Over the past five years (2020–2024), Tanzania’s ATM infrastructure expanded by 48.7%, increasing from 1,462 ATMs in 2020 to 2,174 ATMs in 2024. This growth supported a rise in ATM transactions, which peaked at 75 million in 2023 before declining by 5.63% in 2024 to 70.79 million. Similarly, the value of ATM transactions grew significantly, reaching TZS 13.9 trillion in 2023, but experienced a slight 0.77% decline in 2024. These trends indicate increased ATM accessibility but also suggest a possible shift towards digital and mobile banking solutions.

Tanzania's ATM infrastructure and usage have seen notable fluctuations from 2020 to 2024, reflecting shifts in banking behavior and digital payment trends.

• The number of ATMs increased from 1,462 in 2020 to 2,174 in 2024, a 48.7% growth over five years. The most significant increase occurred in 2022 (30.81%), while 2021 saw a slight decline (-1.44%).
• ATM transactions peaked in 2023 at 75.01 million but dropped by 5.63% in 2024, settling at 70.79 million. This decline suggests a shift towards alternative digital payment methods.
• The value of ATM transactions surged by 41.64% in 2023, reaching TZS 13.9 trillion, before slightly decreasing by 0.77% in 2024 to TZS 13.79 trillion.

ATM transactions in Tanzania from 2020 to 2024:

Table: ATM Transactions in Tanzania (2020–2024)

Key Observations

• The number of ATMs grew by 48.7% over five years, from 1,462 in 2020 to 2,174 in 2024, with the largest growth occurring in 2022 (30.81%).
• ATM transactions peaked in 2023 at 75.01 million but declined by 5.63% in 2024, signaling a possible shift to digital payment methods.
• The value of transactions followed a similar pattern, peaking at TZS 13.9 trillion in 2023 before slightly declining to TZS 13.79 trillion in 2024.

Rising Transaction Values and Growing USD Dependence

From 2020 to 2024, Tanzania’s payment system saw significant shifts in transaction patterns. TISS transactions in Tanzania Shillings (TZS) grew in value by 68.6% (from TZS 186,369 billion in 2020 to TZS 314,233 billion in 2024) despite a 2.92% drop in volume in 2024. Meanwhile, USD-denominated transactions surged—the volume increased by 204%, from 227,894 in 2020 to 692,271 in 2024, while the value rose by 108%, from TZS 16,440 million to TZS 34,215 million. These trends indicate a shift towards high-value transactions in TZS and a growing preference for USD in financial settlements, reflecting deeper integration with global trade and potential shifts in monetary dynamics.

The trends in both Tanzania Shilling (TZS) and United States Dollar (USD) transactions reveal important insights about Tanzania’s financial system, monetary policy, and economic activities.

1. TZS Transactions: High Value Growth Despite Volume Decline

• The volume of transactions (number of transactions) peaked in 2023 at 4.11 million but dropped slightly in 2024 to 3.98 million (a 2.92% decrease).
• However, the value of transactions continued to grow significantly, reaching TZS 314,233 billion in 2024, a 22.87% increase from 2023.

What It Means:

✅ Higher transaction values but fewer transactions indicate a shift toward larger-value transactions. This suggests:

• Increased high-value economic activities, such as major government, corporate, and infrastructure payments.
• Inflationary effects or currency depreciation, where more shillings are needed for transactions.
• Financial consolidation—fewer but higher-value transactions may indicate improved digital banking efficiency or businesses reducing transaction frequency.

2. USD Transactions: Strong and Consistent Growth

• The volume of USD transactions has increased every year, reaching 692,271 transactions in 2024, a 27.03% increase from 2023.
• The value of USD transactions also grew steadily, reaching TZS 34,215 million in 2024, a 24.48% increase from 2023.

What It Means:

✅ Increased reliance on USD transactions suggests:

• Greater use of USD for trade and financial settlements, possibly due to exchange rate volatility or confidence in the dollar.
• More foreign investment and international transactions, reflecting economic globalization and foreign trade expansion.
• Hedging against Tanzania Shilling fluctuations, as businesses might prefer USD for stability.

3. TZS vs. USD Transactions: A Shift Toward Dollarization?

• While TZS transactions showed mixed trends (declining volume but growing value), USD transactions consistently increased in both volume and value.
• This suggests a partial shift toward dollarization in Tanzania's financial system, where businesses and individuals are increasing their reliance on the USD.

Implications for Tanzania's Economy:

• Monetary Policy Challenges: If more transactions shift to USD, the Bank of Tanzania (BoT) may have less control over money supply and inflation.
• Foreign Exchange Pressure: Higher USD demand could put pressure on Tanzania’s foreign exchange reserves.
• Investment Confidence: A rising USD transaction trend could indicate more foreign investor participation, boosting the economy.

Final Thought

The trends suggest that while local currency transactions remain dominant, foreign currency transactions are growing faster. This could indicate:

• A strengthening corporate and trade sector using more USD.
• Macroeconomic adjustments due to inflation, exchange rate policies, or economic shifts.

