Digital Financial Services and Financial Technology in Tanzania

Tanzania’s financial landscape has undergone significant transformation over the past two decades, driven by the rapid growth of digital financial services (DFS) and financial technology (fintech). Historically, financial inclusion in the country has been limited, with large sections of the population—especially in rural areas—unable to access formal financial services. The rise of mobile technology, particularly mobile money services, has played a crucial role in bringing financial services to previously underserved populations. Today, fintech in Tanzania encompasses a range of services, including mobile banking, online lending, digital insurance, and blockchain solutions, all aimed at fostering greater financial inclusion.

As the Financial Sector Deepening Tanzania (FSDT) celebrates its 20-year anniversary this year, it’s important for us in the financial sector to take a moment to reflect on the past achievements, including noteworthy success and persistent challenges to shape the future of financial inclusion in Tanzania for the coming years. We will do so by releasing a series of articles exploring how various industries in the financial sector have fared over the past 20 years. In this article, we will focus on the fintech industry.

The introduction of DFS in Tanzania began in the 2000s with trail blazers like and gaining momentum with the launch of M-Pesa by Vodacom in 2008. This service allowed Tanzanians to conduct transactions via their mobile phones, significantly reducing the need for traditional banking infrastructure. The rapid adoption of mobile money services and the subsequent growth of fintech solutions have not only reshaped the country’s financial ecosystem but also opened up new economic opportunities for individuals and businesses alike. However, while digital financial services have made great strides, challenges such as the digital divide, cybersecurity risks, and limited financial literacy remain barriers to the full potential of fintech.

1. The Evolution of Digital Financial Services in Tanzania

Before the advent of DFS, Tanzania’s financial sector was characterized by high levels of financial exclusion. According to the first FinScope survey conducted in 2006, over half of the adult population lacked access to formal financial services. This was particularly true for rural areas, where traditional banking infrastructure was limited. Banks were concentrated in urban centers, leaving rural populations with few options for transferring money or accessing credit. Furthermore, stringent requirements such as minimum balance thresholds and identification requirements made formal banking inaccessible to many Tanzanians.

This lack of access to financial services meant that informal channels, such as family and friends or local moneylenders, were the primary means of saving or borrowing money. The situation was particularly challenging for smallholder farmers, micro-enterprises, and women, who were more likely to be excluded from the formal financial sector.

The trail blazers

Pioneering fintechs like Selcom Paytech and Maxcom Africa have significantly shaped Tanzania’s digital financial services (DFS) ecosystem. Both companies introduced groundbreaking solutions that transformed the market. They were among the first to enable bill payments, prepaid electricity services, and value-added functionalities, paving the way for innovation well before the Government ePayment Gateway (GePG) became operational. Their focus on SIM banking empowered individuals in rural and underserved areas, offering banking services through USSD platforms.

Selcom Paytech, established in 2001, evolved from a prepaid airtime distributor into a fintech leader. It manages Tanzania’s largest independent network of over 25,000 POS terminals and offers services like mobile money, bill payments, and agency banking. By acquiring Access Microfinance Bank in 2023 and rebranding it as Selcom Microfinance Bank, Selcom reinforced its commitment to financial inclusion. The company’s role in enabling interoperability among banks and mobile money platforms remains a cornerstone of the DFS ecosystem.

Maxcom Africa, founded in 2010, partnered with Visa in 2018 to introduce MVISA in Tanzania, democratizing banking and digital transactions via mobile phones. Maxcom also pioneered prepaid electricity services (LUKU) and SIM banking, providing financial services to underserved populations lacking internet or smartphones. Their contributions continue to drive innovation and inclusivity in Tanzania’s financial sector.

Mobile Money from 2008

The real turning point in Tanzania’s financial inclusion journey came in 2008 with the introduction of mobile money services, starting with M-Pesa by Vodacom. M-Pesa allowed users to send and receive money, pay bills, and purchase goods and services using their mobile phones. This service revolutionized the financial landscape by providing a simple and accessible way for Tanzanians to conduct financial transactions without the need for a traditional bank account.

