Tigo launches mobile money service that converts cash

Telecoms firm Tigo has launched a multi-currency mobile money transfer service for its subscribers in Tanzania and Rwanda in a move expected to reduce foreign exchange conversion costs.

The new service allows Tigo subscribers in Tanzania to send money from their Tigo Pesa accounts to Tigo Cash subscribers in Rwanda and vice versa. 

The system integrates currency conversion whereby money is sent in either Tanzania shillings or Rwandan francs and delivered in the currency of the recipient’s country. 

Save time and money

“This new product will save customers time and money. International senders currently have to go to a money changer to exchange Rwanda francs to dollars and then bring those dollars to remittance companies to send. They can now send money directly from their phones, “ said Tigo Tanzania general manager Diego Gutierrez.

The new service is expected to benefit businesses in cross-border trade, diaspora families, truck drivers, importers and exporters from both countries.

Tanzania is Rwanda’s second biggest trading partner. In 2013, Rwanda imports from Tanzania amounted to $80 million while Tanzania received imports valued at $231 million from Rwanda.

First of its kind

Mr Gutierrez said that the product was the first of its kind that allows dual currency international mobile to mobile transfers with currency conversion included.

“It is an added convenience that they can receive directly as Rwandan Francs because traditional money transfer companies mostly deliver only dollars. 

‘‘This product enables consumers not to worry about exchanging money,” Tigo Rwanda general manager Tongai Maramba said.

The service was launched simultaneously in Kigali and Dar-es-Salaam where the Rwanda finance minister undertook the first mobile money transactions between the two countries.