EXPERTS TANZANIA Why Vodacom mobile money users shun it 4 weeks ago Samuel Post Views: 95 Tanzania’s mobile phone operator Vodacom lost Tsh103.8 billion ($44.34 million) worth of revenues after 1.3 million customers dropped mobile money services due to a levy imposed by the government in July last year. The telco, which is listed on the Dar es Salaam Stock Exchange (DSE), disclosed through its latest annual report (2022) that the levies significantly increased the cost of mobile money transactions. Its M-Pesa revenues for the 12 months to March 31 dropped by 7.6 percent to Tsh329.6 billion ($140.8 million) as a result of the contentious levy, according to the report. “While the impact of the levy is difficult to dismiss, we are encouraged with an increasingly open-door attitude from the government, with respect to this matter,” – says Group chairman Justice (Rtd) Thomas Mihayo. “We remain optimistic that together with the government, we will find solutions that will progress further realisation of benefits that technology can deliver to the country and financial inclusion. The introduction of mobile money levy in the year was an unfortunate development for financial inclusion in Tanzania.” In June last year, the Tanzanian government amended the Electronic and Postal Communication Act and imposed a levy of between Tsh10 ($0.004) and Tsh10, 000 ($4.27) on mobile money transactions, depending on the amount sent and withdrawn. However, following a public outcry, the levy which became effective on July 15, 2021 was reduced by 30 percent in September 2021 and a further 43 percent from July 1, translating into a total reduction of 60 percent since the charge was introduced. “The decision will reduce the end-user charges. We believe by unlocking the growth potential in M-Pesa we can meaningfully address financial inclusion,” – says Hilda Bujiku, the telco’s acting managing director. According to GSMA, the average transaction fee increased from three percent to 369 percent depending on the transaction, following the introduction of the new mobile money levy. For example, the average fee for a transfer between Tsh40,000($17.08) and Tsh49,999 ($21.36) increased by 369 percent from Tsh407($0.17) to Tsh1,907 ($0.81). The new levy applies in addition to value added tax of 18 percent and excise duty on mobile money transfer and withdrawal fees of 10 percent making mobile money transactions in Tanzania very expensive compared to other East African countries. GSMA, the global mobile phone operator lobby group through a report titled “Tanzania Mobile Money Levy Impact Analysis” dated March 2022, shows that mobile money transactions became more expensive in Tanzania on account of the new levy. Source: theeastafrican.co.ke About Post Author Samuel I am a journalist specializing in gambling in Africa and around the world. I am particularly interested in stories about games and casinos. See author's posts SamuelI am a journalist specializing in gambling in Africa and around the world. I am particularly interested in stories about games and casinos. Facebook Twitter LinkedIn Email Print Tags: mobile money, Tanzania, Vodacom Continue Reading Previous 5 things South Africa must do to beat cybercrimeNext African countries with the highest number of software developers More Stories EXPERTS NIGERIA World Bank proposes gambling, betting tax to grow revenue 7 hours ago Samuel EXPERTS NIGERIA Do Big Wins Cause Gambling Addiction? 7 hours ago Szarlot EXPERTS WORLD NEWS Schmalzer heads sales at Novomatic 4 days ago Iwo Bulski EXPERTS UGANDA Tackling dangers of gaming is top priority 4 days ago Iwo Bulski EXPERTS KENYA Ruto pledges wealth tax on tycoons to fix Kenya’s budget 4 days ago Szarlot EXPERTS The Good, the Bad, and the Ugly 4 days ago Szarlot EXPERTS KENYA Report Reveals Sectors With Highest Digital Fraud Rate in Kenya 1 week ago Samuel EXPERTS NIGERIA The new frontier – why Africa should not be undervalued or underestimated 1 week ago Samuel EXPERTS HOT NEWS SOUTH AFRICA MTN is currently constructing 5G private networks for use in South Africa 2 weeks ago Szarlot EXPERTS GHANA Africa Bitcoin Conference launches maiden ABC hackathon 2 weeks ago Samuel ONLINE TANZANIA Vodafone invests $15m to help curb maternal mortality in Africa 2 weeks ago Szarlot EXPERTS NIGERIA African crypto exchange Yellow Card lands $40m Series B 2 weeks ago Samuel Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Save my name, email, and website in this browser for the next time I comment. Δ This site uses Akismet to reduce spam. Learn how your comment data is processed.