Following the success of M-Pesa, other mobile network operators entered the market with their own mobile money services. Tigo introduced Tigo Pesa, and Airtel launched Airtel Money, creating a competitive environment that spurred further innovation. Mobile money services rapidly expanded their customer base, particularly in rural areas where banking infrastructure was weak. By 2013, half of all Tanzanian adults had used mobile financial services, demonstrating the rapid uptake of mobile money across the country.

The convenience, security, and accessibility of mobile money made it a popular alternative to cash transactions, particularly in areas where traditional banking services were unavailable. Mobile money also facilitated the growth of a network of agents, who provided cash-in and cash-out services, further increasing the reach of these services.

Expansion of DFS to include mobile loans, savings, and insurance (2010s)

The success of mobile money laid the foundation for the development of more sophisticated DFS products. By the early 2010s, mobile network operators began offering mobile savings and microloan services, enabling users to save and borrow money directly from their mobile phones. These services were particularly important for underserved populations who lacked access to traditional banking services and credit facilities. Mobile loans, often small in size and short-term, allowed individuals and small businesses to access much-needed capital quickly and without the need for collateral.

In addition to mobile savings and loans, the integration of microinsurance products into DFS platforms further expanded the scope of financial services available to Tanzanians. Microinsurance, designed to be affordable and accessible to low-income populations, provided coverage for health, life, and agricultural risks. The integration of mobile financial services with microinsurance made it easier for rural and low-income individuals to access insurance products, helping to mitigate financial risks.

2. Key Milestones and Innovations in Financial Technology

The development of fintech in Tanzania has followed a series of significant milestones that have shaped the current financial landscape. These milestones represent the rapid evolution of financial technology, from the basic mobile money services to the integration of advanced digital services.

2008: Launch of M-Pesa by Vodacom

The introduction of M-Pesa by Vodacom in 2008 marked the beginning of Tanzania’s journey into digital financial services. M-Pesa allowed users to transfer money, pay bills, and purchase goods and services via mobile phones. This innovation revolutionized the financial sector by providing financial services to millions of Tanzanians who were previously unbanked. By enabling people to conduct transactions without needing a bank account, M-Pesa significantly increased financial inclusion, especially in rural areas where banking services were scarce.

2009-2010: Entry of Competitors (Tigo Pesa and Airtel Money)

Following the success of M-Pesa, other mobile network operators entered the market with their own mobile money platforms. Tigo launched Tigo Pesa, and Airtel introduced Airtel Money. This competition spurred innovation, leading to the introduction of new features such as mobile savings, microloans, and international money transfers. The competitive environment encouraged mobile network operators to enhance their services, creating a more dynamic and inclusive financial ecosystem.

2013: Introduction of Mobile Savings and Microloans

By 2013, mobile money services had evolved beyond basic money transfers to include mobile savings and microloans. These services allowed users to save money and access credit directly from their mobile devices. This development was a significant step in broadening financial inclusion, as it provided financial services to individuals and small businesses that had previously been excluded from the formal financial sector. The availability of microloans, in particular, helped small businesses grow by providing them with easy access to capital.

2014: Implementation of Interoperability Between Mobile Money Services

One of the most significant milestones in Tanzania’s fintech development was the implementation of interoperability between mobile money services in 2014. This allowed users to transfer money across different mobile money networks, making financial transactions more seamless and accessible. Prior to interoperability, users had to maintain multiple accounts with different providers to send money across networks. Interoperability simplified the process and significantly reduced transaction costs, further enhancing financial inclusion. This development also benefited mobile money agents by improving liquidity management and reducing the need for multiple transactions to cash out funds.

2015: Regulatory Framework for Mobile Payment Services

The rapid growth of mobile money services prompted the Bank of Tanzania to introduce a regulatory framework for mobile payment services in 2015. These regulations provided guidelines for mobile money operators, ensuring the security of transactions and protecting consumer interests. The regulatory framework helped build trust in mobile money services, encouraging further investment in the fintech sector. The introduction of these regulations was a pivotal moment in the development of fintech in Tanzania, as it provided a clear legal structure within which mobile money operators could operate.

