In Tanzania, mobile money services have experienced significant growth, with the number of mobile money accounts rising by 9% from 55.7 million in June 2024 to 60.8 million in September 2024. This translates to an average monthly increase of 2.3%. The volume of mobile money transactions also saw a 9% rise, from 285.5 million in June 2024 to 310.9 million in September 2024. Dominated by M-Pesa, Tigo Pesa, and Airtel Money, these three providers account for nearly 90% of the market share. This growth highlights the increasing reliance on mobile platforms for financial transactions and the strong competition driving innovations in Tanzania’s digital financial landscape.

1. Number of Mobile Money Accounts:

• The total number of mobile money accounts increased from 55.7 million (June 2024) to 60.8 million (September 2024), marking an impressive growth of 9%.
• This growth translates to a monthly average increase of 2.3% in mobile money accounts during the quarter ending September 2024.

Breakdown by Mobile Money Providers:

• M-Pesa: 22.45 million accounts in September 2024 (an increase from 21.81 million in June 2024).
• Tigo Pesa: 19.49 million accounts in September 2024 (up from 18.51 million in June 2024).
• Airtel Money: 11.43 million accounts in September 2024 (up from 11.32 million in June 2024).
• Halo Pesa: 5.09 million accounts in September 2024 (up from 4.91 million in June 2024).
• Azam Pesa: 0.89 million accounts in September 2024 (up from 0.83 million in June 2024).
• T-Pesa: 1.45 million accounts in September 2024 (up from 1.44 million in June 2024).

This data shows that M-Pesa, Tigo Pesa, and Airtel Money dominate the mobile money market, together accounting for 89% of the total mobile money accounts in the country​.

2. Idadi ya Miamala ya Pesa Mtandao (Number of Mobile Money Transactions):

• The total number of mobile money transactions also experienced a rise, with 310.9 million transactions in September 2024 compared to 285.5 million in June 2024, representing a 9% increase.
• Monthly breakdown of transactions during the quarter ending September 2024:
  • July 2024: 282.9 million transactions
  • August 2024: 310.9 million transactions​

Breakdown by Mobile Money Providers:

• M-Pesa: 89.68 million transactions in September 2024 (an increase from 86.97 million in June 2024).
• Tigo Pesa: 87.92 million transactions in September 2024 (up from 86.97 million in June 2024).
• Airtel Money: 92.67 million transactions in September 2024 (up from 89.25 million in June 2024).
• Halo Pesa: 35.04 million transactions in September 2024 (up from 33.19 million in June 2024).
• Azam Pesa: 5.05 million transactions in September 2024 (up from 1.80 million in June 2024).
• T-Pesa: 0.50 million transactions in September 2024​.

3. Historical Growth in Mobile Money Transactions:

• Over the past five years, the mobile money market has shown significant growth in transactions. The number of transactions increased from 3.02 billion in 2019 to 5.27 billion by 2023, representing an annual growth rate of 19%​.
• The average number of transactions per user, however, declined slightly from 117 transactions per user in 2019 to 100 transactions per user in 2023​.

4. Market Share:

• M-Pesa continues to dominate the mobile money market with a 36.9% market share, followed by Tigo Pesa with 32.1%, and Airtel Money with 18.8%​.
• Other providers, like Halo Pesa, Azam Pesa, and T-Pesa, make up the remaining 11%, indicating a highly competitive landscape but with clear leaders​.

Summary:

• Strong Growth: The mobile money market in Tanzania is growing rapidly, with both the number of accounts and transactions rising by 9% between June and September 2024.
• Market Dominance: M-Pesa, Tigo Pesa, and Airtel Money dominate the market, controlling nearly 90% of the market share.
• Historical Growth: Over the last five years, the number of mobile money transactions has almost doubled, reflecting the increasing use of digital financial services across Tanzania.

Mobile money services with insights about the digital financial landscape in Tanzania:

Mobile money has become central to financial inclusion efforts, providing accessible financial services to millions who might otherwise be unbanked. The strong competition among key providers ensures that consumers continue to benefit from innovative, efficient, and increasingly affordable services. Mobile money is driving not just digital finance but also broader economic growth, especially as more people and businesses engage in digital transactions.

1. Rapid Adoption and Growth:

• The growth in the number of mobile money accounts from 55.7 million to 60.8 million (a 9% increase) in just three months shows the widespread adoption of mobile financial services. This indicates that Tanzanians are increasingly turning to mobile platforms for everyday financial activities like transfers, bill payments, and savings.

2. Mobile Money as a Key Financial Service:

• With 310.9 million mobile money transactions in September 2024 alone, mobile money has become an essential part of the financial system in Tanzania. This volume of transactions indicates that mobile money is a primary method for many people to conduct financial transactions, both in urban and rural areas.

3. Dominance of Major Providers:

• M-Pesa, Tigo Pesa, and Airtel Money dominate the market, holding nearly 90% of the total market share. This indicates a high level of competition among these major players, which likely benefits consumers by offering competitive rates, better services, and innovative products. The dominance of these three providers also suggests that they have built a strong trust and user base over time.

4. Growing Inclusivity in Financial Services:

• The increase in mobile money accounts and transactions shows that digital financial services are playing a key role in financial inclusion. Individuals who may not have access to traditional banking services can easily access mobile money services, allowing them to participate in the economy and handle their finances more efficiently.

