Last week, Tigo announced that its parent company Millicom acquired the controlling stake of RSwitch owned by the Frankfurt-based African Development Corporation AG. RSwitch is Rwanda’s main provider of bank-to-bank payment switching services.
This acquisition is a world first, where a telecommunication and media company comes together with a national payment switch.
RSwitch holds one of the two switching licenses in Rwanda, which is a fast-growing market with increasing interoperability between mobile operators and traditional banking services. RSwitch has evolved to become an electronic payment service provider operating internationally with global standards.
Millicom, the international telecommunications and media Company listed in Sweden, provides Mobile Financial Services
(MFS) to over seven million customers In Africa and Latin America.
In February this year, Tigo launched the world’s first cross-border mobile money payment system with integrated currency conversion. The company’s commitment to innovation was underlined in March with the announcement of a new tech incubator, called “think”, to be opened by Millicom with Tigo in Kigali.
Tongai Maramba, the General Manager of Tigo, commented: “This acquisition will enable Tigo and Millicom to become an even more dynamic provider of financial services for the Rwandan market. As we move into an era where more and more money will be exchanged electronically and via mobile devices, we will be a catalyst for the coming innovation in the financial services sector.”