Tala Pulls Out of the Tanzania Market

Tala Pulls Out of the Tanzania Market

Tala, a fintech lender that offers small loans to millions of people in emerging markets, has stopped giving credit to its Tanzania customers after it was charged with economic crimes in Dar es Salaam.

“We regret to inform you that Tala is no longer offering loans in Tanzania. We thank you for giving us a chance to serve you and wishing our customers success,” Tala said in a Tweet.

In April, according to The East African, the Vodacom managing director and Tala business operations manager were charged alongside six other company staff with causing the government the loss of Tsh5.8 billion ($2.5 million) in the fraudulent use of their networks.

Kenya remains Tala’s biggest market and has over 2.5 million customers. The company now has operations in Mexico and the Philippines.

However, Tala Kenya refuted claims that Tala Tanzania has permanently closed its operation.

“Tala Tanzania has not made a decision to permanently close operations. However, after piloting our credit product in Tanzania, we have paused our lending operations and are undertaking a review of our operations to determine our path forward in the market,” Tala Kenya said in a statement.