Digital Lender Tala closing operations in Tanzania
Mobile loan app Tala has announced that it is shutting down its operations in Tanzania. In an instagram post, the company regretted that it had ceased offering loans in Tanzania. Confirming the post, Tala explained that they could not divulge their reasons for closing shop in Tanzania for legal reasons, The company urged Tanzanian customers with outstanding loans to repay them.
Tala operates in several global South countries. It offers micro loans on mobile phones to individuals and small businesses after determining their creditworthiness through artificial intelligence. Its largest market is Kenya where it has about 2.5 million customers. It also operates in the Philippines and Mexico. Earlier this year, some of the firm’s executives were charged for economic crimes at a Dar-es-Salaam court. They were accused of causing the government a loss of Tsh5.8 billion ($2.5 million) in fraudulent use of their networks.