Tigo’s parent company Millicom has bought an 88 per cent stake in national payment switch, RSwitch.

 Formerly known as Simtel, RSwitch is Rwanda’s main provider of bank-to-bank payment switching services.

 It was started in 2002 and later restructured and rebranded in 2010 after African Development Corporation acquired a majority stake in it.

 Tigo announced yesterday that it has acquired the controlling stake owned by the Frankfurt-based African Development Corporation in RSwitch.

This acquisition, estimated to be at $6.5 million (Rwf 4.4 billion) is the first of its kind where a telecommunication and media company have merged with a national payment switch.

RSwitch holds one of the two switching licenses in Rwanda, which is a fast-growing market with increasing interoperability between mobile operators and banks.

According to a statement from the telecom firm, RSwitch has evolved to become an electronic payment service provider operating internationally with global standards.

"This acquisition will enable Tigo and Millicom become an even more dynamic financial provider,” said Tongai Maramba, general manager of Tigo Rwanda.

"As we move into an era where more and more money will be exchanged through mobile devices, we will be a catalyst for the coming innovation in the financial services sector,” he added.

Millicom International, listed on the Sweden Stock Exchange, provides mobile financial services to over seven million customers In Africa and Latin America.