Ecobank Tanzania unveils two digital payment systems

Dar es Salaam. Ecobank Tanzania has unveiled two digital payment solutions on Wednesday, September 20, 2017 aimed at easing retail payment.

Ecobank Tanzania Managing Director Mwanaiba Mzee addresses the media in Dar es Salaam after the launch of Masterpass and M-Visa for easier retail payment. She is flanked by the bank’s head of commercial Banking Respige Kimati (right) and head of personal banking Ndabu Lilian Swere

Using the platforms known as Masterpass and M-Visa which are available in the Ecobank Mobile Application, the bank says it will help to promote financial inclusion among Tanzanians.Speaking to journalists today,Ecobank's managing director Ms Mwanahiba Mzee said the new banking services will guarantee safety and easy financial transactions.

"This service can be used by any person be it a customer or non-customer, all one needs is a smartphone with Ecobank's application," she said.While demonstrating how the new services operate, Ecobank's manager for electronic channels Mr Filemon Tesha said the importance of using these new services include getting money faster and also increasing sales to all merchants.

He also said the digital services charge 0.5 per cent at the points of sales (POS) while the normal charges for money transactions range from 3 per cent to 5 per cent of the transaction made.He also said these services allow easy access for a person to follow up on their accounts as one can monitor the money transactions easily and it doesn't need physical contact with banks.The head of personal and domestic banking Ms Ndabu Swere added saying Ecobank's aim is to strengthen services and simplify transactions to its customers

Source: Citizentz

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Fortumo expands into Algeria, Ghana and Tanzania

The mobile payments company Fortumo announced today that it has expanding its carrier billing services to 3 new African markets. More than 79 million mobile phone owners in Algeria, Ghana and Tanzania can now make payments for digital services.

“Africa’s digital ecosystem is quickly growing and we are seeing strong interest from international merchants who want to expand their activities there. While each day a large amount of new smartphone owners are coming online, collecting payments from these users has so far been a challenge. Our expansion in Africa gives locals better access to digital mobile services such as games, music, and video while helping merchants generate additional revenue from the region,” said Gerri Kodres, Chief Business Officer at Fortumo.

Fortumo services app stores including Google Play, digital media providers including Spotify, Sony, HOOQ, Gaana and gaming companies like EA Mobile, Gameloft and Kinguin with carrier billing, local market insights and facilitates relationships with mobile operators.

All three markets where Fortumo has launched have extremely low credit card penetration: Algeria at 6%, Ghana at 0.9% and Tanzania at 0.7%. This means while people can access online content, most of them are unable to make payments for paid features of these services.

Carrier billing solves this problem by allowing any mobile owner to make payments conveniently through their carrier and either deduct payments from their airtime balance or charge them to their monthly phone bill. Additional information on Africa’s digital ecosystem can be found from Fortumo’s recent market report.

In the Middle Eastern and African region, carrier billing through Fortumo is now available to more than 600 million people in 24 countries. Globally, over 3.5 billion people in 97 countries can make payments using their mobile phone with merchants who have integrated Fortumo.

Source: itnewsafrica

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Why Is East Africa A Global Leader In Mobile Remittances?

East Africa has established itself as a global leader in mobile remittances, and TerraPay is the latest mobile payments platform to enter the crowded space with its launch in Tanzania.

The global company has obtained regulatory approval to launch international money transfer services to mobile wallets in Tanzania.

There are good reasons why companies are flocking to the region. There are huge opportunities in Africa’s mobile remittance segment due to a large number of people living and working abroad who send money home for investment and family support.

“There is also the opportunity created by intra-Africa businesses that require money transfer from one African country to another,” says Danson Njue, an analyst at Ovum. “The continent has a relatively high mobile penetration rate and a developed mobile money service platform which supports the growth of the mobile remittance sector.”

Experts say Tanzania, Zambia and Zimbabwe are challenging Kenyan operators for dominance of the sector. More and more players are entering the mobile remittances space, with Tigo launching an international remittance service and South African company Mama Money expanding to Tanzania earlier this year, IT Web Africa reported:

There is also interoperability between customers of MTN Mobile Money and Vodacom’s M-Pesa, with the arrival of TerraPay, which is part of the Mahindra Comviva group and provides interoperability engines – a further development.

The regulatory approval means Tanzania is now part of the TerraPay global network, which will allow partners from across the world to send money to mobile wallets in the country. Tanzanian diaspora in the U.K., France, Italy, Canada, U.S., South Africa and elsewhere can send remittances directly to Vodacom M-Pesa, Tigo Pesa, Airtel Money and Zantel Ezy Pesa Mobile Money accounts by visiting a participating TerraPay store.