TISS (Tanzania Interbank Settlement System) transactions from 2020 to 2024:

TISS Transactions Denominated in Tanzania Shillings (TZS)

1. Transaction Volume (Million)
   • 2020: 2.48 million
   • 2021: 3.26 million (31.37% increase)
   • 2022: 3.83 million (17.68% increase)
   • 2023: 4.11 million (7.28% increase)
   • 2024: 3.98 million (2.92% decrease)

Trend: A steady increase in volume from 2020 to 2023, but a slight decline in 2024.

2. Transaction Value (TZS billion)
   • 2020: 186,369 billion
   • 2021: 174,309 billion (6.47% decrease)
   • 2022: 207,503 billion (19.04% increase)
   • 2023: 256,028 billion (23.39% increase)
   • 2024: 314,233 billion (22.87% increase)

Trend: Despite a drop in 2021, the value of transactions has shown consistent growth from 2022 to 2024.

TISS Transactions Denominated in United States Dollars (USD)

1. Transaction Volume
   • 2020: 227,894
   • 2021: 289,979 (27.24% increase)
   • 2022: 415,752 (43.37% increase)
   • 2023: 545,161 (31.13% increase)
   • 2024: 692,271 (27.03% increase)

Trend: Continuous growth in transaction volume every year, indicating increased dollar transactions.

2. Transaction Value (TZS million)
   • 2020: 16,440
   • 2021: 25,210 (29.43% increase)
   • 2022: 25,210 (18.48% increase)
   • 2023: 27,502 (9.09% increase)
   • 2024: 34,215 (24.48% increase)

Trend: The value of USD transactions has steadily increased each year, with the highest growth rate in 2024.

Key Insights:

• TZS transactions experienced a drop in volume in 2024 but saw a significant increase in value.
• USD transactions have shown consistent growth in both volume and value, highlighting the increasing role of USD-based transactions in Tanzania’s financial system.

Mobile banking in Tanzania has experienced significant fluctuations over the past five years. The number of subscribers dropped by 17.77% in 2021 but rebounded strongly in 2022 with a 64.30% increase, reaching 7.92 million users. Active users followed a similar trend, peaking at 2.65 million in 2024 after a 50.91% rise in 2023. The volume of transactions showed remarkable growth in 2024, surging by 76.04% to 144.34 million transactions, reflecting increasing trust in mobile banking. Despite a decline in transaction value in 2023 (-16.78%), it recovered in 2024, reaching TZS 29.92 trillion (+17.32%), signaling renewed confidence in digital financial services. These trends highlight the evolving landscape of mobile banking and its role in financial inclusion in Tanzania.

Analysis of Mobile Banking Trends in Tanzania (2020–2024)

1. Number of Subscribers

• The number of mobile banking subscribers fluctuated, decreasing from 5.86 million in 2020 to 4.82 million in 2021 (-17.77%), before recovering significantly in 2022 to 7.92 million (+64.30%).
• Growth continued in 2023 (8.99 million, +13.47%) and 2024 (9.48 million, +5.41%), indicating a steady increase in mobile banking adoption.

2. Active Users

• Active users followed a similar trend, dropping from 1.48 million in 2020 to 1.24 million in 2021 (-16.27%), then rebounding in 2022 to 1.62 million (+30.78%).
• The highest increase occurred in 2023 (2.45 million, +50.91%), reflecting strong user engagement. In 2024, growth slowed but remained positive (2.66 million, +8.43%).

3. Volume of Transactions

• The number of transactions increased from 59.23 million in 2020 to 71.45 million in 2021 (+20.63%), and further to 92.13 million in 2022 (+28.93%).
• However, there was a decline in 2023 (81.99 million, -11.00%), before a major rebound in 2024 (144.34 million, +76.04%).

4. Value of Transactions (TZS Million)

• The total transaction value surged from TZS 15.23 trillion in 2020 to TZS 24.97 trillion in 2021 (+64.00%), and further to TZS 30.65 trillion in 2022 (+22.74%).
• A dip occurred in 2023 (TZS 25.51 trillion, -16.78%), followed by recovery in 2024 (TZS 29.92 trillion, +17.32%).

Key Takeaways

• Subscriber Growth: Recovery after the 2021 decline suggests increasing confidence in mobile banking services.
• Active Users: The 2023 surge (+50.91%) highlights efforts to boost engagement, possibly through digital financial initiatives.
• Transaction Volume: A sharp rebound in 2024 (+76.04%) signals a renewed push for digital transactions.
• Transaction Value: Despite a temporary decline in 2023, the upward trend in 2024 suggests strengthening mobile banking adoption.

Mobile Banking Trends in Tanzania (2020–2024)

Key Insights

1. Subscriber Growth:
   • A decline in 2021 (-17.77%) but a strong recovery in 2022 (+64.30%).
   • Moderate growth in 2023 (+13.47%) and 2024 (+5.41%).
2. Active Users:
   • Dropped in 2021 (-16.27%), then rebounded in 2022 (+30.78%) and 2023 (+50.91%).
   • Growth slowed in 2024 (+8.43%), indicating stabilization.
3. Volume of Transactions:
   • Increased from 2020 to 2022, peaking at 92.13 million in 2022.
   • A drop in 2023 (-11.00%) was followed by a major increase in 2024 (+76.04%).
4. Value of Transactions:
   • Peaked at TZS 30.65 trillion in 2022 but declined in 2023 (-16.78%).
   • Recovery in 2024 (TZS 29.92 trillion, +17.32%) suggests growing trust in digital financial transactions.

