This archive report was first published on 19 July 2019.
On July 19, 2019, Vodacom Tanzania unveiled a mobile-based overdraft facility called Songesha, a service that shares similar features to Safaricom's Fuliza, the world's first mobile overdraft service launched in January 2019.
The new service allows Mpesa users in Tanzania to complete their Mpesa transactions even with insufficient funds in their accounts. According to Epimack Mbeteni, Vodacom's director of M-Commerce, the firm introduced Songesha after observing that most Mpesa users failed to complete mobile-based transactions due to a shortage of funds.
Partnering with TPB bank, Vodacom aims to provide the overdraft service to its customers. The introduction of Songesha in Tanzania is an indication of its successful launch in Kenya, where Fuliza attracted over 4 million users and disbursed more than KSh6.2 billion in the first month of operating.
