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Tanzania moving toward a cashless economy

Tanzania has proven to have an appetite for digital payment, primarily through mobile. The mobile money penetration reached 53% with more than 29M mobile money subscriptions in the year 2020. The market is expected to reach $216.4B by 2024.  

Tanzanians enjoy a variety of services when it comes to mobile payment providers. There are six such services in the country.

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People are already benefiting from digital money as they can pay more conveniently, quickly and securely. There has been a massive surge in the value of mobile payments across the country. 

“Around Sh18 trillion ($163B) is transacted every month on mobile money platforms in Tanzania,” said Dr Faustine Ndugulile, the Minister of Communication and Information Technology, Tanzania. He also added that around 300 million transactions are being made every month, making a monthly earning of Sh80 billion in fees and taxes for the government. 

According to TCRA, a total of 299.26 million mobile money transactions were conducted in September 2020. The huge rise in the number of transactions also implies an increase in value. As per their data, the amount transacted through mobile wallets has increased by 56% during the past three months.

At Wakandi, we believe that digital is the future of payments. That is why we have developed a digital solution called CAMS that can be used by thousands of SACCOs in Tanzania. It is an app that enables managing loans and savings in an effective way. Users can send their contributions and avail loans online through their preferred mobile wallet. 

Read more about CAMS here

Dr Ndugulile’s remarks indicate a massive growth in mobile money transactions in Tanzania. The numbers have risen significantly during the past few months as people continue to adopt mobile payments and cashless transactions. Analysts also say that the vast amount involved in mobile money transactions indicates Tanzania’s economy moving to a cashless or at least less cash economy.

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