Dar Es Salaam — Finance and Economic Affairs Minister Mustafa Mkulo has commended MIC Tanzania Limited (Tigo) for introducing money transfer services "Tigo Pesa" but said the firm should maintain affordable tariffs and serve rural areas.

"The government supports telecom companies for delivery of such services and their contribution to the country's development," Mr Mkulo said when officially launching Tigo Pesa service in Dar es Salaam on Thursday.

The minister said telecommunication was among the fastest growing sub-sectors in the country. He said in 2009, the sub-sector grew at 20.5 per cent, compared to 20.4 per cent in 2007. "Such robust growth has been possible due to significant increase of providers of such services," the minister said.

According to the Tanzania Communication Regulatory Authority (TCRA), more than 15 million people in the country own mobile phones. The minister said much Tanzania was now boasting of increased teledensity, many people, especially those living in some remote rural areas do not have access to the facility.

On his part, Tigo General Manager Pablo Guardia assured the audience that attended the function that money transfer with the firm's mobile phone was fast, convenient and safe. He said Tigo was having extensive network of agents throughout the country.

"This will enable subscribers send money anywhere in the country. "Tigo Pesa will play an important role in decreasing the dependence on cash and moving towards a situation where consumers will be able to use their electronic accounts to mobilise cash, dispense it to their friends, relatives and business partners," he said.