Tigo subscribers in Rwanda and the Democratic Republic of Congo can now send money between the two countries using Tigo Cash, Tigo’s mobile money solution.
Tigo Rwanda and Tigo DRC – both subsidiaries of Millicom – partnered to enable the transfers in addition to similar service launched between Tigo Rwanda and Tigo Tanzania in 2014.
At the time, the Tanzania / Rwanda cross border mobile money transfer channel was the first of its kind with integrated currency conversion in Africa, according to the news release to TechCabal.
“We know that cross border business between the DRC and Rwanda is an important factor in the economic health of DRC’s eastern region. Considering that some cities such as Rutshuru, Masisi, Mulenge, etc. do not have access to money transfer agencies, we are therefore facilitating their day to day commercial activities by providing them an easy, safe and quick way to send and receive money,” Uche Ofodile, Chief Executive Officer, Tigo DRC said.
Mobile money has a good outlook in Rwanda where more than 6.7 million mobile money accounts transacted about $800 million between January and June 2015. To send money from Rwanda to DRC using Tigo Cash, users are required to dial *200*6# and follow the instructions.
It’s not stated what the transfer charges will be Tigo Cash cross border service, compared to alternatives like Western Union and MoneyGram, but it’s expected it will be lesser. Else there is no point really. Remittance charges on these alternative services have been known to be as high as 20% per transaction (like transfers between Nigeria and Ghana on Western Union). A reduced remittance charge will of course, make sure that the bulk of money sent between the countries is not lost in transit.