MICROCAPITAL BRIEF: MTN, Airtel Launch Rwanda-to-Tanzania Mobile Remittance Service

Mobile Telecommunications Network (MTN) Rwanda, a subsidiary of South Africa’s MTN Group, and Airtel Tanzania, which is controlled by Indian telecommunications company Bharti Airtel, recently launched a remittance service allowing MTN Rwanda customers to use their mobile phones to send money to customers of Airtel Tanzania. The service runs via Mobile Financial Services (MFS) Africa, a South Africa-based network that facilitates cross-border money transfers.

MTN Rwanda cites the new partnership as an element of a larger plan to expand its remittance services to other African countries. MTN Rwanda users could already send money to Kenya, Uganda and Zambia.

Airtel Tanzania and MTN Rwanda both provide cellular network coverage and internet access in addition to money transfers. MTN Rwanda, which was established in 1998, reports 1.7 million mobile-money users transferring RWF 130 billion (USD 149 million) per month as of 2018. It had a total of 3.5 million active subscribers as of 2017. Launched in 2001, Airtel Tanzania has approximately 11 million subscribers as of December 2017. As of March 2016, it reported servicing approximately 4 million mobile-money accounts.

Airtel Tanzania is a unit of Netherlands-based Airtel Africa, whose subsidiaries provide telecommunications services in 14 African countries. Airtel Africa, in turn, is a subsidiary of Bharti Airtel, whose business units serve approximately 305 million subscribers as of 2018. For the year ending March 2018, Bharti Airtel reports revenue of INR 197 billion (USD 3 billion) and pretax profits of INR 1.2 billion (USD 18 million).

Established in 1994, MTN Group is a telecommunications company with 230 million active subscribers in Cyprus, Iran, Syria and Yemen and 20 African countries as of 2018. It reports 2017 revenue of ZAR 133 billion (USD 11 billion) and pretax profits of ZAR 9.6 billion (USD 772 million).

Founded in 2009, MFS Africa partners with African mobile phone carriers to allow their users to conduct cross-border money transfers. As of 2018, MFS Africa partners with 21 mobile operators serving approximately 170 million customers.

By Nicholas Galimberti, Research Associate

Sources and Additional Resources

Mobile World Live article
https://www.mobileworldlive.com/featured-content/money-home-banner/mtn-launches-rwanda-to-tanzania-remittance/

MTN Rwanda background
http://www.mtn.co.rw/Content/Pages/15/About_MTN_Rwanda

MTN Group background
https://www.mtn.com/en/mtn-group/about-us/Pages/default.aspx

MTN Group annual report
http://www.mtn-investor.com/reporting/prelims-2017/pdf/booklet-annuals-2017.pdf

Airtel Tanzania background
http://africa.airtel.com/wps/wcm/connect/africarevamp/Tanzania/Home/About/

Airtel Africa background
http://africa.airtel.com/wps/wcm/connect/africarevamp/africa/home/about-us/company-overview

Bharti Airtel finances
https://s3-ap-southeast-1.amazonaws.com/bsy/iportal/images/Published-Consolidated-Results_1A22AC2AC5BCF6DD8C589D5CDC3988BF.pdf

MFS Africa website
http://mfsafrica.com/footprint/

Connecting Africa article
http://www.connectingafrica.com/document.asp?doc_id=739288

Economic Times article
https://telecom.economictimes.indiatimes.com/news/indias-total-mobile-subscriber-base-stands-over-1-bn-in-march-airtel-leads-with-29-37-market-share/64001454