In 2015, the World Bank reported remittances to Africa reached US$35 billion, excluding the amount transferred through informal channels. Mobile methods of sending money are vital due to the high cost of sending remittances in Africa via formal channels — between 8 percent and 20 percent of each transaction.

Since Kenya’s launch of M-Pesa a decade ago, East Africa has set itself up as a leader in mobile money. Aside from mobile money operators, global firms like WorldRemit and TerraPay see the region as a major base.

WorldRemit tracks the development of the sector back to the launch of M-Pesa. Recent figures released by the money transfer company show that the Kenyan diaspora is the biggest sender of digital remittances to mobile accounts.

Transfers to mobile money accounts make up 93 percent of WorldRemit’s transactions to Kenya, proving that Kenyans continue to be early adopters of innovative technology, even when abroad.

In January 2017 alone, WorldRemit customers transferred more than US$140 million to Kenya, while Kenyan internal remittances reached a record US$161 million in November 2016, making remittances one of the nation’s top earners.

But it is not just Kenya. East African countries including Tanzania, Uganda and Rwanda are also leaders in this space and have competitive markets.

Lehlohonolo Mokenela, an industry analyst at Frost & Sullivan, says East Africa and South Asia are reporting high growth in the volume of mobile money-based remittances.

“The affinity for mobile wallets in East African markets such as Kenya and Tanzania is expected to enable the growth of international remittances in the region, Mokenela said. “Service providers such as TerraPay are already looking to enable the development of this market in different parts of the continent.”

Making different mobile transfer services interoperable in different countries is a vital next step for the development of the market. Again, East Africa is leading in this, with Tanzania in particular making major steps forward, but there is more to be done.

“Interoperability is expected to overcome challenges to scale and facilitate micro-transfers across borders, a common theme for Africa’s low-income population,” Mokenela said. “The challenge for the market however, lies in the navigating the regulatory hurdles from one country to the next.”

Njue said there is evidence of increased adoption of mobile money interoperability by service providers to support cross-border and cross-network transfers and grow the sector.

“The need for interoperability is to support mobile remittances and also grow service usage among users. In addition to increasing mobile money usage, interoperability has the potential to unlock the intra-Africa mobile remittance sector which has not had much focus in the past and which holds the key to promoting cross-border trade,” he said.

He said he expected to see some consolidation in the market given how many different companies have entered the space.

“In my opinion, market consolidations may be inevitable in some markets where we have so many operators. However, partnerships will feature most as service providers seek to tap into the opportunities in the sector,” said Njue

Source:afkinsider

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HALOTEL SIGNS PARTNERSHIP AGREEMENT WITH NMB ON MONEY TRANSFER SERVICES

Halotel has today partnered with NMB to allow five Million Halotel and NMB customers enjoy cash deposit and withdraw services from HaloPesa.

This well designed integration will enable all HaloPesa customers to send money from their respective HaloPesa wallet to any NMB account at the comfort of their fingertips anytime and anywhere. This service also enables NMB customers by using NMB mobile to send money from their respective account to any HaloPesa wallet and access the cash at HaloPesa agent.

Speaking in Dar es Salaam while launching the new partnership, Halotel Deputy Managing Director, Le Van Dai, noted that the partnership is a big step for Halotel Tanzania, as it will enable Millions of Tanzanians to access banking transactions through HaloPesa.

Le Van Dai said Halotel is extending its HaloPesa agent network to NMB to make easy different banking transaction. ''and the target for this service is customers in remote areas and those who have a limited time to visit NMB branches to access banking services, but they can now do that with HaloPesa,” said Le Van Dai, insisting that teachers, fishermen, business people and farmers, most of which do not have time to visit the NMB branches due to busy daily schedules, and by so doing allowing NMB customers to deposit money conveniently into their bank account by a simple and easy to procedure  to follow the process of transferring money directly from HaloPesa wallet to NMB account’’

‘’And at the same time we are bringing NMB customers closer to their bank account by enabling withdrawals and deposit from the bank directly into the HaloPesa wallets everywhere across the country”

He added that, ''Halotel is now accessible to 95% of the country's population, with more than 30,000 HaloPesa agents. we believe this partnership will bring both NMB and HaloPesa services closer to the people. This service is essential to both Halotel and NMB customers, most of whom have not been able to access mobile banking services.

The NMB's Acting Chief of Retail Banking – Abdulmajid Nsekela said “Through this strong and long term partnership, NMB will be able to extend its distribution channels and in turn contribute significantly in improving customer’s lives and economy in urban and remote areas of the country”.

