MTN Uganda inks cross border Mobile money remittance deal with Vodacom Tanzania

The various representatives after launching the money remittance platform between MTN and Vodacom custiomers in Uganda and Tanzania (PHOTO/Abraham Mutalyebwa)

KAMPALA – MTN Uganda announced an international remittance deal with Vodacom Tanzania, a move designed to capitalise on growth in trade and money transfers being made between the neighbouring countries.

Under the agreement, customers of either operator’s mobile money service can transfer funds directly to each other.

Mr. Ali Monzer, the General Manager Mobile Financial Services at MTN Uganda contented that regional remittance service is an important part of the compony’s mobile financial services strategy to increase financial inclusion for all using mobile technologies, and reduces the cost of transferring money between countries.

“The ability to transfer money easily and cheaply in the region is already revolutionising the lives of many of our customers. As with the Tigo in Tanzania, MTN Rwanda, Eco Cash Burundi and Safaricom in Kenya, the Vodacom Tanzania addition will not only enhance family connections but will also facilitate more trade and business partnerships on a regional scale,” Monzer asserted.

On the other side, Mr. Epimack Mbeteni, Vodacom M-Pesa director in Tanzania said existing statistics show that in 2015 the value of trade between Tanzania and Uganda was over Tsh 178 billion and increased to over 350 Billion in 2018, adding that although the amounts of money sent between Tanzania and Uganda through formal money transfer is large but it is estimated that more than twice that amount has been sent through informal money transfers channels including bus drivers and bus attendants or using relatives and friends traveling.

In a statement, Vodacom Tanzania m-Pesa director Epimack Mbeteni estimated trade value between the countries in 2015 was TZS178 billion ($77.1 million) and surged to TZS350 billion in 2018.

He claimed informal methods to transfer money could total more than double the 2018 figure.

“We have seen the difficulty our customers face when transacting between neighbouring countries and we have brought a solution through this service which is convenient, reliable and faster. There is no reason for our customers to send money through bus drivers or conductors and other insecure channels”.

MTN Uganda hailed the impact of partnerships with other operators since launching its mobile money service in 2015. Previously the Ugandan operator inked international deals with operators in Kenya, Rwanda, and Burundi.