Money remittances in Tanzania have experienced significant shifts from 2020 to 2024, with both bank-facilitated and mobile money transactions showing remarkable growth. Bank remittance inflows surged from TZS 894.08 billion in 2020 to TZS 1,892.71 billion in 2024, marking a 111.7% increase, while outflows rose by 164.5%, reaching TZS 1,163.99 billion. Mobile money remittance inflows also grew significantly, from TZS 483.8 billion in 2020 to TZS 1.065 trillion in 2024, despite a slight 4.23% decline in transaction volume in 2024 compared to 2023. This trend highlights an increasing reliance on formal banking systems while mobile money continues to play a vital role in financial inclusion.

Bank-Facilitated Remittances

Between 2020 and 2024, remittance inflows facilitated by banks grew by 41.7%, from TZS 894.08 billion in 2020 to TZS 1,892.71 billion in 2024. The volume of inflows also saw a significant increase, peaking at 1.26 million transactions in 2024—a 50% rise from 2023. On the outflow side, remittances increased by 16% in volume and 29% in value in 2024, reaching TZS 1.16 trillion. This trend reflects an increasing reliance on formal banking channels for cross-border money transfers.

Mobile Money Remittances

Remittances through Mobile Money Operators (MMOs) saw rapid early growth but stabilized in recent years. The inflow value grew from TZS 483.8 billion in 2020 to TZS 1.065 trillion in 2024, marking a 120% increase over five years. However, after a peak of 4.02 million transactions in 2022, the volume declined by 4.23% in 2024, indicating possible shifts in user behavior or regulatory impacts. Despite this, the value of transactions rebounded in 2024 with an 8.6% increase, showcasing sustained demand for mobile remittance services.

Money Remittance Trends (2020 – 2024)

Table 1: Bank-Facilitated Remittances (TZS Billion & Volume)

Table 2: Mobile Money Remittances (TZS Billion & Volume)

Key Insights from the Data

1. Bank-Remitted Inflows grew from TZS 894.08 billion in 2020 to TZS 1,892.71 billion in 2024, showing a 111.7% increase over the period. The volume of transactions also doubled, reaching 1.26 million in 2024.
2. Bank-Remitted Outflows rose from TZS 439.88 billion in 2020 to TZS 1,163.99 billion in 2024, an increase of 164.5%, highlighting greater outbound financial activity.
3. Mobile Money Remittance Value climbed from TZS 483.8 billion in 2020 to TZS 1.065 trillion in 2024, a 120% increase, even though transaction volumes declined by 4.23% in 2024 compared to 2023.
4. The banking sector saw stronger inflow growth compared to MMOs, possibly due to increased regulatory oversight or shifting consumer preferences toward formal banking channels.

Tanzania’s financial transactions landscape is undergoing a significant digital transformation, with Electronic Fund Transfers (EFT) surging by 44.7% in volume from 14.57 million in 2020 to 21.08 million in 2024, while cheque transactions continue to decline. The value of EFT transactions grew by 77%, reaching TZS 16,769.88 billion in 2024, signaling a strong shift toward digital payments. Conversely, TZS cheque usage dropped by 36% in volume and 17% in value, while USD cheque transactions plummeted by 44% in volume and 35.7% in value over the same period. This trend reflects the increasing adoption of faster, more secure electronic payment methods, reducing reliance on traditional cheques in Tanzania's financial system.

The data from Electronic Fund Transfers (EFT), Tanzanian Shilling (TZS) cheque transactions, and United States Dollar (USD) cheque transactions highlight key shifts in Tanzania's financial landscape, indicating a preference for digital payments while traditional cheque usage declines.

1. Electronic Fund Transfers (EFT): Strong and Consistent Growth

• Volume of transactions rose from 14.57 million in 2020 to 21.08 million in 2024, reflecting a 44.7% increase over five years.
• Value of transactions increased from TZS 9,479.10 billion in 2020 to TZS 16,769.88 billion in 2024, growing by 77% over the period.
• The growth rate in volume and value remained positive every year, with double-digit growth in 2023 (13%) and 2024 (11%).

What It Means:

✅ Rising preference for digital payments as more businesses and individuals shift from paper-based payments to electronic fund transfers.
✅ Higher transaction values indicate increased economic activity, financial inclusion, and confidence in digital banking infrastructure.

2. TZS Cheque Transactions: Steady Decline

• The volume of TZS cheque transactions fell by 36%, from 651,829 in 2020 to 418,388 in 2024.
• The value of transactions dropped from TZS 2,118.08 billion in 2020 to TZS 1,758.04 billion in 2024, a 17% decline.
• The rate of decline accelerated over time, with a 14% drop in cheque volume and a 7% drop in cheque value in 2024 alone.

What It Means:

✅ Paper-based payments are rapidly declining, as businesses and individuals move towards faster, more efficient digital alternatives.
✅ Reduced cheque dependency indicates financial sector modernization, possibly driven by regulatory support and increased banking efficiency.

