The November resumption of talks between Tanzania’s government and multinational corporates, on plans to develop the country’s $30bn liquefied ... natural gas (LNG) reserves, has triggered optimism that progress may finally be in sight.
The company is in the process of meeting Uganda’s legal and compliance requirements, Mulei says, and plans to launch in the country in December or January. Operations in Rwanda are planned for the second quarter of 2022, and Tanzania for the fourth quarter.
Agency banking is a way to avoid the cost for banks of setting up new branches by allowing services to be provided by a trusted agent such as a local shopkeeper. Mulei says agency start-up costs, including buying a point-of-sale (POS) device which costs about $1,400, are prohibitive for many. “Very few shops have that sort of money lying around.”
Banks may offer subsidies, but then face expensive long-term maintenance costs, he adds.