“The introduction of this service linked to NMB mobile will enable more than 2,000,000 NMB customers registered to NMB mobile to deposit money from HaloPesa to NMB account and also send money to other HaloPesa recipients from their NMB accounts at a very affordable rate. Said Nsekela adding that

“All NMB customers who are registered to NMB mobile will not need to visit NMB branches to make deposits to their accounts or transfer money to their business partners, friends and families. Introduction of this service enables any NMB mobile customer to send money to any HaloPesa wallet,” He further explained that,

“This enables teachers, police, nurses and all salaried workers who are passing their salaries through NMB account to be able to access their salaries without a need of visiting NMB branch. They can now simply send money from NMB account to HaloPesa wallet and withdraw cash at any HaloPesa Agent. The integration also enables customers to deposit cash to any NMB account by a simple transfer from HaloPesa wallet to any NMB account,” Nsekela concluded. 

The Introduction of this service will create convenience to all Tanzanian but mostly allowing the unbanked and under banked communities to access financial services close to them. NMB continues its commitment to drive financial inclusion and promote digital banking through innovation.  

Source: NMB

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Mastercard and Unilever Join Forces to Empower Small and Micro Businesses in Emerging Markets

At Mobile World Congress, Mastercard and Unilever today announced a strategic partnership to collaborate on a range of joint initiatives aimed at empowering small and micro businesses in emerging markets. By combining their expertise and reach, the companies intend to unlock economic growth and further advance specific Sustainable Development Goals such as poverty reduction and sustainable cities and communities.

According to the World Bank, there are somewhere between 365 and 445 million micro-, small and medium enterprises in the developing world, representing the economic backbone of many local communities. Yet, the true potential for these businesses remains untapped. Some of the biggest barriers for their further growth include limited market information, poor access to money, and a lack of financial management skills.

Matching Unilever distribution network with digital payments from Mastercard

By matching up Unilever’s network of distributors in developing countries with digital payment and acceptance solutions from Mastercard, technology resources will be activated to drive inclusive growth at greater scale.

As a first step, Mastercard and Unilever will explore ways to enable better access to formal financial tools for smaller retail outlets while also building entrepreneurship capacity, particularly for women and girls. Additional focus areas may include joint efforts to increase the usage of electronic payments across both wholesale and retail locations.

“Too many small merchants and micro entrepreneurs are stuck, like their customers, in a cash economy that doesn’t work for them,” said Ajay Banga, president and CEO, Mastercard. “With Unilever, we can bring a unique combination of technology and know-how to help these shop owners build a better future and serve their customers who are themselves on a path towards financial inclusion.”

Paul Polman, Chief Executive, Unilever added: “Strategic partnerships such as this are critical to helping us improve our business and positively impact the lives of 5.5 million people by 2020. By working together, we can have a much greater impact in emerging markets, empowering small scale enterprises and bringing about the transformative change necessary to meet the aims of the Sustainable Development Goals and our business.” 

During the World Economic Forum’s Annual Meeting in Davos, Her Majesty Queen Maxima of the Netherlands, UN Secretary-General’s Special Advocate for Inclusive Finance for Development (center) witnessed Ajay Banga, president and CEO of Mastercard (left), and Paul Polman, Chief Executive of Unilever (right), signing a strategic partnership designed to advance financial inclusion efforts by empowering small and micro businesses in emerging markets.

First pilot project in Kenya

In Kenya, the companies are jointly designing a program to enable sustainable growth of small retail entrepreneurs. By digitizing the processes of buying supplies and selling goods small vendors will gain access to low-interest credit. This will empower them to better answer shopper demand and grow their business while upskilling themselves through basic insight tools.

Source:mastercard

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MTN Uganda, CBA to provide virtual loans on mobile phones

Telecoms company MTN Uganda and the Commercial Bank of Africa have launched a virtual banking platform designed as a credit facility for the unbanked population, and those lacking collateral and credit history, who are locked out of the loans market.

The service requires MTN Mobile Money users to open a mobile bank account on MoKash, into which they can deposit as little as Ush50 ($0.015) in savings, and borrow up to Ush1,000,000 ($293) repayable at a rate of 9 per cent.

In the absence of proof of creditworthiness of the virtual customers, MTN says it will rely on other factors like the consistency of a customer’s usage of services like data and utility payment services to decide the loan amount to give.

The micro loan offer is a result of advancements in technology that have seen mobile money revolutionise the movement of money and the payment systems in the region.    

