The Bank of Tanzania has revealed that money transactions worth US$654mn have been made in the last two years through the use of mobile money payments and transfers
At a conference of financial institutions in Arusha, Benno Ndulu, the governor of the bank, said, “The number of mobile money accounts was 20.4mn by September 2010 and by September 2012 the number of subscribers was 63 per cent of the adult population; it is estimated that about one third of subscribers have two accounts.
“By our estimates, during the month of September alone, the value of mobile money transaction was about 14 per cent of commercial bank’s total private sector deposits. Also impressive has been the increase in the number of user’s of mobile phone financial services, evidently showing increased access to these services.”
The conference was officially opened by President Jakaya Kikwete who decried the low financial inclusion of Tanzanians due to ignorance of existing services offered by banks and long distances between bank branches.
Ndulu, however, assured that millions of Tanzanians without bank accounts were still able to use mobile payment service to make payments, send remittances and store funds for short periods.
He explained, “Some companies like Precision Air, TANESCO and micro-finance institutions, have linked with mobile network operator's platforms to facilitate payment for goods, services, disburse loans, loan re-payments deposits and withdraws, while some government taxes can now be remitted to Tanzania Revenue Authority (TRA) through mobile money.
“By riding on these rails, the institutions have reduced risks of carrying cash, cost savings on travel expenses while M-banking and M-payments has virtually obliterated physical distances in terms of effecting payment of bills among others.”
