Tigo Head of Mobile Financial Services, Ruan Sawnepoel, said in a statement to the press that for the first time the nano loans product, called Tigo Nivushe will allow Tigo Pesa customers to build their own credit history and being open to any Tigo Pesa customer turns the typical lending models upside down. No security is required or taken and the loan product has been designed to be transparent and foster responsible lending. Explaining the product’s flexibility, Swanepoel said Tigo Nivushe offers different lending periods with variable administrative costs based on the length of tenure. The loans – with an average of Tsh 10,000 (US$ 5) – are processed in real-time and funds transferred within minutes. As customers build up their credit history they are able to borrow higher amounts with lower administration fees. Loans are delivered directly to the mobile wallet so customers can immediately use the funds to pay bills, transfer to others, or cash out at the thousands of agents across the country, he noted. Photo Credit: ITNewsAfrica Tigo Tanzania (MIC Tanzania Limited) was founded in 1993 as a joint venture between Millicom International Cellular, Ultimate Communications Limited of Tanzania and Tanzania Posts and Telecommunications Corporation. In 2006, Millicom took full control of MIC Tanzania Limited after buying out its partners. Tigo Tanzania has approximately 10 million registered subscribers and directly and indirectly employs around 300,000 Tanzanians. Millicom International under the Tigo brand operates in Chad, DR Congo, Ghana, Rwanda, Senegal, Tanzania and in Latin America. In 2014, Tigo started an unprecedented service in East Africa that pays interest on mobile money balances with subscribers earning interest rates of between 7 and 9 percent quarterly. This service is a direct hit at traditional banks that still struggle with low penetration in the East African region.
