MIGA to Boost Mobile Money Services in Tanzania

WASHINGTON, October 18, 2024 – The Multilateral Investment Guarantee Agency (MIGA), part of World Bank Group Guarantees, has issued a guarantee to The Rise Fund II Aurora S.à r.l. (The Rise Fund) for its investment into Airtel Money Tanzania. This guarantee is part of a broader commitment of $180 million to support Airtel Money projects across the continent, providing coverage against the risks of war and civil disturbance, expropriation, and transfer restriction for up to 3.2 years. 

The project is the latest addition to the agreements signed in June 2022, which supported investments in 12 Airtel Money companies across Sub-Saharan Africa. Notably, this project represents MIGA’s first contract signed in Tanzania since 2014 and demonstrates MIGA’s commitment to fostering financial inclusion in Sub-Saharan Africa. 

“MIGA is pleased to support investments in mobile money services that increase financial inclusion in Tanzania,” said Hiroshi Matano, Executive Vice President of MIGA. “Our guarantees will help ensure that Airtel Money continues to offer essential financial services to underserved populations, contributing to greater financial stability and inclusion across the country.” 

Tanzania, the largest mobile money market in Africa, is emerging as a major hub for digital financial services. The country’s mobile money market reached $62 billion in 2022, accounting for 11% of the African market. By 2028, the market is expected to grow significantly. However, only 44.35 million out of 61.9 million mobile phone users are enrolled in mobile money services, leaving significant room for growth. 

“With support from MIGA, we can continue to invest in underserved markets like Tanzania with greater confidence. MIGA guarantees have proven to be successful mechanisms for allowing Airtel Money services to reach more users, from the busiest hubs to the most remote corners of the continent. Existing Airtel Money customers in Tanzania will benefit significantly from MIGA’s latest guarantee and we expect it to serve as an important differentiating factor for prospective new users,” said Yemi Lalude, Partner and Head of Africa & the Middle East for The Rise Funds.   

Airtel Money Tanzania plays a crucial role in this market, providing mobile money services that enable consumers to save, transfer, and manage funds securely. The mobile money service is particularly significant for low-income and rural populations, who benefit from lower transaction costs and increased financial accessibility. 

About The Rise Funds 

The Rise Funds are a core pillar of TPG Rise, TPG's global impact investing platform. Founded in 2016 by TPG in partnership with Bono and Jeff Skoll, The Rise Funds invest behind impact entrepreneurs and growth-stage, high potential, mission-driven companies that are focused on achieving the United Nations' Sustainable Development Goals. The Rise Funds deliver capabilities and expertise across a wide variety of sectors and countries at scale, focusing on opportunities in climate and conservation, education, food and agriculture, financial inclusion, healthcare, and impact services.  

With approximately $19 billion in assets across The Rise Funds, TPG Rise Climate, and the Evercare Health Fund, the TPG Rise platform is one of the world's largest private markets impact investing platforms committed to achieving measurable, positive social and environmental outcomes alongside competitive financial returns. 

For more information, visit therisefund.com. 

About Airtel Africa 

Airtel Africa, the parent group of Airtel Money Tanzania, officially began operations in the cellular phone market in Tanzania in October 2001. Airtel Africa offers many unique services in addition to the traditional calling and texting services, such as mobile internet, prepaid and postpaid roaming, and mobile money. Airtel Money Tanzania was officially incorporated in 2016. Since the incorporation of the company, AM Tanzania’s revenues have increased steadily, reaching $91.1 million in 2022. AM Tanzania’s mobile phone (Global System for Mobile communication, GSM) subscribers and its mobile money subscribers reached 15.0 million and 7.7 million, respectively. 

About World Bank Group Guarantees   

Initiated in 2024, World Bank Group Guarantees consolidates all guarantee products and experts from across the World Bank Group institutions at MIGA. It provides a simplified and comprehensive menu of guarantee solutions, enabling clients to select the instrument that best suits their needs. The platform streamlines processes, removes redundancies, and provides greater accessibility by de-risking investments in developing countries. Its goal is to boost the WBG’s annual guarantee issuance to $20 billion by 2030.   

For more information about the guarantee platform, please visit: https://www.worldbank.org/wbgguarantees   

Stay updated and follow us at https://twitter.com/MIGA and https://www.linkedin.com/company/wb-miga     

Contact:  

In Washington:  Elizabeth Howton, (202) 458-5922, ehowton@worldbankgroup.org