Tanzania’s Digital Finance Evolution: From Access to Application

Tanzania has achieved what many nations aspire to—integrating digital finance into daily life. Across urban centers, rural communities, and the islands of Zanzibar, mobile phones are routinely used for payments, transfers, and business transactions.

Economic Context

With a projected GDP approaching $95 billion (approximately $1,360 per person) in 2024, Tanzania’s economy is diversifying beyond agriculture and mining. Major institutions like CRDB Bank, NMB Bank, and National Bank of Commerce play key roles.

Mobile Money Foundation

Early success was built on mobile wallets such as M-Pesa, Mixx by Yas, Airtel Money, HaloPesa, and AzamPesa—particularly crucial in rural areas where traditional banking infrastructure is limited. By the end of 2023, Tanzania had roughly 75.8 million active mobile-money subscriptions.

Addressing Fragmentation

The Tanzania Instant Payment System (TIPS), developed by the Bank of Tanzania, connects various financial providers through a common real-time platform. This enables seamless transfers between networks and reduces friction for users.

Beyond Basic Access

While 89% of Tanzanian adults now have access to formal financial services (up from 65% in 2017), the focus is shifting toward more meaningful usage. The next phase involves helping customers utilize digital tools for savings, insurance, credit, and other value-added applications.

Business Infrastructure Emerges

Fintech companies like AzamPay, Selcom, and ClickPesa are providing payment gateways, merchant services, and APIs that enable businesses—especially SMEs—to accept digital payments without building complex infrastructure themselves.