Customers of a leading telecommunications company in Tanzania have received US$2.3 million as profit share paid every quarter.
Tigo Tanzania, said to be the first company in the world to pay its mobile money customers dividends, introduced the system in 2014.
A press statement issued by the telecom shows a quarterly profit share growth of 18% with payment to customers rising from US$2 million for the quarter ending December 2015 to US$2.3 million that the company is paying out for the quarter ending March 2016.
Cumulatively, Tigo Pesa users have earned US$18.5 million in profit share since the scheme started. The payment is profit accruing in the Tigo Pesa Trust accounts held with major commercial banks in the country, according to Ruan Swanepoel, Tigo Head of Mobile Financial Services.
The profit share recipients are individual customers, retail agents and other Tigo business partners who each receive payment based on the e-value they stored in their Tigo Pesa wallets, Ruan says.
“We are really excited to be announcing this increased profit share distribution for the eighth successive time. This underlines our commitment to provide financial access to our customers and the country at large through our Tigo Pesa services,” Ruan Swanepoel says.
Swanepoel attributes the increased profitability to Tigo’s to improved market condition and steady growth in the number of Tigo Pesa users, in particular from the merchant segment. Tigo Pesa currently has the largest network of over 50,000 merchants.
The return to customers is calculated based on Tigo Pesa customers’ average daily balance stored in their mobile wallet.