3. USD Cheque Transactions: Sharpest Decline

• Volume of USD cheque transactions declined by 44%, from 113,643 in 2020 to 63,244 in 2024.
• Value of transactions dropped from USD 238.22 million in 2020 to USD 153.04 million in 2024, a 35.7% reduction.
• The biggest single-year drop occurred in 2024, with a 28% decline in volume and 20% decline in value.

What It Means:

✅ Foreign currency cheque usage is declining even faster than local cheque transactions, signaling an even greater shift towards electronic payments in international trade and finance.
✅ Declining USD cheque usage could indicate improved international banking channels, such as wire transfers, mobile money, and SWIFT transactions.

Final Thought: Digital Over Paper-Based Transactions

The trends in TACH transactions clearly show that Tanzania is moving towards a digital payment ecosystem. Electronic Fund Transfers (EFT) are rising, while cheque transactions (both TZS and USD) are declining. This shift suggests:

• A more efficient banking system where businesses prefer instant fund transfers over cheques.
• A likely policy push towards financial digitization, reducing reliance on paper-based transactions.
• Stronger financial inclusion, as electronic transactions make payments faster, cheaper, and more accessible to a wider population.

TACH Transactions Trends (2020–2024)

The data from Electronic Fund Transfers (EFT), Tanzanian Shilling (TZS) cheque transactions, and United States Dollar (USD) cheque transactions highlight key shifts in Tanzania's financial landscape, indicating a preference for digital payments while traditional cheque usage declines.

1. Electronic Fund Transfers (EFT): Strong and Consistent Growth

Key Takeaways:

✅ Transaction volume grew by 44.7% from 14.57 million in 2020 to 21.08 million in 2024.
✅ Transaction value surged by 77% from TZS 9,479.10 billion to TZS 16,769.88 billion.
✅ The growth rate remained positive every year, with strong double-digit increases in 2023 and 2024.

What It Means:

• Increasing adoption of electronic payments by businesses and individuals.
• Higher transaction values signal economic expansion and greater financial activity.

2. TZS Cheque Transactions: Steady Decline

Key Takeaways:

❌ Cheque volume dropped by 36% from 651,829 in 2020 to 418,388 in 2024.
❌ Cheque value declined by 17%, from TZS 2,118.08 billion to TZS 1,758.04 billion.
❌ The decline accelerated over time, with 14% fewer cheques in 2024 compared to 2023.

What It Means:

• Businesses and individuals are reducing cheque usage, shifting to faster and more secure electronic payment methods.
• Financial sector modernization is accelerating, with paper-based payments becoming obsolete.

3. USD Cheque Transactions: Sharpest Decline

Key Takeaways:

❌ USD cheque volume declined by 44% from 113,643 in 2020 to 63,244 in 2024.
❌ USD cheque value dropped by 35.7%, from USD 238.22 million to USD 153.04 million.
❌ The biggest single-year decline happened in 2024, with a 28% drop in volume and 20% drop in value.

What It Means:

• International trade and corporate transactions are shifting towards electronic alternatives like wire transfers and SWIFT payments.
• Foreign currency cheque usage is declining even faster than local cheque transactions, suggesting increased adoption of digital banking solutions.

Final Thought: The Rise of Digital Transactions

The TACH transaction trends from 2020 to 2024 clearly show Tanzania’s transition towards a digital payment ecosystem:
✅ Electronic Fund Transfers (EFT) are rapidly increasing, showing confidence in digital banking.
❌ Cheque transactions (both TZS and USD) are steadily declining, highlighting the phasing out of paper-based payments.

Tanzania's merchant ecosystem has experienced remarkable growth, with the number of registered merchants rising from 33,037 in 2020 to over 1.3 million in 2024. This rapid expansion has driven a surge in transactions, increasing from 24 million in 2020 to over 329 million in 2024, with transaction values soaring from TZS 1.62 trillion to TZS 26.9 trillion over the same period. Dar es Salaam leads in merchant adoption, contributing significantly to the rise in digital payments, followed by Mwanza and Mbeya. These figures highlight the increasing role of merchants in Tanzania’s digital economy, reflecting broader economic growth and financial inclusion.

The data in Annex K: Merchant Statistics provides a detailed breakdown of merchant distribution, transaction volume, and transaction value across different regions of Tanzania for the years 2020 to 2024.

1. Merchant Distribution

• Merchant distribution by region: This table outlines the number of merchants by region for 2020–2024, showing growth in the number of merchants in each area. For instance:
  • Dar es Salaam stands out with significant growth, increasing from 13,164 merchants in 2020 to 394,863 merchants in 2024.
  • Mwanza also shows significant growth, from 1,587 merchants in 2020 to 117,530 merchants in 2024.
  • Arusha has the third-largest growth, increasing from 2,973 merchants in 2020 to 67,336 merchants in 2024.
• Institutional Category Breakdown:
  • Electronic Money Issuers (EMIs) dominate the merchant landscape, growing significantly over the years. They reached 1,189,384 merchants in 2024, compared to 12,103 in 2020.
  • Banks and Financial Institutions and Non-banks (Aggregators) make up the remainder, with the number of banks increasing modestly over the period, while non-banks (aggregators) show large growth, especially in 2024 (reaching 127,803 merchants).

