Beyond Digital Financial Services: Exploring Mobile Money Agents in Tanzania as General ICT Intermediaries

Abstract

Tanzanian mobile money and telecom agents (called wakala(s) in Swahili) have played a crucial role in expanding digital financial services (DFS) to rural areas. However, wakalas are losing their ability to financially sustain themselves providing intermediation services that their communities require. This work explores the potential for the wakala network to extend intermediation services to emerging ICTs beyond the scope of commercial DFS by uncovering the social and institutional factors that currently shape wakala practices. First, we investigate how two different models of intermediation from ICTD literature can inform broader strategies for intermediation through human infrastructures. We then complement this analysis with an on-the-ground quantitative survey and focus groups with community members and wakalas in Kagera, Tanzania. Our focus groups reveal that community members face challenges with new ICTs that require sustained intermediation and that wakalas encounter mounting financial instability and are thus receptive to intermediating for other ICTs. Finally, we present three factors that influence the broadening of the wakalas’ role of general ICT intermediaries: (1) aligning incentives and addressing the limits of pro bono actions, (2) providing appropriate training and a suitable support infrastructure, and (3) fostering trust-building and reciprocity.