5. Competition Among Providers:

• M-Pesa remains the largest provider with a 36.9% market share, but Tigo Pesa (32.1%) and Airtel Money (18.8%) are also significant players, meaning no single company monopolizes the market. This competition ensures that providers are likely to continue improving their services, offering better pricing and convenience to users to maintain or increase their market share.

6. Increasing Transaction Volumes:

• The steady increase in the number of transactions, growing from 285.5 million in June 2024 to 310.9 million in September 2024, highlights that users are not only signing up for mobile money services but also actively using them. This rise shows a deeper integration of mobile money into everyday life, from sending money to family and friends to making business payments.

7. Digital Finance as an Economic Driver:

• Mobile money has become a major driver of the Tanzanian economy. The rise in transactions and accounts suggests that businesses, individuals, and government entities are increasingly relying on mobile money to facilitate commerce, pay salaries, and provide financial services in both urban and rural areas.

Source: Takwimu za Mawasiliano Robo ya mwaka inayoishia Septemba 2024

TICGL’s Economic Research Centre has published a discussion paper authored by Dr. Bravious Felix Kahyoza PhD, FMVA, CP3P (braviouskahyoza5@gmail.com) and Amran Bhuzohera, which explores how digital entrepreneurship and policy reforms can transform Tanzania’s Generation Z (Gen Z) into a driving force for inclusive economic growth.

The paper highlights the emerging role of youth innovation, technology adoption, and digital skills development in shaping Tanzania’s economic future. Drawing on Dr. Kahyoza’s expertise in financial modeling, investment strategy, and development policy, the study emphasizes the need for adaptive policy frameworks that empower young entrepreneurs and foster sustainable, technology-driven growth.

With over 30% of Tanzania’s population falling within the Gen Z cohort (ages 13–28), this generation represents the country’s most digitally fluent and innovation-oriented demographic. The paper argues that Tanzania’s young people are uniquely positioned to drive digital transformation, job creation, and economic diversification—if supported by inclusive policies and strategic investments.

Key Findings and Insights

• Gen Z as a digital powerhouse: More than 70% of Tanzanians under 30 actively use digital tools to earn, learn, or trade. However, only 45% of youth have internet access, limiting the scalability of their economic potential.
• High informality but high innovation: Despite 82% informal employment in non-agricultural sectors, Gen Z is leveraging mobile money, fintech apps, and e-commerce to create digital livelihoods, signaling a shift toward the “digital hustle economy.”
• Case studies of success:
  • Nala, a Gen Z–founded fintech startup, processes over $100 million in remittances annually, employing 50 young developers.
  • Ramani, an agritech platform, uses AI to digitize supply chains for 10,000 young farmers, creating 200 youth jobs.
• Continental momentum: Across Africa, Gen Z-led ventures—especially in fintech and AI—are driving innovation, with Africa’s e-commerce sector projected to hit $75 billion by 2025.
• Private sector commitment: Initiatives like the Tony Elumelu Foundation and DAI Global have already supported 42,000 Tanzanian youth apprenticeships, showing how PPPs can expand digital inclusion.

Policy Gaps and Opportunities

While Tanzania’s Digital Economy Strategic Framework (2024–2034) and National Youth Development Policy (2024) provide a strong foundation, implementation gaps persist—particularly in access to funding, digital infrastructure, and gender inclusion.

Key structural constraints include:

• Limited financing for youth-led start-ups.
• Low broadband penetration in rural areas (only 31% of households).
• A disconnect between education curricula and digital economy needs.

Policy Recommendations

To unlock Gen Z’s digital potential, the paper proposes a comprehensive set of reforms:

1. Digital Literacy Subsidy Program: Public-private partnerships (PPPs) should provide subsidized digital training for 2 million youth by 2028, reducing NEET rates by 15%.
2. Fintech and Agritech Start-up Fund: Local grant mechanisms and gender-inclusive finance to support 500,000 Gen Z entrepreneurs.
3. PPP-Led Broadband Expansion: Extend rural connectivity to 80% of households under UNESCO’s Digital Agenda Initiative.
4. AI and Innovation Hubs: Establish at least five national digital innovation hubs linked to universities to incubate youth-led ventures.
5. Tax Reforms for Digital Enterprises: Incentivize tech startups with 0–5% tax brackets for early-stage growth phases.

Conclusion

Tanzania’s Gen Z holds the key to the nation’s digital and economic future. With policy coherence, infrastructure development, and public-private collaboration, Gen Z can evolve from digital consumers into creators of sustainable wealth and innovation.

The authors emphasize that digital entrepreneurship is not merely an economic strategy—it is a pathway to equity, inclusion, and intergenerational transformation. By 2030, with well-implemented reforms, Tanzania could emerge as one of Africa’s leading hubs for youth-led digital innovation.

📘 Read the Full Discussion Paper:
“Empowering Tanzania’s Gen Z: Economic Inclusion Through Digital Entrepreneurship and Policy Reforms”
Authored by Dr. Bravious Felix Kahyoza PhD, FMVA, CP3P (braviouskahyoza5@gmail.com) and Amran Bhuzohera
Published by TICGL | Economic Research Centre
🌐 www.ticgl.com