Tigo Tanzania recently announced a quarterly interest payment of Tshs 5.82 billion (US $2.6 million) to all Tigo Pesa users, the eleventh time that the telecom is distributing to its mobile financial services users. This is the interest share distribution for the fourth quarter ended December 31, 2016.
Announcing the payment in Dar es Salaam today, Tigo Head of Mobile Financial Services, Ruan Swanepoel said that cumulatively, the telco has paid its mobile financial services users a total of Tshs 58.10 billion (US$ 26.3 million) in quarterly payments since the introduction of the interest distribution by Tigo in July 2014.
Swanepoel said that this year’s first quarterly interest distribution recorded a growth of 11%, as a result of the favorable rates received on the trust funds placed with various commercial banks in Tanzania.
“This interest is payable to individual customers, retail agents, super agents and other Tigo business partners who each receive payment based on the e-value they stored in their Tigo Pesa wallets,” Swanepoel explained.
“We are really excited to be announcing this increased interest distribution for the 11th successive time, bringing relief to millions of Tigo Pesa users, helping them to meet their various financial obligations. This underlines our commitment to provide financial access to our customers and the country at large through our Tigo Pesa services,” said Swanepoel.
He cited Tigo’s increased profitability, due to improved market conditions and steady growth in the number of Tigo Pesa users as the major drivers to the significant increase in interest share especially from the merchant segment. Tigo Pesa currently has the largest network of over 55,000 merchants enhancing transaction payments across the country.
As before, according to Swanepoel, the return to customers is calculated based on Tigo Pesa customers’ average daily balance stored in their mobile wallet adding that this profit share distribution scheme is in line with the Central Bank Circular issued in February 2014.
Tigo Pesa became the first mobile money service in the world in 2014 to distribute interest generated from its mobile money Trust Account in the form of a quarterly distribution to its customers.