PRESIDENT JAKAYA KIKWETE LAUNCHES VODACOM AND COMMERCIAL BANK OF AFRICA'S M-PAWA SERVICE

Vodacom Tanzania Managing Director, Rene Meza welcomes President Jakaya Kikwete to Mlimani City Hall, where the launch of M-Pawa took place. Looking on is Commercial Bank of Africa Board Chairman, Ndewirwa Kitomari and Vodacom Tanzania Board Chaiperson, Ambassador Mwanaidi Maajar.

 President Jakaya Kikwete (3rd left) together with (from left), CBA Board Chairman, Ndewirwa Kitomari, Vodacom Tanzania Board Chairperson, Ambassador Mwanaidi Maajar, Vodacom Tanzania Managing Director, Rene Meza, Minister of Communication, Science and Technology, Professor Makame Mbarawa, CBA Group Chairman Desterio Oyatsi and CBA Group Vice Chairman, Muhoho Kenyatta soon after the President launched the M-Pawa service in Dar es Salaam yesterday.

 Invited guests follow proceedings at the launch of the M-Pawa service.

 President Jakaya Kikwete (2nd right) sharing a light moment with the Minister of Communication, Science and Technology, Professor Makame Mbarawa and Vodacom Tanzania Managing Director, Rene Meza.

Artists performing during the launch of the M-Pawa service.

Vodacom M-Pesa subscribers can now save and borrow money using their mobile phones.

What’s more, the subscribers will also earn interest on their M-Pesa savings account in a new product by the company that will entrench its position as the market leader.

Through the facility called M-Pawa, Vodacom’s customers will be able to borrow from Commercial Bank of Africa (CBA) for a first in Tanzania’s vibrant telecommunication sector.

President Jakaya Kikwete launched the initiative yesterday at a colourful ceremony in Dar es Salaam. He said M-Pawa will accelerate access to financial services, particularly credit to common Tanzanians.

“We can assure you of our cooperation to establishing safety and security systems to make this service more beneficial and minimize risks. I urge the National Identification Authority (NIDA) to hasten issuance of the national identity cards which are also important,” said President Kikwete.

Tanzania’s Vodacom and CBA partnered to enable M-Pesa users to create an account with the bank through their mobile phones and conduct transactions like deposits and withdrawals. The service will attract no fee charges, according to CBA and Vodacom officials.

Customers can access credit of up to TZS 500,000, depending on the credit score, in an eight seconds process. The money would be repaid in 30 days at a 9% one-time fee.

Kenya has a similar service called M-Shwari offered by Safaricom and CBA Kenya. Mobile financial services are said to have accelerate access to financial services in Tanzania in the recent years.

According to the Finscope Survey 2013 released in April this year, Tanzanina adults using financial services (financial inclusion) increased from 15.8% in 2009 to 57.4% in 2013 pushed by mobile money services. The government was targeting to reach 50% come 2016.

The volume of monthly transactions in the mobile money services provided by Vodacom, Tigo, Airtel and Zantel are estimated at TZS 2 trillion, according to President Kikwete citing data from the Bank of Tanzania.

Vodacom M-Pesa alone facilitates transactions worth TZS 1.5 trillion per month, Mr Rene Meza, Vodacom Tanzania Managing Director, said.

“M-Pawa is a platform for people to grow their money. You save and get interest as you gain credit rating. This service is expected to reach millions of Tanzanians who are currently outside the formal banking system,” said Mr Meza as he stressed in Kiswahili saying “haba na haba hujaza kibaba.”