From Airtime to Banking: The Incredible Journey of Selcom Tanzania

Imagine a company starting out just by selling phone airtime and growing into a major player that helps millions of Tanzanians manage their money. That's the story of Selcom Tanzania! Founded way back in 2001, Selcom has become a leading fintech (financial technology) company in Tanzania, making a real difference in how people access and use financial services.  

How it All Began

Selcom started small in 2001, distributing prepaid airtime for the mobile network Celtel in Dar es Salaam. This initial focus helped them build a network and understand how mobile technology worked. But Selcom didn't stop there.  

Growing Bigger and Better

From 2008 onwards, Selcom started adding more services. They moved into helping shops (merchants) accept digital payments, offering agency banking (where local agents provide basic bank services), issuing payment cards, and supporting online shopping (e-commerce).  

A huge part of their growth came from building a massive network of agents called Selcom Huduma. Think of these agents like mini-bank branches spread all across the country. By 2017, Selcom Huduma had over 25,000 agents, making it the largest network of its kind in Tanzania. These agents help people, especially in areas far from traditional banks, to deposit cash, withdraw money, and check their balances. This has been incredibly important for bringing more Tanzanians into the formal financial system.  

Selcom also partnered with over 40 banks in Tanzania, linking their payment systems together. This means more people can use Selcom's services easily through their existing bank accounts. They also launched innovative products, like a virtual Mastercard with Tigo Pesa, allowing people to shop online globally.  

Making Big Moves: Buying a Bank!

One of the most exciting recent steps for Selcom was acquiring Access Microfinance Bank in June 2024. The bank was then renamed Selcom Microfinance Bank Tanzania Limited. This was a game-changer! It means Selcom can now offer even more financial services directly, like loans (micro-loans up to TZS 35 million, agro-loans up to TZS 50 million, and larger SME loans), savings accounts, insurance, and more. They plan to significantly increase the bank's capital from TSh 8.9 billion to TSh 20 billion in the coming years, showing their commitment to growth.  

Selcom Pesa: Making Transactions Cheaper

In early 2025, Selcom launched Selcom Pesa, a new platform designed to offer the lowest transaction fees in Tanzania. Think sending money to friends, paying bills, or paying the government – Selcom Pesa aims to make it super affordable. They even connected it to the Tanzania Instant Payment System (TIPS), allowing for free money transfers between connected accounts. To encourage people to try it, they launched a campaign where customers could make five transactions daily for just 500 Shillings!  

Selcom's Impact Today

Selcom's numbers speak for themselves:

• Over 100,000 merchants use their payment systems.  
• Over 25,000 Selcom Huduma agents provide financial access across Tanzania. These agents also create jobs and empower local entrepreneurs.  
• They process over $1.5 billion in transactions every year.  
• They partner with over 40 banks.  

Beyond the numbers, Selcom is helping to modernize Tanzania's economy by making digital payments easier and more common. They are also making it easier for Tanzanians abroad to send money home through partnerships like the one with Nala.  

What's Next?

Selcom has come a long way, transforming from a simple airtime seller into a major fintech and banking force. They face competition from mobile money giants like M-Pesa and Airtel Money, as well as other growing FinTechs. However, their wide range of services, huge agent network, focus on low costs with Selcom Pesa, and now their own bank gives them a strong position. Selcom Tanzania looks set to continue playing a vital role in making financial services accessible and affordable for everyone in Tanzania.