MTN hopes to replicate the success Safaricom has had in Kenya, after it partnered with CBA to launch a similar service, M-Shwari, in November 2012. A rollout to Tanzania was made the same year, where some 5 million customers are currently subscribed to the service.

By March this year, CBA had disbursed Ksh10 billion ($100 million) in loans and collected Ksh8.1 billion ($81 million) in savings from 3.9 million customers.

In Uganda, MoKash is expected to increase financial inclusion for people in rural areas.

According to Prof Augustus Nuwagaba, an economist and lecturer at Makerere University, 68 per cent of Ugandans are not monetised, that is, they do not touch money. Only 8.3 per cent of the population interacts with commercial banks.

In Rwanda, 28.2 per cent of the population interacts with banks.

Movement of money

Uganda is considered to have the highest movement of money in the region, but much of this is in the rural areas through traditional and informal methods of saving like purchase of land and livestock.

“Ugandans have a lot of money that ought to be saved. However, they do not have the incentive to save, and so domestic absorption will be slow,” said Prof Nuwagaba.

There is a need for telecoms companies to expand their networks to distant customers for the delivery of their products. Handsets also need to be made available to potential customers in rural areas, together with financial literacy training in the benefits, security, accessibility and relevance of the services.

Erick Muriuki, the general manager for new business at CBA, said that for a successful cashless economy to be realised, there is a need to digitalise the money velocity in an economy.  

This has to start with the reduction of costs incurred when making payments for utilities using digital means.

Source: theeastafrican

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Qatar Airways takes off with M-Pesa

Qatar Airways, the national airline of the State of Qatar, has entered into a strategic partnership with one of the world's leading mobile money service providers, Vodacom, to launch a service that enables customers to pay for airfare with the M-Pesa service.

Travellers can book flights either online or at travel agents and use M-Pesa as a payment option, according to a press release.

"We are proud to be associated with Qatar Airways, one of the world's leading airlines," Vodacom Tanzania's Acting Managing Director Nina Pendaeli Eshun said in a statement. "Our goal is to remain relevant and responsive to market needs at all times. M-Pesa is about reach, access and convenience. That is why Vodacom customers travelling on Qatar airways can now purchase their tickets anytime and anywhere at the mere click of a button."

In order to pay, customers  go to the M-Pesa pay bill option, enter Qatar Airways' business number and insert their booking reference number and the amount quoted at time of the booking. Upon receipt of payment, the customer will receive an SMS confirmation and the e-ticket via email. The ticket may also be collected at Qatar Airways reservations or their airport office, according to the announcment.

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MoneyGram, Vodacom partner on mobile money service in Tanzania

MoneyGram and Vodacom have announced a partnership that enables Vodacom subscribers in Tanzania to receive fund transfers directly into their M-Pesa accounts through MoneyGram's money transfer services.

M-Pesa subscribers in Tanzania can receive funds from MoneyGram into their mobile accounts from customers in more than 120 countries at any time, subject to system availability, according to a press release.

"MoneyGram continues to grow throughout Africa as a result of forming strategic relationships with mobile network operators, banks, post offices and retailers, to bring added convenience to our customers," Jacques Voogt, chief officer of mobile commerce at Vodacom Tanzania, said in a statement. "Presently, MoneyGram operates in more than 200 countries with a network of more than 350,000 locations globally of which 25,000 are in Africa."

Source:mobilepaymentstoday

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"Use enterprise SMS to deliver important notifications, improve security, increase the impact of your brand and add new revenue streams"

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Source:mobilekwetu

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Equity Bank has finally launched the thin SIM that provides a mobile payment, mobile banking and telecom services to its customers

Equity Bank Group has finally launched its thin SIM card to offer voice, SMS, data and mobile-to-bank money transfer services

Transfer of money within Equity Bank will be free and will only attract a fee while transferring from Equity Bank account to other banks.

Equity Group CEO James Mwangi says voice communications will Sh4 across all networks and one shilling for SMS, while mobile money transfer services will be free.

“The free money transfer services is like Internet banking services. What we are saying is why should the low income people be paying while the rich don’t pay so that when you transfer money from your account to your mothers account there will be no charge,” Mwangi said during the launch on Monday.

“With Equitel you will be able to send money to any telecom, bank account or mobile phone in the country,” Mwangi added.

Equitel is operating under Equity bank’s subsidiary Mobile Virtual Network Operator (MVNO) with infrastructure support provided by Airtel.

A new thin SIM card will go for Sh600 for new customers with no accounts at Equity Bank and who may be required to open accounts with the bank to enjoy the banking services. However the other normal cards will be given for free.

