Vodacom drives Tanzania banking

Johannesburg, 11 Apr 2008

Cellular operator Vodacom is planning to introduce a money transfer service to its customers in Tanzania later this month.

Says Vodacom Tanzania MD Dietlof Mare: "M-Pesa, meaning M for mobile and Pesa for money in Swahili, is one of the world`s first cellphone-to-cellphone pesa transfer services for people who do not have access to conventional banks. Of the 21 million Tanzanians over the age of 16, only 1.6 million currently have a bank account, but more than 7.5 million Tanzanians have a cellphone, or have access to a cellphone."

However, only Vodacom`s 4.1 million Tanzanian customers will be able to send money transfers through the system. Recipients of the transfers do not need to be Vodacom customers, but do need to have access to a cellphone account.

Vodacom Group CEO Alan Knott-Craig says the introduction will add to the benefits currently offered through mobile communications.

"Cellphone-to-cellphone pesa transfer will add huge value to the lives of many more people. This highly-sophisticated technology will make it possible for millions of Tanzanians who do not have ready access to banking, to safeguard and distribute their capital. The economic benefits, especially in rural areas, will be enormous," he comments.

M-Pesa was originally developed and deployed by Vodafone in Kenya. The service has been running for over a year and upwards of 1.6 million active customers are subscribed. In February, Vodafone launched the service in Afghanistan.

Mare says the service should be available in Tanzania from 28 April.