Tigo Pesa customers share $2.3m profit in Tanzania

Users of Tigo Pesa, the mobile money platform owned by leading digital lifestyle company, Tigo Tanzania have been paid a total of $2.3 million as profit share.

This is the eighth 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.

A statement issued by the telco shows a quarterly profit share growth of 18 percent with payment to customers rising from $2 million for the quarter ending December 2015 to $2.3 million that the company is paying out for the quarter ending March 2016.

“We are really excited to be announcing this increased profit share distribution for the eighth successive time. This underlines our commitment to provide financial access to our customers and the country at large through our Tigo Pesa services,”says Ruan Swanepoel  Tigo Head of Mobile Financial Services.

Cumulatively, Tigo Pesa users have earned $18.5 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, explains Ruan.

The profit is shared among individual customers, retail agents and other Tigo business partners based on the e-value they stored in their Tigo Pesa wallets.

Ruan attributes the increased profitability to Tigo’s improved market condition and steady growth in the number of Tigo Pesa users, in particular from the merchant segment. Tigo Pesa currently has the largest network of over 50,000 merchants in Tanzania.

Meanwhile, Tigo has become the second largest player in the Tanzanian telecom market with the highest growth rate, according to recent statistics by the Tanzania Communications Regulatory Authority (TCRA).

A report by TCRA Tigo showed that Tigo has recorded the fastest growth rate among other telecoms in the country. Out of the 6.7 million total industry growth during the period, Tigo grew by 2.5 million which is equivalent to 37 percent.

According to the country’s communications regulatory authority, Tigo increased its traffic by 2.3 billion minutes while its total market grew by 2.8 billion, compared to Vodacom which dropped by 1.5 billion while Airtel grew by 1.5 billion. Tigo’s meteoric rise gave it 28 percent market share with its subscriber base rising to 11,115,991, effectively beating Airtel to the second position.

Tigo General Manager, Diego Gutierrez attributed the company’s success to affordability, innovation, digital financial initiatives, mammoth investments, and the launch of 4G LTE, the country’s fastest mobile internet connection and extensive network expansion.