The thin SIM will start with the prefix of 0764 after the bank hit one million users under the 0763 prefix during the pilot project which was on the normal SIM cards.

READ: Government backs thin SIM technology

In partnership with switches in the market which include Kenswitch, Paynet and Kenya Bankers Association (KBA) customers can instantly send up to Sh1 million to all banks for Sh200 all days of the week.

“With the use of the switches that exist in the country, you can now transfer money from one bank to another even on a Sunday. Transfers of money have always been restricted to during the morning hours when clearing house is open. But now we have bypassed clearing because of this interconnection,” Mwangi explained.

The launch of the thin SIM comes after a long struggle which went up to the courts after complaints that use of the cards in the market was not safe.

Safaricom had raise concerns that the use of the thin SIM by placing it on top of customers’ existing SIM cards would interfere with privacy.

However Equity Bank won the battle after being cleared by the High Court in May this year.

Source:capitalfm

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Sending money to Kenya ... M-Pesa it!

Over 7 million M-Pesa customers in Tanzania and over 18 million Safaricom customers in Kenya can now send and receive money from each other. This revolutionary service allows for mobile wallet to wallet transfers between the two largest telecom operators in East Africa. Now, customers can transfer funds across the border at the same rate as sending money locally.

Speaking in Dar es Salaam, Vodacom Tanzania’s Managing Director said available statistics indicate that over TZS 200 billion is sent from Tanzania to Kenya annually, while the latter sends over 26 billion to Tanzania. "Statistics from the World Bank, (2013) indicate that Tanzania sent approximately TZS 200 billion to Kenya through formal channels. Estimates would indicate that more than twice that amount was transacted via informal channels including bus drivers, friends and family" stated Meza.

 

"We have looked into the hurdles that our customers need to overcome in order to send and receive money across to our neighbors in Kenya and have come up with a safe, secure and convenient way to do so. From today one doesn’t need to send money by  suka wa basi au konda or incur hefty charges to transfer school fees, buy goods or settle business payments,  he or she can do so directly from their M-Pesa wallet and… from the comfort of their home, anytime the need arises , "  says Meza.

For his part, Safaricom's Chief Operating Officer Bob Collymore said "We believe that we have launched a new chapter in the continuing growth story of M-Pesa Enabling transactions between Kenya and Tanzania will make it ever-more convenient for businesses and individuals to transact across borders and unleash the transformative power of a first of its kind cross-border payment system."

"Vodacom customers will from today be able to send and receive money to and from Kenya through the same process that they are already used to. Their experience is the same as that of sending money nationally, the only difference is that a customer can now choose option 3 - send money to M-Pesa Kenya- and enter the mobile number beginning with the +254…prefix,” added Meza. “Even before the money is sent, the customer will be shown the Kenyan Shillings equivalent value of the money that the customer in Kenya will receive. The currency conversion will happen immediately and the money will be available instantly for withdrawal or making bill payments, buying airtime or any other services on M-Pesa" he added.

M-Pesa is offered by Vodacom Tanzania Limited and Safaricom in Kenya – the region’s two biggest telecom operators. Vodacom has approximately 65% market share of mobile financial services in Tanzania whereas Safaricom commands over 80% share in Kenya. Meza further says, “Our combined distribution of over 150,000 agents in Tanzania and Kenya will ensure that our customers continue to enjoy the many benefits that M-Pesa offers them today. This groundbreaking service in the evolution of mobile financial services as we know it today is supported by a fully-fledged customer service unit that is reachable 24 hours every day.”

"Kenya is Tanzania’s largest trading partner and it was therefore logical that we activate the service there first. This is our own way of further cementing the ties that bind the people of the EAC region," says Meza. He goes on to say that communication is about connecting people and communities regardless of the geographical barriers that stand between them – something that Vodacom does only too well across the countries where it has a presence around the world.

Tanzania is home to approximately 300,000 Kenyans who remit funds to their home country via informal ways and channels including bus drivers, friends and family. There is also a sizeable part of the Tanzanian population that has chosen to educate their children in Kenya and rely on the very same means to transfer money. "This service will now empower a trader or a small business owner in Kariakoo or any other part of Tanzania to transact with his customers or suppliers in Kenya.  For the parents whose children go to school in Kenya, settlement of school fees has been simplified because of this service. Gone are the days that bus drivers, friends and family had to carry cash across the border to settle such dues For all Kenyans who reside in Tanzania today, M-Pesa now makes it easier for them to send and receive money home" added Meza.

