Vodacom Tanzania marks 10 years of M-Pesa
Vodacom Tanzania PLC is celebrating 10 years of M-Pesa, now boasting 8.2 million active users since its launch in 2008. Over the past decade, Vodacom M-Pesa has evolved from a simple mobile money transfer platform, into a robust ecosystem of services covering utility payments, mobile banking, savings and loans and international remittance.
Speaking to journalists at the company’s headquarters, Vodacom Tanzania’s outgoing Managing Director Ian Ferrao said, “The M-Pesa eco system has created a strong direct and indirect labour force of more than 200,000 agents many of which are first time entrepreneurs-making it possible for more than Tzs 617 billion to be paid out as commissions to Wakalas (agency) everywhere in Tanzania. A further Tzs 120 billion has been issued as loans since the launch of M-Pawa (the savings and loans facility) in 2014 further enabling entrepreneurs to start new businesses and improve their lives.
To date over Tzs 99 Billion has been issued as interest payment to our 8.2 million M-Pesa users and over Tzs 355 billion is deposited in our trust accounts across various banks in Tanzania. This means that with M-Pesa, your money is constantly earning interest through trust accounts.”
With 42% market share M-Pesa is the market mobile money leader in Tanzania. The growth of M-Pesa in Tanzania and across the continent has advanced opportunities for financial services to reach the unbanked and provide an easy, secure and affordable payment and saving system. Through its powerful ecosystem, M-Pesa has enabled people in both urban and rural areas of Tanzania to become part of the formal financial system consequently spurring economic growth in terms of employment creation (106, 000 agents), community empowerment and improving business efficiencies particularly for SMEs with 200, 000 and 15,000 merchants and 30 banks linked to the M-Pesa network.
This, further contributing towards the nation’s financial inclusion index of 65% in 2017, up from 58% in 2013 and 44% in 2009. Furthermore, over 35% of the National GDP is transacted via M-Pesa every month and the number of transaction has grown to 1.2 trillion transactions per month.
The success of M-Pesa in the last decade marks the beginning of a promising future in digital payments in Tanzania. M-Pesa is the first and only mobile money service in Tanzania with QR codes further consolidating Vodacom’s leadership in innovation and technological investments not only in Tanzania but in Africa. The commemoration comes shortly after Vodacom M-Pesa was awarded the GSMA Mobile Money certification for security and operational excellence putting Vodacom M-Pesa on the global arena as one of the first operators in the world to receive such a prestigious award. To celebrate M-PESA’s success, Vodacom will host a number of consumer events and campaigns across the country.