MICROCAPITAL BRIEF: Tigo, Airtel, Zantel Link Mobile Money Systems in Tanzania

Millicom International Cellular, a Luxembourg-based telecommunications company also known as Tigo; Airtel Tanzania, a subsidiary of Indian telecommunications company Bharti Airtel; and Zantel Tanzania, a telecommunications company owned by Etisalat of the United Arab Emirates, recently announced an agreement to allow customers of the three firms’ mobile money services to send and receive money to and from users of all three systems. Additionally, the customers of the three companies are now able to send money at unspecified lower rates and make withdrawals without the need to use personalized identification number (PIN) codes to verify their identity.

As of 2013, Millicom reported assets of USD 9.15 billion and 50 million mobile subscribers. There are approximately 2.7 million active users of Tigo Pesa in Tanzania. As of December 2013, Airtel claimed approximately 287 million subscribers in 20 countries across Africa and Asia.

As of July 2013, Etisalat reported net revenues of AED 32.9 billion (USD 9 billion), net profit of AED 13.2 billion (USD 3.6 billion) and operations in 15 countries throughout the Middle East, Africa and Asia. Zantel Tanzania, which has 1 million mobile phone customers, introduced Z-Pesa in 2008.

By Juan Blanco, Research Associate

About Millicom International Cellular (Tigo)

Founded in 1990, Millicom International Cellular, also known as Tigo, is based in Luxembourg and provides mobile phone network access in 13 countries in Latin America and Africa. At the end of 2013, Millicom reported assets of USD 9.15 billion. Tigo has 50 million subscribers.

About Bharti Airtel

Founded in 1995, Bharti Airtel (Airtel) is an Indian telecommunications company headquartered in New Delhi. Airtel operates Airtel Money, whereby users can transfer money, pay bills and perform financial transactions from their mobile phones. As of December 2013, Airtel claimed approximately 287 million subscribers in 20 countries across Africa and Asia.

About Emirates Telecommunications Corporation (Etisalat)

Founded in 1976, the Emirates Telecommunications Corporation, which uses the trade name Etisalat, is a telecommunications services provider based in the United Arab Emirates. The United Arab Emirates government holds a 60-percent share of the company, leaving the remaining 40 percent to be publicly traded. As of July 2013, Etisalat reported net revenues of AED 32.9 billion (USD 9 billion), net profit of AED 13.2 billion (USD 3.6 billion) and operations in 15 countries throughout the Middle East, Africa and Asia. Information on the number of subscribers is unavailable.

Sources and Additional Resources

[1] African Press Organization, “Tigo, Airtel and Zantel to enable mobile money payments between their customers in Tanzania,” 2014, http://appablog.wordpress.com/2014/06/04/tigo-airtel-and-zantel-to-enable-mobile-money-payments-between-their-customers-in-tanzania/

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

MicroCapital, October 29, 2013, Airtel, Tanzania Postal Bank (TPB) Partner to Offer Mobile Banking Services

MicroCapital, February 22, 2012, Zantel Tanzania Rebrands Mobile Cash Service Z-Pesa as Ezy Pesa, Adds Salary Access Option, Microinsurance, Linkage to CRDB Bank Accounts

MicroCapital Universe Profile: Millicom International Cellular (Tigo)

MicroCapital Universe Profile: Bharti Airtel

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