"This service will also eradicate the need for people to carry large amounts of money in physical cash. For, it is CONVENIENT, SECURE and DIRECT and reaches the intended person INSTANTLY.  This is what Making Life Better is all about." says Meza.

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Vodacom and Tigo agree on mobile money interoperability

Millions of M-Pesa and Tigo Pesa customers in Tanzania will soon be able to send and receive money directly into each other’s wallets. This follows the recent signing of a mobile money interoperability agreement between Tigo and Vodacom.

The agreement announced today, will for the first time see four million Tigo Pesa users exchanging money directly with seven million M-Pesa customers. This is yet another tangible step towards the enhancement of financial inclusion in Tanzania as well as the expansion of the mobile money ecosystem in Tanzania. 

The International Finance Corporation (IFC) formulated the mobile-wallet-to wallet standards with support from Groupe Speciale Mobile Association (GSMA), (standards) which have been the basis of the interoperability discussions between mobile network operators in Tanzania.

Speaking at the signing ceremony in Dar es Salaam, Rene Meza, Vodacom Tanzania’s Managing Director said “This is a great evolution of the mobile money service in Tanzania. Our customers will soon be able to directly access the money received through Tigo Pesa and use it for whatever purposes they may have without necessarily having to cash it out.”

M-Pesa users can pay for an array of services from their phones. These include; TV subscriptions, Flights,  Insurance services, Utilities, Taxes, School fees, Pension Contributions  and Loans to name but a few.

In support of this, Meza says, "M-Pesa has added so much value to the lives of Tanzanians over the past seven years and the fact that this agreement with Tigo will see even more Tanzanians using our services to better their lives is indeed a major milestone.   We expect to launch the service by the end of the year and are currently working on upgrading our M-Pesa platform which will see us invest in excess of Tshs 150 billion/- to cater for the expected growth of users."

Meza went on to say that the agreement signed between the country’s two largest mobile operators’ networks would allow Vodacom’s M-Pesa users to directly send and receive money to an additional four million Tigo Pesa users across the country at no additional cost or inconvenience to them by the end of the year.

We are now working to ensure that we have both the technology and requisite resources needed to provide the quality of service that our customers have come to expect from us through the years…we are nevertheless excited about the opportunities posed by this new operating model. Our extensive agent network  which is over 85,000-strong as well as the enhancement of our M-Pesa service has  to date allowed our 7 million M-Pesa users  to be active players in the economy and we look forward to growing it even further. This is what making life better and financial inclusion is all about,” says Meza.

Source: Vodacom

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Tanzania's voice, data rates still low

Kenya, South Africa, Ghana, Nigeria and India charge more.

Tanzania enjoys one of the lowest voice rates per minute on the continent. The rate is comparatively low in contrast to Kenya at Tshs 80/-, Ghana Tshs 80.4/- and Nigeria Tsh 96/- per minute. Prior to the recent price increase, the blended average price of Tsh 23/- per minute was one of the the lowest in the world.  

Speaking in Dar es Salaam, Vodacom Tanzania’s Managing Director Rene Meza said his company has continually maintained low prices because it believes that access to communication services is a right that should be enjoyed by all and not a luxury.

Meza further said that 2014 was a great year for his company on many fronts and he would like to thank Vodacom customers for their continued loyalty and support…Customers made 45% more calls at significantly reduced rates. In addition to this, over 1.7 million Tanzanians chose Vodacom as their preferred communication services provider in 2014.

“Close to 50% of our customers use data today. This has in turn tripled internet usage on our network. We have more than 5.5 million customers who access the internet through their phones. The number of smart phone users on our network has grown by over 200% over the last year.  We now have over one million smartphones that are active on our network. We are therefore, a very active contributor to our country’s endeavor to create a knowledge based society.”

 

We need to invest in the enhancement of our network so as to continue to cater for the current and expected growth. We have several challenges that we face today…we are both a capital intensive industry and are very heavily taxed at 38.1%. This to an extent affects our ability to generate funds for reinvestment in the business. We were offering some of our products at below cost and are now realigning them so as to recoup some of our costs...,” he said.

 

“Vodacom offers a variety of very competitive products in the market. We have an array of very competitive packages that allow our customers to make calls, send SMS and browse the internet from as low as Tshs 500/- .  For Internet, Vodacom offers many options in daily, weekly, and monthly categories, to suit all customers’ needs. After the changes, Vodacom now charges Tshs 4.9/- per MB in a 5GB bundle, as compared to our  former price of  Tshs 3.9/- Per /MB for the same..  This is  still one of the lowest prices  per MB for the same product (5GB) within other key emerging markets - Nigeria charging Tshs 17/-, South Africa is Tshs 13/-, Kenya Tshs  12/-,  Ghana 7/- and India is at  T-shs 5/-, says Meza.

