MICROCAPITAL BRIEF: Millicom’s Tanzanian Arm Distributes Profits of $1.8m to Tigo Pesa Mobile Money Customers

Millicom International Cellular, a Luxembourg-based telecommunications company that operates the brand Tigo, recently announced that its Tanzanian unit will distribute third quarter profits of TZS 3 billion (USD 1.8 million) to users and agents of Tigo Pesa, a mobile money service accessed by 3.6 million customers. This is the second round of profit distribution, after it paid TZS 14.25 billion (USD 8.64 million) three months earlier.

The higher amount disbursed in the first round is due to the accumulation of profits over the course of three and half years, while the funding for the second round originates from “profit accumulated from funds held in trust in commercial banks for three months in the quarter July to September 2014,” according to Diego Gutierrez, Tigo’s General Manager. The next round is expected to be paid out in February 2015 and will cover the profits from October to December 2014.

By Simon Pfanner, Research Associate

About Millicom International Cellular (Tigo)

Founded in 1990, Millicom International Cellular is based in Luxembourg and provides mobile phone network access, television, online and mobile financial services in 13 countries in Latin America and Africa largely through the brand name Tigo. At the end of 2013, Millicom reported assets of USD 9.15 billion.

Sources and Additional Resources

[1] Tigo World Press, Announcement of regular quarterly payments worth 3bn/-(US$ 1.8million) to TigoPesa users.

MicroCapital, March 18, 2014, Tigo Introduces Cross-border Mobile Money Transfer Service With Currency Conversion Serving Rwanda, Tanzania

MicroCapital, June 5, 2013, Tigo Ghana, EB Accion, Cherie Blair Foundation for Women, USAID to Help Women Become Mobile Money Agents

MicroCapital, April 14, 2013, Tigo Launches Mobile Banking Service in Chad to Compete with Airtel

MicroCapital Universe Profile: Millicom International Cellular (Tigo)

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