2. Number of Merchant Transactions

• Transactions by region: This table provides transaction volume data per region for 2020–2024.
  • Dar es Salaam continues to lead in transaction volumes, increasing from 3.5 million transactions in 2020 to 122.8 million in 2024.
  • Mwanza follows closely, with a surge from 3.3 million transactions in 2020 to 32.3 million in 2024.
  • Mbeya also shows growth, reaching 26.99 million transactions in 2024 from 4.2 million in 2020.
• Institutional Categories:
  • Electronic Money Issuers continue to be the primary driver of transaction volume, with 286.7 million transactions recorded in 2024, up from 19.5 million in 2020.
  • Banks and Financial Institutions show steady growth, while Non-banks (Aggregators) display the largest increase, reflecting a shift in the market.

3. Merchant Transaction Value

• Transaction Value by Region: The total transaction values in Tanzanian Shillings (TZS) for each region.
  • Dar es Salaam remains the highest in transaction value, reaching 8.83 trillion TZS in 2024, up from 435 billion TZS in 2020.
  • Mwanza follows with 2.33 trillion TZS in 2024, a significant rise from 155.5 billion TZS in 2020.
  • Mbeya shows significant growth, moving from 199.2 billion TZS in 2020 to 1.81 trillion TZS in 2024.
• Institutional Categories:
  • Electronic Money Issuers (EMIs) lead in transaction value, with 16.16 trillion TZS in 2024.
  • Banks and Financial Institutions also have notable figures, jumping from 300.7 billion TZS in 2020 to 9.6 trillion TZS in 2024.
  • Non-banks (Aggregators) show an increase in transaction value, totaling 1.16 trillion TZS in 2024.

Summary Insights:

• The number of merchants and transaction volumes are growing at a fast pace, particularly in major cities like Dar es Salaam and Mwanza.
• The rise in the number of merchants is accompanied by a significant increase in transaction volume and value, with Electronic Money Issuers (EMIs) dominating the market.
• Non-banks (Aggregators) are playing a larger role in the market, especially in 2024, indicating a shift towards digital financial solutions beyond traditional banks.

Merchant Statistics

Table 1: Merchant Distribution by Region

Merchant Transactions by Region (Number of Transactions)

Merchant Transaction Value (TZS Billion)

Tanzania's participation in regional payment systems has shown dynamic growth, with EAPS transactions reaching TZS 614.2 billion in 2024, a 56% increase from 2023. Meanwhile, SADC RTGS transactions nearly doubled regionally, but Tanzania's share remains 0.37% in volume and 0.16% in value. Kenyan Shilling transactions surged by 310.21% in 2023, while Ugandan Shilling transactions grew in volume (22%) but declined in value (24.58%) in 2024. These trends highlight increasing cross-border trade and digital payment adoption, though Tanzania's engagement in regional platforms remains relatively low.

Tanzania's participation in regional payment systems has seen fluctuating trends, reflecting shifts in trade dynamics, economic integration, and digital adoption.

1. EAPS Transactions in Tanzania Shillings (TZS)
   • The volume of transactions peaked in 2022 at 13,730 before dropping significantly to 5,571 in 2023 and stabilizing at 5,893 in 2024.
   • Despite volume fluctuations, transaction value surged from TZS 167.1 billion in 2020 to TZS 614.2 billion in 2024, with a 56% increase in 2024 alone.
2. EAPS Transactions in Kenya Shillings (KES)
   • The volume of transactions fluctuated, dropping by 17% in 2022, rising in 2023, but falling again in 2024 to 4,569 transactions.
   • However, the transaction value grew steadily, reaching TZS 49.4 billion in 2024, driven by a 310.21% surge in 2023 and a 28% increase in 2024.
3. EAPS Transactions in Uganda Shillings (UGX)
   • The transaction volume increased by 22% in 2024, reaching 715 transactions.
   • However, the value dropped by 24.58% in 2024, indicating a possible decrease in high-value transactions.
4. SADC RTGS Transactions
   • Regional transactions nearly doubled from 493,805 in 2023 to 993,639 in 2024, showcasing growing cross-border trade and remittances.
   • Tanzania's contribution to total SADC RTGS transactions remains small, at 0.37% in volume and 0.16% in value in 2024.
   • Tanzania's RTGS transaction value grew by 36.57% in 2024, reaching ZAR 4.15 billion, following an exceptional 287% increase in 2023.

Tanzania's participation in regional payment systems has shown fluctuating trends over the years, reflecting changes in trade activity, economic integration, and the adoption of digital transactions.

Table 1: EAPS Transactions in Tanzania Shillings (TZS)

• The volume of transactions peaked in 2022 at 13,730 before dropping to 5,571 in 2023 and slightly recovering to 5,893 in 2024.
• The value of transactions has grown significantly, reaching TZS 614.2 billion in 2024, a 56% increase from 2023.

Table 2: EAPS Transactions in Kenya Shillings (KES)

• The volume of transactions fluctuated, dropping by 17% in 2022, recovering in 2023, and falling again in 2024 to 4,569 transactions.
• The value of transactions surged by 310.21% in 2023 and increased by 28% in 2024, reaching TZS 49.4 billion.

