RUAHA CATHOLIC UNIVERSITY

The purpose of this study was to investigate the effects of mobile money levy on the performance of mobile money agents in Tanzania taking evidence from mobile money agents in Iringa Municipality. Specifically, the objectives of the study were: to examine the effect of number of transactions on the performance of mobile money agents; to determine the effect on value of transactions on the performance mobile money agents and to analyze the effect of commission on the performance of mobile money agents. Simple random sampling was used to select 95 mobile money agents in Iringa Municipality. Questionnaire was used as the tool for data collection. Data was analyzed using descriptive and inferential statistics with the help of the Statistical Package for Social Sciences (SPSS) Version 20. The results of the study revealed that, reduction in number of transactions had significant effect on performance of mobile money agents. This is confirmed by 83.9% of the respondents who agreed that introduction of levy had resulted in the reduction in number of transactions which in turn has negatively affected their overall performance. Furthermore, 79.5% of the respondents agreed that mobile money levy effect on value of transactions affected the performance of mobile money agents. Moreover, analysis of the results revealed that commission had significant negative effect on performance of mobile money agents. The study recommends that the government of Tanzania reduce mobile money taxes to stimulate usage of mobile money services which will in turn increase agent network in order to promote financial inclusion and financial depth. It is further recommended that the government review its tax policies in order to avoid policies that constraint financial sector growth and limit employment.

Effects, Mobile Money Levy, Mobile Money Agents, Performance