past three years the company has launched over 500 new network sites with plans to double this investment by 2017 in terms of coverage and additional capacity networks for deeper penetration in rural areas. With over 10 million registered subscribers, Tigo directly and indirectly employs over 300,000 Tanzanians including an extended network of customer service representatives, mobile money merchants, sales agents and distributors.

Tigo is the biggest commercial brand of Millicom, an international company developing the digital lifestyle in 12 countries with commercial operations in Africa and Latin America and corporate offices in Europe and the USA.
 

REGISTER NOW | Webinar Event | Security you can bank on – Safeguarding the Middle East’s financial sector

Presented in partnership with security and network specialist Cybereason, the second in the three part webinar series will bring together a panel of experts to discuss how banks and financial institutions are evolving their service offering while simultaneously staying one step ahead of the cyber criminals who seek to bring their operations crashing to the ground.

Editor's Choice

Emerson expands analytics platform for industrial enterprise-level wireless infrastructure management
Plantweb Insight platform adds two new Pervasive Sensing applications that manage wireless networks more efficiently with a singular interface to the enterprise
Digitalisation seen as a competitive advantage by Middle East private businesses
Nearly 80 per cent of private business leaders acknowledge that digitalisation can impact business sustainability
Etisalat introduces Multi-Access Edge Computing architecture delivering best-in-class video streaming performance for 5G networks
MEC architecture achieves performance gains of as much as 90% in video streaming, validating how ultra-low-latency applications will be delivered over 4G and 5G networks

Most popular

Don't Miss a Story