Table 3: EAPS Transactions in Uganda Shillings (UGX)

• The volume of transactions grew by 22% in 2024, reaching 715 transactions.
• However, the value of transactions declined by 24.58% in 2024, indicating a drop in high-value transactions.

Table 4: SADC RTGS Transactions

• Regional transactions nearly doubled from 493,805 in 2023 to 993,639 in 2024, highlighting increased cross-border trade and remittances.
• Tanzania’s share of total SADC RTGS transactions remains low, at 0.37% in volume and 0.16% in value in 2024.
• Tanzania's RTGS transaction value grew by 36.57% in 2024, reaching ZAR 4.15 billion, following an exceptional 287% increase in 2023.

Key Insights

• Digital payments continue to dominate regional transactions, with strong growth in electronic transfers.
• Kenya Shilling transactions have seen the highest volatility, with a sharp rise in value in 2023.
• SADC RTGS transactions have surged, but Tanzania’s contribution remains minimal.
• Uganda Shilling transactions increased in volume but declined in value, suggesting a shift toward smaller transactions.

Tanzania has experienced a steady decline in foreign aid, with official development assistance (ODA) dropping from $761 million in 2013 to $389 million in 2024 and further projected to fall to $118 million in 2025. With ODA accounting for 8.55% of the country's Gross National Income (GNI) of $79 billion, this decline signals the need for stronger domestic revenue generation, increased private sector participation, and enhanced public-private partnerships (PPPs). As tax revenue remains at only 11% of GDP, Tanzania must prioritize economic reforms to sustain growth amid shifting donor priorities.

Tanzania has experienced a fluctuating trend in Official Development Assistance (ODA) disbursements, with a peak of $761 million in 2013 followed by a gradual decline to $389 million in 2024 and a further projected drop to $118 million in 2025. This reduction has several critical implications:

1. Reduced Future Aid – Strengthening Domestic Revenue
   • In 2024, ODA accounts for 8.55% of Tanzania’s Gross National Income (GNI), indicating its significance in the economy.
   • Government tax revenue stands at 11% of GDP, which is relatively low compared to regional benchmarks (e.g., Kenya at 16% and South Africa at 25%).
   • With declining aid, Tanzania must improve tax collection efficiency, broaden the tax base, and formalize informal sectors to increase revenue generation.
2. Economic Independence – Strengthening Public Finance Management
   • The country’s GNI per capita is $1,200, showing that despite economic growth, a large portion of the population still has low-income levels.
   • Public debt management and financial discipline will be critical to ensure sustainability while reducing dependence on external funding.
3. Donor Shifts – Strategic Adaptation
   • The World Bank Group remains the top donor ($1.095 billion), followed by the U.S. ($429 million) and the Global Fund ($225 million).
   • The decline in aid could mean donors are shifting priorities, focusing on humanitarian crises or new sectors like climate resilience and digital transformation.
   • Tanzania must align its national development plans with donor interests to maintain strategic funding.
4. Public-Private Partnerships (PPP) – Mobilizing Investments
   • The sharp drop in aid from $647 million in 2023 to $118 million in 2025 suggests a pressing need for alternative financing models.
   • Attracting private sector investments in infrastructure, energy, agriculture, and technology through PPP frameworks can bridge the financing gap.
   • Strengthening investment policies and reducing bureaucratic hurdles will make Tanzania more attractive to investors.

The decline in foreign aid is a wake-up call for Tanzania to enhance tax policies, strengthen financial management, align with shifting donor priorities, and attract private sector investment. By focusing on these areas, Tanzania can transition towards sustainable economic growth and reduce its reliance on foreign assistance.

The declining foreign aid to Tanzania highlights key economic challenges and the urgent need for policy shifts:

1. Foreign Aid is Declining

• Tanzania's ODA disbursements peaked at $761 million in 2013 but have been fluctuating since.
• By 2024, aid dropped to $389 million and is projected to decline further to $118 million in 2025.
• This indicates a long-term reduction in donor dependency, forcing Tanzania to seek alternative funding sources.

2. Tanzania Must Strengthen Domestic Revenue Collection

• Tax revenue as a percentage of GDP is only 11%, much lower than in peer countries (e.g., Kenya ~16%).
• With GNI at $79 billion and GNI per capita at $1,200, the economy is growing, but tax efficiency needs improvement.
• Expanding the tax base and formalizing the informal sector can help replace lost donor funding.

3. Donor Priorities are Shifting

• The World Bank ($1.095 billion) remains the largest donor, followed by the U.S. ($429 million) and Global Fund ($225 million).
• Aid cuts suggest donors are redirecting funds to other priority countries or shifting towards new focus areas like climate resilience, technology, and security.
• Tanzania must align its policies with emerging donor interests to maintain funding for key projects.

4. Public-Private Partnerships (PPP) are Essential

• With aid dropping from $647 million in 2023 to a projected $118 million in 2025, Tanzania must fill the funding gap through private investments.
• Attracting private sector participation in infrastructure, agriculture, and industrialization is crucial for long-term economic sustainability.

5. The Path to Economic Independence

• The decline in aid can push Tanzania towards self-reliance, but it requires stronger fiscal management, industrialization, and investment-friendly policies.
• Strengthening PPP frameworks, improving business environments, and reducing bureaucratic barriers will be key to ensuring sustainable economic growth.

