The Tanzania Chamber of Commerce, cautions BoT on phone money transactions

Mergers, Acquisitions and Financial Results

The Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA) in Mbeya region has cautioned the Bank of Tanzania (BoT) to device a system that could guard people’s money transacted through the mobile phones that has of late conquered a big part of the country.

Speaking at the Nane Nane exhibition being held at the John Mwakangale grounds here, the TCCIA chairman in the region, Julius Kaijage, said many Tanzanians use the services today more than other forms of financial transaction systems.

He said, what many members of the public are not aware of is that they are likely to incur loss should any of the firms encounter big financial crisis or challenges.

“Basically financial services through mobile phones are very good and help many people move their businesses and social activities very quickly.But my worry is when those companies experiences financial downturn. How would the customers have their money back,”? he asked.

He said the major challenge ahead for BoT is to look at how it can regulate and put a clear system that would ensure that people’s money remain safe even with the collapse of the companies.

“The central bank should guarantee those mobile phone companies so that the money that goes into circulation is kept in safe places in case of bankruptcy on the part of mobile phone,” he insisted.

In recent years, a good number of mobile phone firms have established financial services which have attracted many people even in rural areas transcending the boundaries which conventional banks have failed to go before.

In Tanzania ths services are currently being dispensed by Vodacom (Mpesa), Tigo (Tigo Pesa) and Zantel (Zpesa).

The technology has shown high efficiency and the users send or receive money with ease and at a relatively very short distance without necessarily walking to a conventional bank or post office.