Tanzania’s telecommunications company Tigo has announced that it will share $2.57 million (Tshs 5.6 billion) of its quarterly profits to the users of its mobile financial services product, Tigo Pesa.
The company began the initiative in July 2014 and this will be the ninth time in a row that it will be distributing its quarterly profits to customers.
Cumulatively,the telco has distributed a total of USD 21.2 Million (Tshs 46.2 billion) since the initiative was launched. This year’s second quarterly profit share grew by 8%, driven by the surge to favorable interest rates on the trust funds placed with various banks in Tanzania.
“We are really excited to be announcing this increased profit share distribution for the ninth successive time. This profit share is payable to individual customers, retail agents and other Tigo business partners who each receive payment based on the e-value they stored in their Tigo Pesa wallets. This underlines our commitment to provide financial access to our customers and the country at large through our Tigo Pesa services.” said Ruan Swanepoel, the head of Tigo’s mobile financial services.
In Tanzania, Tigo Pesa has the largest network of over 50,000 merchants who were the key drivers to the significant increase in profit share.