Tanzania's Tigo launches mobile money service - CNBC Africa

Tanzania's Tigo launches mobile money service

East Africa

by Elayne Wangalwa 0

Tanzania’s Tigo has launched the world's first mobile money service with automatic returns for its customers. PHOTO: Getty Images

Tigo, a subsidiary of Millicom an international telecommunications and media company, announced that it will offer its users a service Tigo Wekeza -Tigo Invest.

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“We launched Tigo Wekeza which basically is the first ever mobile money service that pays a return on customers’ balances. So basically people will see returns on the amounts of money they hold in their mobile wallet and they earn this returns on a quarterly basis at a competitive interest rate of about 7 to 9 per cent,” Diego Gutierrez, head of Tigo Tanzania told CNBC Africa.

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This new service will serve the over 3.5 million Tigo customers to benefit from quarterly payments grounded on the balance held in their account through its mobile money service, Tigo Pesa. Furthermore, Tigo customers will have the opportunity to recommend a non-profit beneficiary, in line with their personal cultural belief.

(READ MORE: Rwanda's Tigo launches tech business incubator)

“We want to think that we are the leading operator in regards to innovation in be everything that is related to mobile financial services. We are also growing very fast, we are a very healthy company, we are attracting subcribers, a significant amount of subscribers on a daily basis and we believe a move like this one is attractive,” Gutierrez said.

He added, “We believe a move like this one, a product like this one is so attractive that it allows people not only to transact but to also make a profit on their savings. We are really optimistic of what is coming ahead.”

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In August, the telecom together with Tanzania’s Bharti Airtel launched the world’s first cross-network money transfer service permitting customers to send money to users irrespective of which network they are registered on.

“We as a company have been advocating for the company to grow. Mobile money is something that has been growing in East Africa at a very accelerated rate. It is the leading part of the world in regards to mobile financial services and obviously we see a transition of the informal sector to the formal sector and we see the move slide into this side of the economy,” Gutierrez said.

Earlier in the year, the telecoms firm initiated a multi-currency mobile money transfer service for its subscribers both in Tanzania and Rwanda.

(READ MORE: Tigo launches world's first cross border mobile money transfer)

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