Tanzania: Mobile Lending App TALA Shuts Down Operations in Tanzania

Dar es Salaam — A US-based company TALA-an operator of the Mobile lending app Tala has officially announced to shut down its operations in Tanzania, saying they will issue a statement in the near future to explain.

The technology-driven company which currently operates in Kenya, Mexico, India and Philippines provides fast, personalized loans to approved borrowers mainly self-employed as no collateral is required-attracting over 27 million people around the globe.

"We regret to inform you that Tala is currently not offering loans in Tanzania. We appreciate the opportunity to serve you, and we wish our loyal customers continued success in your financial journeys," reads a statement issued by the company.

In the chat-based interview with The Citizen through Tala's official Facebook page on Tuesday, September 17, the company's official who introduced himself by a single name 'Kelly' said, "Yes, we are no longer offering loans in Tanzania. Unfortunately, due to legal reasons, we cannot divulge any more information other than what was communicated on social media."

Furthermore, the company's management in its statement has urged its customers with outstanding balances to make repayment as indicated in the system.

The report further indicates that in East Africa, 78 per cent of loans are used for business purposes, with the majority of customers being self-employed: 32 per cent female and male (68) aged below 34.

How it started?

Tala Mkopo was founded by Shivani Siroya who doubles as the company's CEO.

The idea of Tala Mkopo was conceived when Shivani worked with the UN Fund for Population in Sub-Saharan Africa.

Her research centred on microfinance solutions, established that small-time business owners stagnated due to lack of credit.

She had interviews with 3,500 individuals and that's how Tala Mkopo was borne. With her savings, US$30,000 she risked establishing the technology-driven company.

In 2011 the app was unveiled, with 100 customers downloading the app on the first week. The popularity of the instant loan has since grown as no collateral is needed-attracting millions of people in the globe with the majority being repeat customers.

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