by Chikondano Faith Chisala - Africa, Technology -

MICROCAPITAL BRIEF: Tigo Introduces Cross-border Mobile Money Transfer Service With Currency Conversion Serving Rwanda, Tanzania

Millicom International Cellular, a Luxembourg-based telecommunications company also known as Tigo, recently introduced a cross-border mobile money transfer service between Rwanda and Tanzania that includes currency conversion. The service allows Tigo Cash and Tigo Pesa mobile banking subscribers in Rwanda and Tanzania, respectively, to send money to each other using their mobile phones [1]. According to Mr Maramba, General Manager for Tigo Rwanda, the service is intended to provide convenient local-currency money transfers as an alternative to traditional money-transfer transactions that deliver mostly in US dollars [2]. The service currently is being made available free of charge.

At end of 2013, Millicom reported assets of USD 9.15 billion and 50 million mobile subscribers [3]. There are a reported 694,000 active users of Tigo Cash in Rwanda and 2.7 million active users of Tigo Pesa in Tanzania as of year-end 2013 [4].

By Chikondano Faith Chisala, Research Associate

About Millicom International Cellular (Tigo): Founded in 1990, Millicom International Cellular, also known as Tigo, is based in Luxembourg and provides mobile phone network access in 13 countries in Latin America and Africa. At the end of 2013, Millicom reported assets of USD 9.15 billion. Tigo has 50 million subscribers.

Sources and Additional Resources:

[1] Millicom Press Release, “Millicom launches world’s first international mobile money service with currency conversion,” http://mb.cision.com/Main/950/9541133/213767.pdf
[2] African Press Organisation, “Tigo pioneers world’s first mobile money transfer with currency conversion with service between Rwanda and Tanzania,” http://appablog.wordpress.com/2014/02/24/tigo-pioneers-worlds-first-mobile-money-transfer-with-currency-conversion-with-service-between-rwanda-and-tanzania/
[3] Millicom Earnings Release, “Millicom Results FY 2013,” http://www.millicom.com/media/244378/Q4-Millicom-Earnings-Release.pdf
[4] Millicom Earnings Release, “Financial Operational Data Final-2013
Perimeter,” http://www.millicom.com/investors/results,-publications,-presentations/

MicroCapital Article, June 5, 2013, “Tigo Ghana, EBAccion, Cherie Blair Foundation for Women, USAID to help Women Become Mobile Money Agents,” https://www.microcapital.org/microcapital-brief-tigo-ghana-eb-accion-cherie-blair-foundation-for-women-usaid-to-help-women-become-mobile-money-agents/

MicroCapital Article, April 14, 2013, “Tigo Launches Mobile Banking Service in Chad to Compete with Airtel,” https://www.microcapital.org/microcapital-brief-tigo-launches-mobile-banking-service-in-chad-to-compete-with-airtel/

MicroCapital Article, January 3, 2013, “Millicom, Cherie Blair Foundation for Women, US Agency for International Development Offer Financial Literacy Training, Loans to Rwandan Women to Become Tigo Mobile Money Agents,” https://www.microcapital.org/microcapital-brief-millicom-cherie-blair-foundation-for-women-us-agency-for-international-development-offer-financial-literacy-training-loans-to-rwandan-women-to-become-tigo-mobile-money-agents/

MicroCapital Article, November 9, 2011, “MicroEnsure, Tigo, Milvik, Golden Crescent to Deliver Tigo Bima Microinsurance Product in Tanzania,” https://www.microcapital.org/microcapital-brief-microensure-tigo-milvik-golden-crescent-to-deliver-tigo-bima-microinsurance-product-in-tanzania/

MicroCapital Universe Profile: Millicom International Cellular (Tigo), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Millicom+International+Cellular

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Chikondano Faith joined MicroCapital after holding various rolse at a commercial bank, where she improved and diversified her skill set by exploring many banking functions including: trading, treasury management, credit analysis and business development. She developed an interest challenges faced by entrepreneurs in emerging economies after taking up a small business development and entrepreneurship course during her undergraduate studies at the University of Pretoria in Pretoria, South Africa. She holds also Masters degree in Strategic Management from the University of Derby, her independent study topic focused on strategies to support Small and Medium Enterprises (SMEs) in Malawi. In working with MicroCapital, she hopes to expand her knowledge of microfinance and to use this internship as a foundation to pursue a career in micro and developmental finance. Chikondano Faith enjoys travel, drawing, jazz music, and improving her French during her spare time.