Tigo Tanzania to distribute Sh14bn profits to customers

Wednesday September 3 2014

Head of Tigo Pesa Andrew Hodgson speaks to

Head of Tigo Pesa Andrew Hodgson speaks to journalist yesterday in Dar es Salaam.  Left is Tigo General Manager  Diego Gutierrez.  PHOTO | SAID KHAMIS 

By Felix Lazaro,The Citizen Reporter

Dar es Salaam. 3.5 million subscribers of Tigo Tanzania will share a staggering Sh14.25 billion ($8.7 million) of profits accumulated on mobile money account, the company announced yesterday.

Held by the Bank of Tanzania (BoT), Tigo Pesa Trust Account contains deposits of all the funds from Tigo Pesa users since Tigo mobile money operations started almost four years ago.

The account generated profit through interests which Tigo says is now in a position to distribute these profits to its mobile account holders including super and retail agents as well as consumers.

The central bank approved the payment in a letter of Non-Objection granted this July, Tigo general manager Diego Gutierrez said yesterday.

“For the past three and a half years the Tigo Pesa Trust has been accumulating returns at rates between 5 and 12 per cent which had reached a value of Sh14.25 billion shillings by June this year. The objective of this dividend is to offer all Tigo Pesa stakeholders an opportunity to share in this return on their investment depending on the e-value they have stored in their Tigo Pesa wallets,” said Mr Gutierrez.

Tigo becomes the first telecom company in the world to share its Trust Account profit, through mobile money, he said.

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He added that the average return which a stakeholder could receive varies based on their average daily balance in their e-wallet; either as a super-agent, retail agent or customer.