Mobile payments have been a cornerstone of financial inclusion in Tanzania, playing a crucial role in bridging the gap left by traditional banking systems. The growth of mobile payments in 2023, as highlighted in the report, reflects significant strides in the country’s economic development.

Surge in Mobile Money Subscriptions and Agent Network

• Mobile Money Subscriptions:
  • In 2023, mobile money subscriptions increased by 34.89%, rising from 38.34 million in 2022 to 51.72 million.
  • This substantial growth indicates an increasing number of Tanzanians are embracing mobile payment solutions, driven by the simplicity and accessibility of mobile money services.
• Mobile Money Agents:
  • The number of mobile money agents expanded by 19.37%, from 1,038,874 agents in 2022 to 1,240,052 agents in 2023.
  • This growth enhances the accessibility of mobile money services, making them available even in remote areas, further promoting financial inclusion.

Growth in Mobile Payment Transactions

• Volume of Transactions:
  • The total number of mobile payment transactions increased by 41%, from 3,595.04 million in 2022 to 5,061.20 million in 2023.
  • This surge in transaction volume reflects the widespread adoption of mobile payments for a variety of financial activities, including personal transfers, business transactions, and government payments.
• Value of Transactions:
  • The value of mobile payments grew by 35.33%, reaching TZS 154,705.77 billion in 2023, up from TZS 114,315.98 billion in 2022.
  • This growth was fueled by the reduction in transaction levies and exemptions on digital government transactions and merchant transactions, making mobile payments more affordable and attractive to users.

Personal to Personal (P2P) Transactions

• Volume and Value Growth:
  • The volume of P2P transactions increased by 54.73%, totaling 364.36 million transactions in 2023.
  • The value of these transactions grew by 53.66%, reaching TZS 11,323.78 billion.
  • P2P transactions highlight the use of mobile payments for everyday personal transfers, contributing significantly to the economy by enabling quick and convenient money transfers.

Payment to Business (P2B) Transactions

• Volume and Value Growth:
  • P2B transactions experienced exponential growth, with the volume rising by 71.41% to 1,350.84 million transactions.
  • The value of these transactions increased by 68.68%, amounting to TZS 18,250.33 billion.
  • This growth in P2B transactions reflects the increasing merchant adoption of mobile payments, which is crucial for the formalization of the economy and enhancing business efficiency.

Wallet to Bank (W2B) and Bank to Wallet (B2W) Transactions

• W2B Transactions:
  • The volume of W2B transactions increased by 34.15%, totaling 6.62 million transactions.
  • The value grew by 25.21%, reaching TZS 2,714.74 billion.
  • W2B transactions indicate a pattern of saving, where users transfer funds from their mobile wallets to bank accounts, signifying a maturing financial behavior among mobile money users.
• B2W Transactions:
  • The volume of B2W transactions saw a significant increase of 41.08%, with 59.10 million transactions recorded.
  • The value of these transactions surged by 45.99%, amounting to TZS 7,963.13 billion.
  • The growth in B2W transactions demonstrates the integration of mobile payments with the banking sector, allowing for seamless transfers between banks and mobile wallets, further supporting the financial ecosystem's development.

Economic Implications

The growth in mobile payments in 2023 underscores the transformative impact of digital financial services on Tanzania's economy, driving financial inclusion, boosting economic activity, and supporting broader economic development goals.

• Financial Inclusion: The rise in mobile money subscriptions and the agent network has significantly contributed to financial inclusion, allowing more people, particularly in rural areas, to access financial services.
• Economic Activity: The increase in P2B transactions suggests more businesses are integrating mobile payments into their operations, which is crucial for economic growth, as it helps formalize the economy and increases business efficiency.
• Savings and Investment: The growth in W2B transactions reflects a growing trend in savings, which is essential for capital accumulation and long-term economic development.
• Government’s Role: The government's efforts to digitalize payments, reduce transaction levies, and promote interoperability have been key drivers of mobile payment adoption. These measures have not only enhanced efficiency but also made financial services more affordable, benefiting the economy at large.