Tigo Tanzania has paid out a total of Tshs 5.48 billion (US $2.47 million) as profit share paid every quarter by the Tanzanian telco to its Tigo Pesa customers.
This is the twelfth time that Tigo is disbursing the quarterly payment to its mobile money users a practice the company became the first telecom in the world to introduce in July 2014.
The latest payout covers the quarter ended March 31, 2017.
Cumulatively, Tigo Pesa users have earned Tshs 63.58 billion (US $2.86 million)in profit share since the scheme started. The payment is profit accruing in the Tigo Pesa Trust accounts held with major commercial banks in the country, according to Tigo’s Head of Finance and Risk – Tigo Pesa, Christopher Kimaro.
The profit share recipients include individual customers, retail agents Super agents and other Tigo business partners who each receive payment based on the daily e-value they stored in their Tigo Pesa wallets.
“We are really excited to be announcing this profit share distribution for the twelfth successive time. This underlines our commitment to provide financial access to our customers and the country at large through our Tigo Pesa services,” Kimaro said.
He attributes the increased profitability to Tigo’s improved market condition and steady growth in the number of Tigo Pesa users. Tigo Pesa currently has the largest network of over 80,000 merchants all over the country.
“Tigo is a company that is still growing rapidly that as an incentive for Tigo brand loyalty decided in 2014 to be rewarding its customers through a profit share , while investing as much as possible into further growth”, he added.
As is the norm, the profit to customers is calculated based on Tigo Pesa customers’ average daily balance stored in their mobile wallet as the profit share distribution scheme is in line with the Central Bank Circular issued in February 2014.