Burgess COMMENTARY

Peter Burgess

Vodacom Tanzania, CBA launch mobile money banking product

Vodacom Tanzania and Commercial Bank of Africa (CBA) have launched a banking service named M-Pawa allowing Tanzanians to save and borrow money on their mobile phones.

Similar to Kenya’s M-Shwari, launched by CBA with Safaricom, M-Pawa combines CBA’s banking platform with M-Pesa’s distribution system, which boasts over 65,000 agents across Tanzania.

Tanzania’s president Jakaya Mrisho Kikwete said the launch of M-Pawa highlights the success in reforms made in the country’s financial sector, coupled with heavy investment made by mobile communication players.

“This has allowed our people to access affordable financial services through their mobile phone,” he said.

Vodacom Tanzania managing director Rene Meza said the service will further enhance Tanzania’s financial inclusion agenda.

“M-Pawa is easy to use since the customers do not need to fill in application forms while opening the account. They can open a bank account by simply accessing the M-Pesa menu on their phone and selecting M-Pawa. Furthermore, there are no ledger fees, limits on the frequency of withdrawals, minimum operating balances and charges on deposits and withdrawals from M-Pesa to M-Pawa accounts and vice versa,” he said.

CBA Tanzania board chairperson Ndewirwa Kitomari said Vodacom was a natural choice as delivery partner because of its extensive coverage of the country coupled with its strong M-Pesa agent network, which will allow for rapid uptake of the product.

“We are optimistic that this service will grow in Tanzania because various studies have shown us that most people want to save and grow their money but are unable to do so because they are unable to meet most of the requirements of the formal banking sector. M-Pawa is our response to this need,” said Meza.

Customers can sign up for M-Pawa by accessing the M-Pesa menu on their phone, selecting M-Pawa and then choose between saving, withdrawing or taking out a loan.

For a subscriber to qualify for a loan, they need to have used M-Pesa for at least six months and have a saving history on M-Pawa.

Vodacom Tanzania has also integrated its M-Pesa service with 21 commercial banks in the country.

Tanzania: CBA, Vodacom Launch 'Mshwari' in Tanzania BY KAMAU MBOTE, 15 MAY 2014

Commercial Bank of Africa and Vodacom have launched a save and borrow service via mobile money in Tanzania that will open up millions to credit facilities.

The banking service dubbed M-Pawa was launched by Tanzania's president Jakaya Kikwete in Dar es Salaam terming it a highlight in the success made in the financial sector supported by investments in the telecommunications industry.

'This has allowed our people to access affordable financial services through their mobile phone,' he said.

Tanzanians will be able to save as little as a single shilling with borrowings dependent on the customer's saving habits.

According to Vodacom Tanzania managing director Rene Meza the technology does away with the need to use paper in banking as well as the stringent requirements to acquire credit.

'M-Pawa is easy to use since the customers do not need to fill in application forms while opening the account. They can open a bank account by simply accessing the M-Pesa menu on their phone and selecting M-Pawa. Furthermore, there are no ledger fees, limits on the frequency of withdrawals, minimum operating balances and charges on deposits and withdrawals from M-PESA to M-Pawa Account and vice versa,' Meza added.

CBA Tanzania through its Board Chairperson, Ndewirwa Kitomari says Vodacom was chosen due its extensive coverage of East Africa's largest country coupled with its strong M-Pesa Agent network, which will allow for the rapid uptake of this product

Vodacom currently has 5 million customers using M-Pesa with the mobile money service the preferred payment solution for over 200 businesses in Tanzania which continue to benefit from the M-Pesa payment ecosystem.

'We are optimistic that this service will grow in Tanzania because various studies have shown us that most people want to save and grow their money but are unable to do so because they are unable to meet most of the requirements of the formal banking sector. M-Pawa is our response to this need,' said Meza.

For a subscriber to qualify for a loan, they need to be have used M -PESA for at least 6 months and have a saving history on M-Pawa.