Conclusion

The figures tell us that Tanzania can no longer rely on foreign aid as a major economic driver. The country must boost domestic revenue, attract private investments, and adapt to changing donor priorities to ensure stable and sustainable growth.

Table: Tanzania’s ODA Disbursements (2001-2025)

Tanzania has received significant Official Development Assistance (ODA) over the years, with disbursements peaking at $761M in 2013 before gradually declining to $389M in 2024 and a projected $118M in 2025. ODA accounted for 8.55% of GNI, with major donors including the World Bank ($1.095B) and the United States ($429.5M). As Tanzania's GNI reached $79B (2024) and tax revenue stood at 11% of GDP, the decline in aid signals a transition towards economic self-reliance.

An overview of official development assistance (ODA) disbursements to Tanzania in U.S. dollars, showing the financial support received from international donors over the years:

1. Disbursements Overview

• Definition: Disbursements represent the actual funds paid by federal agencies in a fiscal year to fulfill government obligations.
• Trends: The total ODA received by Tanzania has fluctuated over the years, peaking in 2013 at $761M, followed by a decline and recovery in later years.

2. Key ODA Donors to Tanzania

These organizations and countries provided the highest amounts in recent years:

• World Bank Group: $1.095B (largest donor)
• United States: $429.5M
• Global Fund: $225.0M
• France: $132.4M
• Canada: $101.8M

3. Economic and Social Indicators

• Population: 70.5 million (with 38.9% urban and 61.1% rural)
• Gross National Income (GNI): $79 billion
• GNI per capita: $1,200
• ODA as % of GNI: 8.55% (Tanzania's economy is significantly supported by foreign aid)
• ODA per capita: $41.13 (per person aid distribution)
• Government Tax Revenue: 11% of GDP (shows the domestic revenue generation capacity)

4. Trends in ODA Disbursements to Tanzania (2001-2025)

• 2001-2005: Disbursements ranged between $44M - $98M, showing slow but steady growth.
• 2006-2013: Rapid increase from $121M in 2006 to a peak of $761M in 2013.
• 2014-2019: Decline and fluctuation, reaching $647M in 2019.
• 2020-2024: Decline in disbursements, dropping to $389M in 2024.
• 2025 (Projected): A sharp decline to $118M, indicating a possible reduction in ODA support.

5. Insights

• The significant peak in 2013 suggests major funding projects or increased donor confidence.
• The decline post-2014 suggests changes in donor priorities, Tanzania’s economic status, or governance reforms.
• The projected drop in 2025 could indicate Tanzania’s transition away from dependency on foreign aid.

Key figures and trends for Tanzania’s ODA disbursements, economic indicators, and donor contributions:

Table: Tanzania’s ODA Trends and Economic Indicators (2001-2025)

ODA disbursements to Tanzania reveals several key insights about the country's economic reliance on aid, fiscal trends, and potential shifts in donor priorities:

1. Tanzania's Economic Dependency on ODA

• ODA as a Percentage of GNI (8.55%): This indicates that a significant portion of Tanzania’s economy still depends on foreign aid. A high ODA-to-GNI ratio suggests limited domestic revenue generation capacity.
• ODA Per Capita ($41.13): Each Tanzanian receives an average of $41.13 in aid, reflecting Tanzania’s classification as a low-income country.

2. Trends in Foreign Aid

• 2001-2005: Low Disbursement ($44M - $98M)
  • Aid was relatively low, likely due to limited donor commitments or governance concerns.
• 2006-2013: Rapid Increase in Aid ($121M - $761M)
  • This period saw a significant increase in aid, peaking in 2013 ($761M), possibly due to large-scale development projects or donor confidence.
• 2014-2019: Decline and Fluctuation ($599M - $647M)
  • Aid dropped post-2013, which could indicate a shift in donor priorities towards other regions or sectors.
• 2020-2024: Continuous Decline ($588M - $389M)
  • This drop might reflect Tanzania’s economic growth, reducing eligibility for certain types of aid.
• 2025 (Projected): Sharp Decline ($118M)
  • If this projection holds, it suggests that donors are reducing their financial commitments significantly.

3. Shift in Tanzania’s Financial Landscape

• Government Tax Revenue (11% of GDP)
  • Relatively low compared to international benchmarks (15-20%), showing limited domestic revenue collection.
• GNI ($79B) & GNI Per Capita ($1.2K)
  • As GNI improves, Tanzania may move towards middle-income status, leading to reduced ODA eligibility.

4. Implications for Tanzania

• Reduced Future Aid: Tanzania may need to increase domestic revenue generation through better tax policies and private sector growth.
• Economic Independence: Declining aid could push Tanzania towards self-reliance, but it requires stronger public finance management.
• Donor Shifts: The decline could mean donors are redirecting funds to other priority countries or investing in different economic sectors.
• Public-Private Partnerships (PPP): To fill the funding gap, Tanzania must attract private sector investments for infrastructure and development.

Final Thought

Tanzania is transitioning away from heavy aid dependence, which is a sign of economic progress. However, the country must strengthen its domestic revenue base, improve fiscal policies, and attract private investment to sustain growth without relying on ODA.