2020: Adoption of Digital Financial Services During the COVID-19 Pandemic

The COVID-19 pandemic accelerated the adoption of digital financial services in Tanzania as people sought contactless payment methods and remote banking solutions. During this period, the use of mobile money, online banking, and digital payment platforms surged as people avoided physical contact to prevent the spread of the virus. The pandemic highlighted the importance of digital financial services in ensuring continuity of economic activities, especially in times of crisis. The increased reliance on digital platforms for financial transactions during the pandemic is expected to have a lasting impact on the growth of fintech in Tanzania.

In recent years, the Tanzanian fintech sector has witnessed a surge in technological innovations that have diversified the financial services landscape and improved the quality of services offered to consumers.

Growth of Insurtech

One of the most notable innovations in Tanzania’s fintech ecosystem has been the rise of insurance technology (insurtech). Insurtech leverages digital platforms to provide affordable and accessible insurance products, particularly to low-income populations. Companies like Jamii Africa have introduced microinsurance products that offer coverage for health, life, and agricultural risks via mobile platforms. These products have expanded the reach of insurance services to individuals who were previously excluded from traditional insurance markets, helping them manage financial risks more effectively.

Adoption of Blockchain Technology

Another significant technological innovation in Tanzania’s fintech sector is the adoption of blockchain technology. Blockchain is being explored for its potential to improve the transparency and efficiency of remittances and supply chain financing. The decentralized nature of blockchain can help reduce transaction costs and increase the security of financial transactions, making it a promising tool for enhancing financial inclusion. Although still in its early stages, blockchain holds great potential for transforming the financial sector in Tanzania.

Integration of Artificial Intelligence and Machine Learning

Artificial intelligence (AI) and machine learning have also made inroads into Tanzania’s fintech sector. AI-driven chatbots and robo-advisors are increasingly being used to provide personalized financial advice, credit scoring, and fraud detection. These technologies enable financial service providers to offer more tailored services to consumers, improving customer satisfaction and enhancing the efficiency of financial transactions. AI and machine learning are expected to play a significant role in the future development of fintech in Tanzania.

3. The Role of Regulation and Policy in Promoting DFS and Fintech

The success and rapid expansion of digital financial services (DFS) and financial technology (fintech) in Tanzania can be attributed, in part, to the supportive regulatory environment fostered by the Bank of Tanzania (BoT) and other key stakeholders. The regulatory framework has been instrumental in promoting innovation while ensuring consumer protection and financial stability. This section explores the policies and regulations that have facilitated the growth of DFS and fintech in Tanzania.

Supportive Regulatory Environment

A key factor behind the growth of DFS and fintech in Tanzania is the enabling regulatory framework established by the Bank of Tanzania. The BoT adopted a “test and learn” approach that allowed mobile network operators (MNOs) and fintech innovators to experiment with new products and services while maintaining oversight to ensure compliance with financial regulations. This approach provided a flexible yet controlled environment that encouraged the development of digital financial solutions while safeguarding consumer interests.

Bank of Tanzania’s Oversight and Guidelines

In 2007, the BoT amended the Bank of Tanzania Act to give itself the authority to oversee and regulate non-bank entities offering payment services. This was a crucial step in formalizing the role of mobile network operators and fintech companies in providing financial services. In 2008, following the success of M-Pesa in Kenya, the BoT introduced the Guidelines for Electronic Payment Schemes, which allowed MNOs to offer financial services under the condition that they partner with licensed banks to protect consumer funds. These guidelines created a regulatory framework that balanced innovation with the need for financial stability and consumer protection.

By 2015, the BoT had issued more comprehensive guidelines for mobile payment services. These guidelines addressed issues such as transaction security, anti-money laundering (AML) compliance, and consumer protection. The clear regulatory framework helped to build trust in mobile money services, encouraging more consumers to adopt these services.

Interoperability as a Policy Success

One of the most significant regulatory achievements in Tanzania’s DFS ecosystem has been the implementation of mobile money interoperability. Interoperability allows users of different mobile money networks to send and receive money across platforms, creating a seamless financial ecosystem. Before interoperability, users needed to manage multiple accounts with different providers or rely on inefficient and costly methods to transfer money across networks.