 

With regards to how his company was performing in other areas, Meza said M-Pesa users now stand over at 6 million and transact approximately Tshs 1.7 Trillion/- every month. “Our M-Pesa Wakala network has a national reach and is over 85,000 agent-strong. The phenomenal growth that we had in 2014 is reflected in our contribution to government revenue. We are now the 2nd largest payer in the country and the top in the telecoms sector,” he says.

 

“We invested Tshs 180 bn/- in our network in 2014 and this had a tremendous impact on our network as evidenced by the phenomenal growth that I mentioned earlier. Our 2015 planned  investment  of Tshs140 billion /- will therefore, cover 2G and 3G network expansion, Products and Services, IT Infrastructure as well as the enhancement of our M-Pesa service.  This is crucial to the financial inclusion agenda because we are committed to playing a part in enabling Tanzania achieve its targeted middle income by 2025,” said Meza.

 

On future growth, Meza said investment in the mobile communication services sector is capital intensive and continues to be hampered by, among other things, the existing energy infrastructure which requires telecom companies to connect most of their sites to generators running on fuel. Rural coverage despite the challenges that come with it, remains a priority for Vodacom Tanzania. “We believe this is where growth in the telecommunications industry will come from in the next decade. We have to date contributed in excess of the Tshs 4.5477bn/- to the Universal Communication Services Access Fund (UCSAF), “he says.

 

 In addition to UCSAF sites we have over 1300 sites in rural areas. All the regions and most districts in Tanzania now have 3 G coverage. “As smart phone user’s increase, so too will our 3 G footprint continue to expand across the country. Nevertheless, we continue to see a lot more whatsApp users in rural areas – a clear indication of the increasing uptake of technology in rural areas.”

Source:vodacom Tanzania

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Clients to settle hotel bills by Tigopesa

JOVAGO, an online hotel booking platform has announced its new partnership with Tigo where Tigopesa customers will now be able to pay for their accommodation booked on the platform with their Tigopesa account.

According to a statement made available to the Daily News, this comes at a time when integration of m-payments on online booking websites is seen as a crucial aspect in bolstering in the e-tourism industry.

“Africa is definitely moving on to the digital world, as part of this move we want to take in consideration the local market demands and habits, thus structure our strategies in response to the needs,” said the Jovago Managing Director, Ms Estelle Verdier.

This is the 2nd integration of a mobile payment service provider on the booking platform and the partnership allows guests more online convenience and speed in the booking process.

Ms Verdier said the partnership gives the customer yet another option for efficiency on top of the available card payments and pay-onarrival model.

Source:Dailynews

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Jubilee, Vodacom partner in health insurance

VODACOM Head of Marketing & Communications, Mr Kelvin Twissa, clarifies procedures to purchase health insurance services via M-Pesa during the launch of a product known as bimaAFYA to the Deputy Commissioner of Tanzania Insurance Regulatory Authority (TIRA), Mr Juma Makame in Dar es Salaam yesterday. Looking on is Jubilee Insurance Company Tanzania CEO, Mr George Alande

AT last the insurance sector in partnership with Vodacom Tanzania has made access to health services easily affordable to many people in the low-income bracket.

This follows a health cover launched by Jubilee Insurance Company Tanzania, a leading Insurance provider in East Africa, powered by Vodacom’s M-PESA.

The product known as bimaAFYA is an affordable and comprehensive medical cover that will provide individuals and family premium cover at low price range while giving the users access to over 150 hospitals.

The insured will get inpatient, out-patient and maternity services in the hospitals. bimaAFYA is designed to cater for monthly, tri-monthly, quarterly and yearly packs at affordable premium prices.

“Like other African countries, Tanzania has for a long time been accused of lacking a culture of adopting insurance covers to cater for the needs of her population.

“However we believe that the real reason is the high cost of medical insurance packages currently in the market which favour the corporate staff.

There is a large percentage of the population who still pay for their medical expenses out of pocket,” said Mr Kelvin Twissa, Vodacom Head of Marketing and Communications.

“bimaAFYA, will therefore enable many Tanzanians to enrol in a medical insurance service equivalent to what M-PESA is to the financial services,” added Mr Twissa.

The Jubilee Insurance company of Tanzania CEO, Mr George Alande, noted that statistics indicate that only 18 per cent of the Tanzanian population have health insurance.

