Mobile money subscriptions and transactions and growing digital economy in Tanzania

1. Growth in Subscriptions:
   • Mobile money subscriptions increased by 5% from 53 million accounts in March 2024 to 56 million in June 2024.
   • The average monthly growth rate during this period was 1.9%.
2. Subscription Numbers by Provider (March 2024 vs. June 2024):
   • Airtel Money: Increased from 10,868,814 to 11,028,579.
   • Halo Pesa: Increased from 4,379,419 to 4,567,319.
   • Tigo Pesa: Increased from 17,266,651 to 17,827,565.
   • T-Pesa: Increased from 1,412,639 to 1,422,381.
   • M-Pesa: Increased from 20,416,700 to 20,677,223.
   • Azam Pesa: Increased from 102,138 to 187,691.
   • Total: Increased from 54,446,361 to 55,710,758.
3. Market Share:
   • M-Pesa leads the market with a 37.2% share.
   • Tigo Pesa and Airtel Money, along with M-Pesa, control approximately 89% of the market.
4. Monthly Figures:
   • For April 2024, the total subscriptions were 53,691,317.
   • For May 2024, the total subscriptions were 54,446,361.
   • For June 2024, the total subscriptions were 55,710,758.

The robust growth and significant market competition among the major mobile money service providers in Tanzania​.

Mobile Money Transactions

Table 1: Mobile Money Transactions (Quarter ending June 2024)

Table 2: Trend of Mobile Money Transactions in the Past Five Years

Key Points:

• Quarterly Data (April - June 2024):
  • The number of subscriptions decreased from April (85.2 million) to June (80.3 million).
  • The number of transactions increased from April (3.02 billion) to June (3.75 billion).
  • The average number of transactions per subscriber remained fairly stable at around 106 transactions.
• Annual Trends (2019 - 2023):
  • The number of subscriptions has been increasing steadily, from 25.86 million in 2019 to 52.88 million in 2023.
  • The number of transactions also increased significantly from 3.02 billion in 2019 to 5.27 billion in 2023.
  • The average number of transactions per subscriber decreased from 117 in 2019 to 100 in 2023.

The growing use of mobile money services in Tanzania, both in terms of the number of subscriptions and the total number of transactions, despite a slight decline in the average number of transactions per subscriber.

Mobile Money Subscriptions and Transactions

Mobile money subscriptions and transactions reveals a dynamic and growing digital economy in Tanzania. The high growth rates in both subscriptions and transactions reflect increased financial inclusion and active usage, which are essential for a thriving digital economy. These trends are likely to continue driving economic growth, innovation, and improved access to services across the country.

Subscriptions Growth:

• Quarterly Data (April - June 2024):
  • Subscriptions increased by 5%, from 53 million in March 2024 to 56 million in June 2024.
  • The total number of subscriptions in June 2024 was 55.7 million.

Transactions Growth:

• Quarterly Data (April - June 2024):
  • Transactions increased from 3.02 billion in April 2024 to 3.75 billion in June 2024.
  • The number of transactions in June 2024 was 3.75 billion.

Key Insights for Tanzania's Digital Economy

Rapid Adoption and Usage:

• High Subscription Growth: The increase in mobile money subscriptions reflects a strong adoption rate of mobile financial services. From March 2024 to June 2024, subscriptions grew by 5%.
• Rising Transactions: There is a corresponding rise in the number of transactions, which increased by 24.1% from April 2024 (3.02 billion) to June 2024 (3.75 billion). This indicates that users are not only subscribing but actively using mobile money services.

Average Transactions per Subscriber:

• Stable Usage per Subscriber: The average number of transactions per subscriber remained relatively stable, around 106 transactions per subscriber per month in the quarter ending June 2024. This consistency suggests that each subscriber regularly uses mobile money services.

Annual Trends:

• Five-Year Growth:
  • Subscriptions grew from 25.86 million in 2019 to 52.88 million in 2023, more than doubling over five years.
  • Transactions grew from 3.02 billion in 2019 to 5.27 billion in 2023, indicating a significant increase in usage.
  • Despite the growth in subscriptions, the average number of transactions per subscriber decreased from 117 in 2019 to 100 in 2023. This may suggest a broader base of users with varying transaction frequencies, possibly including more occasional users.

Economic Implications

1. Financial Inclusion:
   • Broad Access: The high growth in mobile money subscriptions signifies increasing financial inclusion. More Tanzanians are gaining access to financial services through mobile platforms, which is crucial for a cashless economy.
   • Active Usage: The rise in transactions indicates that these services are being actively used for daily transactions, savings, and possibly even credit and insurance products.
2. Digital Economy Growth:
   • E-commerce and Services: The widespread use of mobile money facilitates e-commerce, enabling transactions for goods and services online. This supports the growth of digital marketplaces.
   • Government Services: Mobile money can be used to pay for public services, taxes, and utilities, streamlining government revenue collection and service delivery.
3. Economic Stability and Growth:
   • Transactional Data: The data generated from mobile money transactions can provide insights into economic activity and help in policy formulation.
   • Investment Attraction: The robust growth and high penetration rates can attract investments in fintech and other digital services.