Table: Tanzania’s ODA Disbursements (2001-2025)

Tanzania's external debt reached USD 33.91 billion in January 2025, placing it among the top 10 most indebted African countries. This marks a significant rise from USD 2.47 billion in 2011, reflecting increased borrowing for infrastructure and economic development. The central government holds 77.4% of the debt, with USD 185.4 million paid for debt servicing in December 2024. Despite this, Tanzania’s debt-to-GDP ratio remains at 47.2%, below the IMF’s 55% risk threshold. However, careful debt management is crucial to ensure economic stability and sustainable growth.

​As of January 2025, Tanzania's external debt stood at approximately USD 33,905.10 million, a slight decrease from USD 34,075.50 million in December 2024. This positions Tanzania among the top ten African countries with substantial external debt.​

Historical Context: Over the years, Tanzania's external debt has exhibited significant growth:​

• December 2011: USD 2,469.70 million​
• December 2023: USD 29,541.7 million ​
• November 2024: USD 33,137.7 million ​
• December 2024: USD 34,075.50 million​
• January 2025: USD 33,905.10 million​

Composition of External Debt: The central government holds the majority of this debt, accounting for approximately 77.4% as of December 2024. The remaining portion is attributed to the private sector. ​

Debt Service and Disbursements: In December 2024, Tanzania received external loan disbursements totaling USD 376.8 million, primarily allocated to the central government. During the same period, the country serviced its external debt with payments amounting to USD 185.4 million, which included USD 111.2 million in principal repayments and USD 74.2 million in interest payments. ​

Public Debt Relative to GDP: As of November 2024, Tanzania's total public debt, encompassing both external and domestic obligations, was USD 38,243.5 million. This figure represents approximately 47.2% of the nation's Gross Domestic Product (GDP). ​

International Financial Support: In December 2024, the International Monetary Fund (IMF) completed a review under the Extended Credit Facility arrangement with Tanzania, resulting in an immediate disbursement of about USD 148.6 million. Additionally, the IMF approved a disbursement of approximately USD 55.9 million under the Resilience and Sustainability Facility, totaling USD 204.5 million in financial support. ​

These figures underscore Tanzania's significant external debt position within Africa, highlighting the importance of ongoing fiscal management and international financial collaborations.

Top ten African countries with high external debt based on 2025 data:

1. South Africa – USD 176,314 million (Sep 2024)
2. Egypt – USD 155,204 million (Sep 2024)
3. Tunisia – TND 128,856 million (Sep 2024)
4. Mauritius – MUR 96,713 million (Dec 2024)
5. Angola – USD 50,260 million (Dec 2023)
6. Nigeria – USD 42,900 million (Sep 2024)
7. Namibia – NAD 36,036 million (Jun 2024)
8. Tanzania – USD 33,905 million (Jan 2025)
9. Malawi – MWK 5,887,049 million (Dec 2023)
10. Burundi – BIF 1,873,263 million (Dec 2024)

Tanzania’s external debt and its position among African countries with significant debt levels:

1. Tanzania’s Debt Growth is Significant

• Tanzania's external debt has increased dramatically from USD 2.47 billion in 2011 to USD 33.91 billion in January 2025.
• This consistent rise reflects increased borrowing for infrastructure, public services, and economic projects but also raises concerns about debt sustainability.

2. Tanzania is Among Africa’s Top 10 Most Indebted Countries

• At USD 33.91 billion, Tanzania ranks 8th in Africa for external debt.
• While this debt level is high, it is still lower than economies like South Africa (USD 176.3B), Egypt (USD 155.2B), and Nigeria (USD 42.9B).

3. Most of Tanzania’s Debt is Public

• 77.4% of Tanzania’s external debt is held by the central government, meaning the government is the primary borrower.
• This suggests reliance on international loans for development, infrastructure, and fiscal needs.

4. Debt Servicing is a Major Challenge

• In December 2024, Tanzania borrowed USD 376.8M but also had to repay USD 185.4M (including interest payments).
• This means that a significant portion of revenues is spent on debt servicing, which could limit spending on public services.

5. IMF and International Financial Support Play a Key Role

• The IMF provided USD 204.5M in December 2024 to support Tanzania’s financial stability.
• This suggests Tanzania relies on international financial institutions to manage its debt obligations and sustain economic programs.

6. Tanzania’s Debt-to-GDP Ratio is Still Manageable

• Tanzania’s total public debt (domestic + external) was USD 38.24 billion, accounting for 47.2% of GDP in November 2024.
• While below the IMF’s 55% risk threshold, continued borrowing without sufficient economic growth could lead to debt distress.

7. Comparison with Other African Countries

• South Africa and Egypt have the highest external debts, but their economies are larger and more diversified.
• Nigeria has slightly higher debt than Tanzania, but its economy benefits from oil revenues.
• Tanzania’s debt is higher than Malawi, Burundi, and Namibia, suggesting it is borrowing at a faster rate.

Final Conclusion

Tanzania's rising external debt reflects ambitious economic growth plans but also poses risks of debt distress if borrowing continues at this rate without sufficient revenue growth. Proper debt management, economic diversification, and increased exports are crucial to ensuring sustainability.