Tanzania’s Digital Finance Surges as Mobile Transactions Hit Record TZS 198.9 Trillion
Regulators are tightening oversight and aligning policies with international standards to mitigate these threats as digital adoption accelerates.
Tanzania’s financial sector experienced a rapid digital transformation in 2024, marked by surging mobile money transactions, growing real-time payment infrastructure, and heightened regulatory focus on cybersecurity and inclusion. According to the Bank of Tanzania’s latest Financial Stability Report, mobile payment transactions climbed to TZS 198.9 trillion — a 28.5 percent increase from 2023 — while mobile banking transactions reached TZS 29.9 trillion, up 17.3 percent. The Tanzania Instant Payment System (TIPS) also nearly doubled its throughput, processing 454 million transactions worth TZS 29.9 trillion, significantly improving interoperability among banks and mobile money operators. Internet banking followed the same upward trajectory, with transaction values expanding by 35.8 percent to TZS 213.9 trillion, reflecting growing trust in digital channels.
Financial inclusion also advanced, supported by broader fintech adoption and mobile network coverage. The Tanzania Financial Inclusion Index (TanFix) rose to 0.81 from 0.79 in 2023, underpinned by the expansion of mobile money agent networks and the formalization of community microfinance groups. Mobile penetration reached 98.2 percent, with 63.2 million SIM cards enabled for mobile money, while smartphone usage grew 18 percent, providing more citizens access to digital services.
The regulatory environment evolved to match this rapid digitization. In 2024, the Bank of Tanzania issued 101 payment system licenses — 42 to banks and 59 to non-bank providers — as part of its broader push toward achieving a digital economy by 2025. It also introduced guidelines to enhance cybersecurity resilience among cooperative financial institutions, requiring comprehensive policies on information security, vendor management, and incident response. New frameworks were rolled out to regulate transaction fees for non-bank payment providers, aiming to ensure affordability and strengthen consumer trust in digital services.
Technology also underpinned new consumer protection initiatives. The Bank completed development of a Financial Complaints Resolution System that integrates USSD and AI to streamline dispute resolution and address concerns about unlicensed digital lenders. At the same time, Tanzania’s payment systems maintained 99.85 percent uptime, benefitting from the migration to SWIFT ISO20022 standards and the rollout of QR code interoperability (TANQR) for seamless retail transactions. The nationwide 5G rollout, which reached 20 percent of the population, further bolstered fintech app performance and enabled high-speed, low-latency financial transactions.
Despite these gains, the report highlighted rising cybersecurity risks, including internet-based financial fraud and pyramid schemes. Regulators are tightening oversight and aligning policies with international standards to mitigate these threats as digital adoption accelerates. Overall, Tanzania’s financial sector enters 2025 with strengthened digital infrastructure, expanding access, and a clear regulatory agenda to foster innovation while safeguarding stability.
