WHAT COULD MEAN FOR BANKS ON NEW MOBILE MONEY CHARGES.
The question is whether this will ultimately make commercial banks the winner.
Analysts hold diverse opinions about the possible impact of the change on banks – given the fact that they, too, have integrated their services with mobile money services.
“Obviously, many will go back to using their banks through Sim banking. But, remember: there are only 17-20 percent of Tanzanians who have access to banks. So my guess is that a majority will even use ‘motorcycle taxis’ to take money from one place to another,” said Prof Delphin Rwegasira.
“This should have been done gradually not in one go as it has been done and it is in danger of destroying the mobile money normality as more people will go for a cheaper mode of transferring their cash even if it means staying in queues for hours,” said Prof Samuel Wangwe.
“Even before the new levies, mobile money transactions were costly compared to banks,” said Abel Kinyondo.
The government plans to collect Sh1.254 trillion for the 2021/2022 financial year through the mobile phone-related charges.
SOURCE: THE CITIZEN.