Tigo Tanzania pays Tigo Pesa customers US$2.3 million in quarterly profit share

Mergers, Acquisitions and Financial Results

Tigo Tanzania, the leading innovative telecommunication company in the country, has announced that Tigo Pesa customers have been paid about US$2.3 million as profit share paid every quarter.

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

Cumulatively, Tigo Pesa users have earned about US$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.

“The profit share represents 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,” said Ruan Swanepoel, Tigo Head of Mobile Financial Services.

He added, “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.”

The increased profitability to Tigo is as a result of 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

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.

Since July 2014, Tigo Tanzania has made it a practice to pay Tigo Pesa customers profit shares, and this payment makes it the eighth time the telco is disbursing the quarterly payment to its mobile money users.

Tigo Tanzania is distinguished as a fully-fledged digital lifestyle brand.

Offering a diverse product portfolio in voice, SMS, high-speed internet and mobile financial services, Tigo has pioneered innovations such as Facebook in Kiswahili, TigoPesa App for Android & iOS users, Tigo Music (Deezer) and East Africa’s first cross-border mobile money transfer with currency conversion.
Source: TechLoy 21 April 2016