Tigo - A Payment Solution for Agriculture
Tigo Rwanda, a subsidiary of Millicom, is a Swedish company dedicated in exploring Rwanda’s digital space and capabilities. Tigo’s newest invention aims to include over 10,000 tea farmers located in Mulindi and Rusizi district. This payment solution improve payment collection for local farmers.
The process is simple: all farmers have to do is open an account at Sacco bank. Tigo has integrated their solution to the farmers banking platform and allows farmers to send and receive money on their mobile phones. An SMS notification is sent to the farmer notifying them that they received money and are able to collect them at any Tigo cash agent.
Before Tigo’s payment solution, farmers would had to wake before sunrise and rush to their nearest Sacco bank branch and stand in line for hours. This tiresome activity was repeated by 10,000 farmers daily.
While implementation of the payment solution was straightforward enough, Tigo and Sacco bank quickly faced a dilemma: over 7,000 farmers cannot afford a handset. Tigo realized that by supplying customers with a free handset, customers can access the payment solution, while Tigo benefits from the reduced costs.
Today, Tigo cash can reach remote farmers all over Rwanda in a way no other form of communication can. This helps farmers be more efficient and productive throughout their day.
Jean Philbert Nsengimana, Minister of Youth, Information, and Communications Technology in Rwanda recently stated that that Tigo cash is a win-win for banks, citizens, and most importantly it shows the importance of innovation as the needs of the country are pressing.