Vodacom Tanzania Foundation facilitates safe saving

By Our Correspondent

The inception of mobile money in countries like Tanzania where the practice of saving money in financial institutions is marred by several challenges which has resulted into remarkable transition on saving habits of Tanzanians.

Despite the mushrooming of financial institutions and efforts to address barriers to saving that hinder many ordinary Tanzanians to open bank accounts. People with medium or low incomes prefer using mobile money technology platform to save. The use of M-Pesa and M-Pawa platforms has proved to be the most convenient and secure mode of saving and transacting money for many Tanzanians.

Statistics show that the majority of Tanzanians, especially rural dwellers who account for 74 percent of the population, opt for mobile money as their primary money saving platform. According to the Women’s World Banking report, approximately 35 percent of households in Tanzania rely on mobile money to send, receive and transact money.

Vodacom, being the pioneer of mobile money technology in the country, boasts over 7 million of its customers through its M-Pesa platform. The giant telecommunication company has the widest network coverage whereby 90% of the population is covered. It’s a one stop for communications solutions for both fixed and mobile connectivity.

Considering the fact that the rural populace accounts for the highest percentage of the unbanked, Vodacom’s M-Pesa is no doubt providing financial inclusion solution to the majority of Tanzanians.

Vodacom Tanzania has and still is playing a big role in facilitation of financial inclusion in the country. Products such as M-Pawa – a platform that allows M-Pesa users to save money, earn interest and acquire affordable loans from a financial institution, is empowering ordinary Tanzanians and transforming lives of many for the better. To date M-Pawa has over 4.8 million users.

This is also harnessed by Vodacom Tanzania Foundation, which has invested on a financial inclusion project that aimed to empower women socially and economically through Safe Cash Storage program. Safe Cash Storage program along with the implementing partner – Catholic Relief Services (CRS), trained women in Savings Internal Lending Communities (SILC) on financial literacy and management, sexual reproductive health, family planning and the use of M-Pesa and M-Pawa to enable them save safely, connect directly to conventional banking, for opportunities to borrow with low interest rates and expand their business ventures.

The result has been; a total of 3,000 people have benefited, majority being women in SILC as beneficiaries have adopted to safe cash storage by saving money in their M-Pawa accounts creating space for security of money, improved members relationships through transparency of M-Pawa and M-Pesa transaction record keeping which has strengthened trust and good governance among members. Saving on M-Pawa has opened the groups and communities to business advancement and opportunities.

“Vodacom Tanzania Foundation strives to socially and economically empower women in the informal sector especially through our M-Pesa and M-Pawa platforms. Our aim is to educate communities on financial literacy for their own development and that of business, but also facilitate regular income, access to health care and food security” said the Head of Vodacom Tanzania Foundation, Renatus Rwehikiza.