Tanzania Investment and Consultant Group Ltd

| Economic Research Centre

Tanzania’s Mobile Money Boom with over 61.88 million Accounts and 3.74 billion Transactions in 2024
January 20, 2025  
Tanzania's mobile money sector has grown remarkably, with subscriptions rising from 32.27 million in 2020 to 61.88 million in 2024, a nearly 92% increase over five years. In 2024 alone, mobile money platforms processed over 3.74 billion transactions, highlighting their central role in daily financial activities. Market leaders like M-Pesa (38.9% share), Airtel Money (30.7%), […]

Tanzania's mobile money sector has grown remarkably, with subscriptions rising from 32.27 million in 2020 to 61.88 million in 2024, a nearly 92% increase over five years. In 2024 alone, mobile money platforms processed over 3.74 billion transactions, highlighting their central role in daily financial activities. Market leaders like M-Pesa (38.9% share), Airtel Money (30.7%), and Mixx by Yas (19%) drive competition, while rural connectivity continues to expand access. This growth underscores mobile money's transformative impact on financial inclusion and its role in fostering economic participation across Tanzania.

Mobile Money Services in Tanzania: Trends and Insights

1. Mobile Money Transactions Over Five Years (2020–2024)

  • Transaction Volumes:
    • 2020: 3.41 billion transactions
    • 2021: 3.75 billion (+9.4%)
    • 2022: 4.20 billion (+12%)
    • 2023: 5.27 billion (+25%)
    • 2024: 3.74 billion (data for the full year not available yet; reflects up to Q4)​.
  • The steady growth in transaction volumes highlights the increasing reliance on mobile money for daily transactions and the efficiency of the mobile money ecosystem in Tanzania.

2. Mobile Money Subscriptions Over Five Years (2020–2024)

  • Subscription Numbers:
    • 2020: 32.27 million
    • 2021: 35.29 million (+9.4%)
    • 2022: 40.95 million (+16%)
    • 2023: 52.87 million (+29%)
    • 2024: 61.88 million (+17% compared to 2023)​.
  • The consistent growth in subscriptions indicates mobile money's critical role in financial inclusion, bringing banking services to underserved and unbanked populations.

3. Key Market Players and Market Share (December 2024)

  • M-Pesa (Vodacom): 38.9% of mobile money accounts, maintaining its leadership position.
  • Airtel Money: 30.7%, reflecting strong market penetration.
  • Mixx by Yas: 19%, emerging as a key competitor.
  • HaloPesa (Halotel): 9%.
  • T-Pesa (TTCL): 2.4%.
  • Azam Pesa: 0.1%, with a niche presence​.

4. Volume of Transactions in Q4 2024

  • Total mobile money transactions for the quarter reached 63.2 million, representing a growth from 60.8 million in Q3 2024 (+3.95%).
  • Airtel Money, M-Pesa, and Mixx by Yas were the main contributors to the growth, indicating fierce competition and innovation within the sector.

5. Future Opportunities and Challenges

  • Opportunities:
    • Expanding mobile money access in rural areas where banking services are scarce.
    • Leveraging the growing subscription base for advanced services like savings, insurance, and microloans.
  • Challenges:
    • Maintaining affordability for transactions to cater to lower-income populations.
    • Addressing cybersecurity concerns and fraud prevention as the ecosystem grows.

Tanzania’s mobile money services have grown from 32.27 million subscriptions in 2020 to 61.88 million in 2024, facilitating over 3.74 billion transactions annually. This growth underscores its critical role in financial inclusion, fostering economic participation across demographics and regions. With competition driving innovation and adoption, mobile money is poised to remain a cornerstone of Tanzania’s digital economy.

The analysis of mobile money services in Tanzania reveals several critical insights about the sector's growth, impact, and potential

1. Financial Inclusion is Increasing

  • Rising Subscriptions: The number of mobile money accounts surged from 32.27 million in 2020 to 61.88 million in 2024, reflecting greater access to financial services, especially in areas with limited traditional banking infrastructure.
  • Transaction Volumes: With over 3.74 billion transactions annually in 2024, mobile money has become an essential tool for daily financial activities, from personal transfers to bill payments.

2. Dominance of Key Players

  • Market Leaders: Providers like M-Pesa (38.9% market share), Airtel Money (30.7%), and Mixx by Yas (19%) dominate the sector, creating competitive dynamics that drive innovation and service improvement.
  • Emerging Players: Smaller providers like HaloPesa and T-Pesa have carved out niches but face stiff competition from the dominant players.

3. Growth Driven by Accessibility

  • Adoption in Underserved Areas: Mobile money bridges the gap in rural and semi-urban areas where access to traditional banking services is scarce, demonstrating its role in financial inclusion.
  • Affordability: Mobile money services are cost-effective, enabling more people to participate in the digital financial ecosystem.

4. Significant Economic Role

  • Mobile money transactions now serve as a backbone for Tanzania's financial ecosystem, enabling personal, business, and government payments. This growth has reduced reliance on cash and supported economic formalization.

5. Opportunities and Challenges

  • Opportunities:
    • Expanding mobile money services to offer additional products such as savings accounts, insurance, and loans.
    • Strengthening rural connectivity to ensure equitable access across all regions.
  • Challenges:
    • Addressing cybersecurity risks as transaction volumes and user bases grow.
    • Sustaining affordability and competitive pricing to cater to low-income users.

Implications

Tanzania’s mobile money sector is a success story of digital and financial transformation. Its growth highlights the power of technology to foster financial inclusion and economic participation. However, sustained growth will require targeted investments in infrastructure, cybersecurity, and innovative services to address challenges and unlock the sector's full potential.

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