Tanzania's digital finance sector witnesses a surge with mobile transactions reaching an unprecedented TZS 198.9 trillion.
Tanzania's Financial Sector Embraces Digital Transformation in 2024
Tanzania's financial sector underwent a significant transformation in 2024, marked by a surge in digital payments, enhanced cybersecurity measures, and improved financial inclusion.
Mobile money transactions in Tanzania increased by 28.5 percent, with the value of real-time digital payments more than doubling to TSh29.9 trillion (approximately $11.6 billion). This growth was facilitated by the Tanzania Instant Payment System (TIPS), which processed 454 million transactions in 2024, nearly double the prior year's volume.
A major milestone was the launch of the Integrated Core Banking System (iCBS) by the Bank of Tanzania (BoT) in October 2024. Locally developed, iCBS is the first of its kind created by an African central bank. It integrates 898 financial networks, enhances transparency, automates clearing and data analysis, and supports real-time payments. The system also strengthens cybersecurity measures, safeguarding the platform from hacking and fraud risks.
Tanzania's approach to digital payments favours a centralized, interoperable system managed by the BoT, distinct from Kenya’s market-driven mobile money dominance. This unified infrastructure promotes smoother fund transfers among banks, mobile wallets, and financial institutions, fostering financial inclusion especially for underserved communities.
In addition to mobile payments, internet banking transactions expanded by 35.8 percent in 2024. The nationwide 5G rollout reached 20 percent of the population, bolstering fintech app performance.
Regulators in Tanzania are tightening oversight and aligning policies with international standards to mitigate digital threats. New frameworks were rolled out to regulate transaction fees for non-bank payment providers. Tanzania's payment systems maintained 99.85 percent uptime in 2024, benefitting from the migration to SWIFT ISO20022 standards and the rollout of QR code interoperability (TANQR).
However, the report highlighted rising cybersecurity risks, including internet-based financial fraud and pyramid schemes. To combat these threats, the Bank of Tanzania introduced guidelines to enhance cybersecurity resilience among cooperative financial institutions. The Bank also completed development of a Financial Complaints Resolution System that integrates USSD and AI.
Mobile penetration in Tanzania reached 98.2 percent in 2024, with 63.2 million SIM cards enabled for mobile money. Smartphone usage in Tanzania grew by 18 percent in 2024, providing more citizens access to digital services.
The Tanzania Financial Inclusion Index (TanFix) rose to 0.81 in 2024 from 0.79 in 2023, reflecting the sector's efforts to expand access. With these developments, Tanzania positions itself as a leader in digital finance innovation within East Africa, improving efficiency, transparency, and inclusion across the financial sector.
References: [1] Bank of Tanzania (2025). Annual Report 2024. Dar es Salaam: Bank of Tanzania. [2] Bank of Tanzania (2024). Press Release: Integrated Core Banking System (iCBS) Launch. Dar es Salaam: Bank of Tanzania. [3] World Bank (2025). Tanzania Digital Finance Landscape Assessment. Washington, D.C.: World Bank. [4] Consultative Group to Assist the Poor (CGAP) (2025). Tanzania Mobile Money Agent Network Expansion. Washington, D.C.: CGAP. [5] GSMA (2025). Mobile Economy Tanzania 2025. London: GSMA.
- In 2024, Tanzania's financial sector embraced digital transformation, with fintech, technology, and cybersecurity playing crucial roles, particularly in enhancing mobile payments, internet banking, and cybersecurity measures.
- The launch of the Integrated Core Banking System (iCBS) by the Bank of Tanzania (BoT) in October 2024 marked a significant milestone in the digital transformation, integrating 898 financial networks, strengthening cybersecurity, and fostering financial inclusion.
- The surge in mobile money transactions in Tanzania, accompanied by the growth in smartphone usage and mobile penetration, was largely facilitated by the Tanzania Instant Payment System (TIPS) and the nationwide 5G rollout.
- Regulatory bodies in Tanzania are working diligently to address digital threats, aligning policies with international standards, regulating non-bank payment providers, and launching initiatives like the Financial Complaints Resolution System that integrates USSD and AI.
- The TanFix index rose to 0.81 in 2024, reflecting the sector's efforts to expand access to finance, positioning Tanzania as a leader in digital finance innovation within East Africa, improving efficiency, transparency, and inclusion across the financial sector.
