The following is an in-depth analysis of the fintech and wider digital economic development of Tanzania in 2026.
Tanzania has already achieved what many countries are still attempting: making digital finance part of everyday life.
Across cities, rural communities and the islands of Zanzibar, mobile phones are routinely used to transfer money, settle bills and conduct business. Mobile money has become so embedded in the economy that the more relevant question in 2026 is no longer whether Tanzanians can access digital financial services. It is what they can do with them once connected.
This marks an important change from the landscape explored in my previous The Fintech Times article, Mobile Money and ‘Silicon Zanzibar’: Tanzania’s Blueprint for Fintech and Economic Growth. That article highlighted mobile money, emerging fintech companies and Zanzibar’s efforts to attract technology talent. Two years later, Tanzania is moving towards a more integrated financial ecosystem in which wallets, banks, merchants and government services increasingly operate through common digital infrastructure.
Via the International Monetary Fund (IMF), Tanzania’s economy is projected to grow by 5.9 per cent this year, with inflation expected to remain at around four per cent. Nominal gross domestic product (GDP) is forecast to approach $95billion, equivalent to approximately $1,360 per person. Agriculture, mining, tourism, construction, manufacturing and telecommunications remain important economic sectors, while Dar es Salaam continues to function as the country’s main commercial and financial centre. Major financial institutions include CRDB Bank, NMB Bank and National Bank of Commerce.
From mobile-money growth to payment integration
Tanzania’s digital-finance success was built around mobile wallets. Services including M-Pesa, Mixx by Yas, Airtel Money, HaloPesa and AzamPesa made it possible for customers to transfer funds without relying on traditional bank branches. This was particularly important in rural areas, where the cost of building conventional banking infrastructure could be difficult to justify.
By the end of last year, Tanzania had approximately 75.8 million active mobile-money subscriptions, according to the central bank – the Bank of Tanzania. The number exceeds the adult population because many users maintain accounts with more than one provider.
Scale, however, created another challenge. A market containing numerous banks and mobile-money platforms can still remain fragmented when customers face higher costs or additional steps when transferring money between networks.
The Tanzania Instant Payment System, commonly known as TIPS, is intended to address this. Developed and operated by the Bank of Tanzania, the platform connects banks and non-bank financial providers through common real-time payment infrastructure. It allows money to move instantly between participating institutions rather than remaining within separate financial silos.
Notably, TIPS was developed by Tanzanian engineers rather than purchased as a complete system from an overseas vendor. This has given the country greater control over an increasingly important piece of national digital infrastructure.
Access has improved-but usage matters more
Tanzania has made substantial progress in financial inclusion. The 2023 FinScope survey found that 89 per cent of adults could access formal financial services, while 76 per cent actively used them. This represented a significant increase from 2017, when formal usage stood at 65 per cent.
Nevertheless, access does not always translate into financial security. Many customers primarily use digital accounts to send or withdraw money. Fewer use formal savings, insurance, pensions or productive credit. Tanzania’s next inclusion challenge is therefore qualitative rather than simply numerical: helping households and businesses use financial services that improve their long-term economic position.
The National Financial Inclusion Framework 2023–2028 reflects this shift. Its priorities include underserved women, young people, rural communities and micro, small and medium-sized enterprises, alongside greater consumer protection, financial education and the responsible use of digital services.
Fintech is becoming business infrastructure
Tanzania’s fintech ecosystem is also moving beyond person-to-person transfers.
Companies such as AzamPay, Selcom and ClickPesa provide payment gateways, merchant collection services, disbursement tools and application programming interfaces that enable businesses to accept payments across mobile wallets, cards and bank accounts. These services are particularly relevant for small and medium enterprises (SMEs) that need digital-payment capabilities but cannot build their own financial infrastructure.
Other Tanzanian-founded businesses have addressed remittances, savings and personal financial management. The wider ecosystem remains smaller than say the Big Four of Africa (Nigeria, South Africa, Egypt and Kenya), but it is increasingly connected to East Africa’s regional digital economy.
Zanzibar continues to contribute through Silicon Zanzibar, which was established to attract technology companies, investors and skilled professionals. However, Tanzania’s fintech development is no longer confined to the idea of creating a start-up hub. It is increasingly visible in the less glamorous work of connecting merchants, banks, mobile networks and public services.
Regulation is catching up with innovation
The Bank of Tanzania has gradually formalised its approach to financial innovation through its fintech regulatory sandbox.
The sandbox gives companies an opportunity to test products that may not fit neatly within existing rules while allowing the regulator to assess risks involving consumer protection, financial stability and market integrity. The second sandbox cohort was announced in September last year, followed by the third cohort this past June, demonstrating that experimentation is becoming a recurring part of the regulatory process rather than a one-off initiative.
The central bank has also strengthened its focus on unauthorised digital lenders and other unregistered providers. This is increasingly important as digital credit expands and consumers encounter financial products through mobile applications rather than physical institutions.
Looking ahead
Tanzania’s first digital-finance achievement was putting money onto mobile phones. Its next will be making the entire financial system work more effectively around those phones.
With real-time payment infrastructure, widespread mobile-money adoption and a more active regulatory sandbox, the foundations are increasingly in place. The measure of progress by the end of this decade will not simply be how many wallets Tanzanians possess, but whether those wallets help households save, businesses grow and money move seamlessly throughout the economy.
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