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Tanzania: Tigo teams up with Absa and Jumo to scale financial Inclusion

Tigo Pesa partners Absa Bank Tanzania and Jumo to boost the availability of existing short-term credit product 'Tigo Nivushe'

Tigo Pesa has teamed up with Absa Bank Tanzania and Jumo - a banking technology provider to boost the availability of existing short-term credit product 'Tigo Nivushe.'

With this partnership, we will create more opportunities for our customers to access loans that can improve their daily lives. Angelica Pesha, Chief Officer for Tigo Pesa

According to Angelica Pesha, Chief Officer for Tigo Pesa, "The re-introduction of Tigo Nivushe in partnership with Absa Bank and JUMO positions Tigo Pesa as an innovative financial service provider in the country while conversely supporting the government efforts to reduce financial services gap, especially in the micro-lending sector.

Tigo Nivushe mobile lending product was first launched in 2015, in partnership with JUMO, to make credit available to small/micro businesses and consumers who had never had access before or had experienced difficulties in accessing formal credit.

This partnership implies that Tigo Pesa eligible customers will have access to more funds in the future. Customers registered and active on Tigo Pesa can borrow amounts ranging from 2,000/- to 1m/-, depending on requirements and eligibility, for a loan term of 7-30 days.

The amount eligible customers can borrow over time can increase over time. This depends on how frequently they use the services and also repay the amount borrowed.

Speaking at the launch event, Absa Bank Tanzania's Director of Finance (CFO), Obedi Laiser, said, "We are a pan-African bank with a global reach, entrenched in playing a shaping role in society while ensuring we bring possibilities to life for our customers.

By growing digital banking initiatives and mobile technology integrations in Tanzania and globally, we believe our investment in innovations and partnerships continue to be critical in our existing markets, such as Tanzania, and as a commercial bank," he said.

He added that their products and services speak well to their commitment to serving Tanzanians better. He said that they recently landed digital channel platforms with payment capabilities ranging from account-to-account transfers, bank to MNOs transfers, government bill payment services, etc.

"We're excited about growing this proven product as we want more people in Tanzania to have access to quality financial choices," said JUMO's Africa Chief Executive Officer, Buhle Goslar. He said this collaboration in a dynamic market deepens their work with partners to create positive outcomes for all parties, especially customers.

Tanzania in focus

GDP: $62.41 billion in 2020 compared to $61.137 billion dollars in 2019

Population: 59,734,213 in 2020 compared to 58,005,461 in 2019

GDP per capita: $1,076 in 2020 compared to $1,085 in 2019