Tanzania’s leading digital communication and technology company, Vodacom Tanzania PLC announced that it will dish out a total of TZS 3,928,312,789 in dividend to its M-Pesa customers who have used the service over the past year.
The dividend payment covers the first quarter of the company’s financial year. Speaking on this, Vodacom’s M-Commerce Director Mr. Epimack Mbeteni said that the profit will be paid to all individual customers, retail agents and other M-Pesa business partners who will receive payment based transactions made via their mobile wallets.
“Our mobile money service, M-Pesa, continues to be a remarkable success story, delivering significant social and financial value to Tanzanians. We have seen substantial growth on the M-Pesa platform with more customers, agents, merchants and institutions transacting around TZS 100 billion each day. I line with regulations of the Central Bank of Tanzania, interest earned from the deposit is periodically shared with the customers. Today we are happy to share a dividend of Tzs 3.9 Billion (equivalent to USD 1.6 Million) with our over 11 million customers across the Nation,” he said.
Vodacom Tanzania PLC has over 11 million customers on its M-Pesa platform commanding a market share of 40% according to recent TCRA figures. The company has so far paid out a total of Tsh 143.5 billion (over USD 62 Million) as interest pay out since July 2015 when Bank of Tanzania enacted the regulation.
Mbeteni added that the profit share per customer is calculated as per the Bank of Tanzania circular and will depend on, among other things, the level of activity they would have had on M-Pesa for the said period.
“We have started distributing the money to customer M-Pesa wallets. Customers can SMS the word AMOUNT to 15300 to find out how much interest they will receive. Upon receiving the disbursed amount, M-Pesa customers can redeem the interest via cash withdrawal, airtime or bundle purchases or even transact the bonus to pay bills or purchase products” he added.
In 2018 Vodacom M-Pesa was awarded the GSMA Mobile Money Certification (MMC) after passed by 100 percent in the following categories: safeguarding of customer funds, service security, safeguarding of customer data and privacy, and mitigation against money laundering, terrorist financing, and fraud risks. And in Tanzania, M-Pesa as the very first mobile money product to enter the market in 2008. Today the innovation has helped the country attain its over 70% financial inclusion index up from 15% in 2008.
The Vodacom M-Pesa platform is the most advanced in the country offering tailor-made products suited for the Tanzania market which have increased financial inclusion and stimulated economic activity across Tanzania. Such products include; Songesha an overdraft facility, M-Kopa a group savings account, Lipa Kwa M-Pesa allowing C2B transactions, M-Pawa a savings and loans platform and many more.
“We will continue to lead in innovation, bringing more Tanzanians into an inclusive digital economy, increasing the number of customers using our mobile money offerings and expanding on our enterprise services, focusing on strategic partnerships and maintaining the widest range of services that make payments faster, easier and more convenient and safer for businesses and individuals alike.” Mbeteni concluded.