Tanzania: Airtel Enhances Financial Inclusion Via Technology

AIRTEL Tanzania has said it is committed to enhance innovation and technology, particularly through Timiza Akiba platform to advance financial inclusion for all Tanzanians.

Airtel Money Director Isack Nchunda said in Dar es Salaam yesterday that Timiza Akiba enables

customers to save for a purpose while curtailing luxury spending.

"Timiza Akiba as savings product runs on mobile money and therefore deposits and withdrawals are made digitally and safely," he said.

Airtel Tanzania makes Timiza Akiba available to all Airtel Money customers through their mobile network and USSD functionality which works with any feature phone and doesn't require access to data. Letshego Bank Tanzania's Acting Chief Executive, Andrew Tarimo, said Letshego is committed to streamline and simplify access to financial solutions for emerging consumers across the country and mostly supporting customers through the current economic challenges as a result of the Covid-19 pandemic.

"Timiza Akiba's digital partnership is a secure and a rewarding way to save money for when you need it most," he said.

With total savings growing by more than 30 per cent in the last three months alone, Timiza Akiba is proving to be a safe and accessible option to help Tanzanians save their hard-earned cash simply, safely and easily, using their mobile phones.

Launched just under two years ago, through a partnership with Airtel, Letshego Bank Tanzania and financial technology company Jumo, Timiza Akiba is Tanzania's first fee-free, interest-bearing mobile money savings account.

With the initial aim to drive a savings culture among the people of Tanzania and help them reach their business or personal financial goals, the dynamic partnership is showing signs of sustained success.

Timiza Akiba allows Airtel customers to set up a savings account and save any amount from 100/- up to 5m/- directly from their mobile phones, without having to handle cash or travel to a bank.

The funds are managed by Letshego Bank Tanzania and those customers who manage to avoid spending their savings, receive a monthly sum as a reward for their commitment towards reaching their financial buffer, or goal.

Timiza Akiba's reward is calculated as a percentage of total savings on a balance of any size, and supports national government mandates to encourage and support the growth and development of the local savings culture.

Withdrawals are, however, accessible and available at any time with no transaction costs, in the event of an unexpected expense or emergency.

Timiza Akiba's banking partner Letshego Bank Tanzania is a member of the 11-country strong pan-African Group, listed in Botswana and Namibia.

Jumo builds and operates short-term, structured and long-term financial products, such as Timiza Akiba for emerging markets.

"Our technology stack reduces unit economics on the delivery and administration of financial services so that partners can reach new markets and customers can access high value products," said Jumo's Africa Chief Executive Officer, Buhle Goslar.

"Our partnership with Airtel and Letshego Bank Tanzania has reduced the barriers to access to savings significantly and it's encouraging to see how Timiza Akiba has grown, especially in recent months," he said.