He said those covered were mainly employer based medical insurance covers because only a few individuals could afford current prices.

According to the Tanzania Insurance Regulatory Authority (TIRA) in 2013, medical insurance premium compared to the total premium for insurance market was only 19 per cent of the total short term insurance covers sold.

“We need to increase this by covering all the Tanzanians who are able to pay the premiums charged under bimaAFYA product,” he said.

Source: Dailynews

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Kenya to receive M-SASA mobile payment platform

Dubai Bank Kenya has revealed a partnership with Rapid Communications. The partnership aims to launch a mobile banking platform called M-SASA.

According to both parties, M-SASA will allow clients to check their balances, request mini-statements, deposit and withdraw cash as well as transfer funds to other accounts from their mobile devices. The bank’s customers will also be able to track the progress of loan applications and pay bills when utilising the service.

Hassan Zubeidi, chairman of Dubai Bank Kenya, stated that: “Banks can no longer ignore the unbanked population and the only way to capture the masses is by moving banking to mobile. Rapid Communications will also maintain Dubai Bank’s mobile banking service and to assist in expanding its customers base with various innovations from its Mobile Financial Services.”

The company is currently working on a similar project for KUSCCO, which will see SACCO transactions move to the mobile platform that has been named “KUSCCO Pay.”

Source: ITNews

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Africa’s mobile users to hit half a billion

There will be over half a billion mobile phone users in sub-Saharan Africa in the next six years, according to this year’s GSMA Intelligence report.

The region remains the fastest growing in mobile telephony subscription, a trend attributed to its robust economic growth and the increasing affordability of mobile phone services.

By mid this year, there were 329 million unique subscribers representing a penetration rate of 38 per cent. Further, there were over 600 million SIM connections equivalent to a penetration rate of 68 per cent in the region as consumers and businesses increasingly use mobile use beyond communication.

This number is set to rise at a compound annual growth rate of seven per cent to reach just over half a billion in 2020.

Mobile phone firms have also deployed more 3G connections that accounted for only 15 per cent of the total base in 2013 and are expected to rise to over half by 2020, making the region among the largest in terms of 3G connections only behind the highly populated Asia-Pacific region.

The rise in 3G connections largely reflects the accelerating rate of smartphone use. Sub-Saharan Africa is forecast to witness the highest growth of any region in terms of the number of smartphone connections (between 72 and 525 million) over the next six years. This means over half of the total connection then will be on smartphones.

The growing adoption of smartphones along with other data-capable devices such as tablets is in turn driving an explosion in data traffic.

The region’s mobile data traffic is forecast to record a 20-fold increase from 2013 to 2019, about twice the global growth rate.

This upswing is expected to push up revenue for the mobile companies across the region. The firms have already seen strong jump in revenues in the last few years, driven in particular by an increase in the number of connections and subscriber base.

Revenues grew at a compound annual growth rate of 7 per cent yearly between 2008 and 2013. The growth rates are however set to slow slightly going forward, but increasing data traffic will see revenue growth remain at a healthy 5.6 per cent up to 2020.

This calls for more investments in the network capacity to cope with the expected growth in data traffic, as well as increase in 3G coverage.

In 2013, the mobile industry contributed 5.4 per cent to overall gross domestic product in the region, and this is forecast to increase to 6.2 per cent by 2020.

The mobile industry is also a significant source of jobs in sub-Saharan Africa directly employing nearly 2.4 million people. This is also expected to increase to around 3.5 million by 2020.

The industry also makes a very large contribution to the funding of the public sector in the form of general taxation ($13 billion in 2013), and through further payments in the form of licence as well as regulatory fees and spectrum auctions.

Despite the progress to date, there remains a significant proportion of the population in the region who do not have access to the internet.

At the end of 2013, there were almost 150 million individuals using mobile devices to access the internet in sub-Saharan Africa. This is equivalent to an overall mobile internet penetration rate of only 17 per cent of the total population, compared to a global average of just over 30 per cent.

This figure will more than double by 2020, reaching 38 per cent, with an additional 240 million people across the region gaining mobile internet access by that date.

There are a number of barriers to extending mobile internet access in sub-Saharan Africa, with affordability and network coverage in rural areas being key challenges given high levels of poverty.

More than 70 per cent of the population lives in rural areas.

Telcoms, governments, regulators and other entities all have a role to play in addressing these barriers. Allowing commercially-agreed network sharing and ensuring timely release of digital dividend spectrum will be key in enabling growth of network coverage.

Source:Dailynation

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