Tanzania: Launch of new mobile banking service M-Pawa
Commercial Bank of Africa and Vodacom have launched a new banking service in Tanzania that allows users to save and borrow money via mobile phone.Commercial Bank of Africa and Vodacom have launched a new banking service in Tanzania that allows users to save and borrow money via mobile phone.
M-Pawa was launched by Tanzania's President, Jakaya Kikwete on Wednesday (14 May) in Dar es Salaam. He said the service was a "highlight in the success made in the financial sector supported by investments in the telecommunications industry".
He applauded the initiative, saying it will help increase access to affordable financial services and further enhance Tanzania's financial inclusion agenda, the Guardian reports.
To access loans via mobile phone, Vodacom customers need
have used money transfer platform M-Pesa for at least six months.
Vodacom Tanzania's Managing Director, Rene Meza believes M-Pawa is easy to use since customers do not need to fill in an application form to open an account: "They simply have to access the M-Pesa menu on their phone and select M-Pawa(...) there are no limits on the frequency of withdrawals, minimum operating balances and charges on deposits and withdrawals from M-PESA to M-Pawa Account and vice versa," he said.
He added that Vodacom is optimistic that the service will grow in Tanzania due to various studies showing that most people want to save and grow their money but are unable to do so because they cannot meet the requirements of the formal banking sector. "M-Pawa is our answer to this need," he said.