In 2014, Tanzania became the first country to successfully implement interoperable mobile financial services at a national level. This milestone was achieved through a collaborative effort involving mobile network operators, the Bank of Tanzania, and key stakeholders such as the International Finance Corporation (IFC). The IFC played a central role as a neutral facilitator, helping to mediate discussions and negotiations between competing mobile network operators.

Impact of Interoperability on Financial Inclusion

The implementation of interoperability had a profound impact on financial inclusion in Tanzania. It reduced transaction costs for users, improved the efficiency of mobile money services, and made it easier for people to send and receive money across different networks. This was particularly beneficial for rural populations, where financial access points were limited, and for mobile money agents, who could now serve customers of multiple networks without facing liquidity constraints. The success of interoperability in Tanzania serves as a model for other countries looking to enhance their DFS ecosystems through similar regulatory initiatives.

Consumer Protection and Security Measures

The rapid growth of DFS and fintech services necessitated strong regulatory measures to protect consumers and ensure the security of financial transactions. As more Tanzanians adopted mobile money and other digital financial services, concerns around data privacy, fraud, and cybersecurity became more prominent.

Anti-Money Laundering (AML) and Know Your Customer (KYC) Regulations

To address these concerns, the Bank of Tanzania implemented stringent AML and KYC regulations for mobile money operators and fintech providers. These regulations require service providers to verify the identity of their customers and monitor transactions for suspicious activities. By enforcing these regulations, the BoT aimed to prevent money laundering, fraud, and other illicit financial activities, while maintaining the integrity of the financial system.

Data Privacy and Cybersecurity

As DFS and fintech services expanded, the risk of cyberattacks also increased. Ensuring the security of user data and financial transactions became a priority for regulators. The BoT worked closely with fintech providers to establish cybersecurity standards that protect consumer data and prevent fraud. These efforts have been essential in building trust among consumers, who need to feel confident that their personal and financial information is secure when using digital financial services.

Collaborative Policy Development

The development of DFS and fintech in Tanzania has been characterized by close collaboration between the public and private sectors. The BoT, fintech companies, mobile network operators, and international development organizations such as the IFC and the Financial Sector Deepening Trust (FSDT) have worked together to create a regulatory environment that fosters innovation while ensuring financial stability and consumer protection.

Public-Private Partnerships

Public-private partnerships have been key to the success of DFS in Tanzania. For example, the FSDT has played a vital role in facilitating collaboration between the BoT, fintech companies, and mobile network operators to drive financial inclusion. The FSDT’s work in gathering market data, promoting innovation, and supporting the introduction of agency banking has helped create an ecosystem where DFS can thrive.

Regulatory Challenges and Opportunities

While Tanzania’s regulatory environment has been instrumental in promoting the growth of DFS and fintech, there are still challenges to be addressed. One of the main challenges is the need for regulations to keep pace with the rapid advancements in fintech technology. As new technologies such as blockchain, artificial intelligence, and digital currencies emerge, regulators must continue to adapt and update the regulatory framework to address potential risks.

Additionally, there is a need for greater regulatory focus on financial literacy and consumer education. Many Tanzanians, particularly those in rural areas, still lack a basic understanding of how digital financial services work. Increasing financial literacy will be crucial for ensuring that consumers can fully benefit from DFS and fintech.

4. Challenges in the Adoption and Growth of DFS and Fintech

While digital financial services (DFS) and financial technology (fintech) have greatly expanded financial inclusion in Tanzania, several challenges still hinder their full adoption and growth. These challenges range from low financial literacy and trust issues to the digital divide and regulatory hurdles. Addressing these obstacles is crucial to ensuring that fintech can reach its full potential in enhancing financial inclusion and driving economic development.

Financial Literacy and Trust Issues

One of the significant barriers to the widespread adoption of DFS and fintech in Tanzania is the low level of financial literacy. A large portion of the population, particularly in rural areas, is not well-versed in the use of financial services, both traditional and digital. According to the 2023 FinScope survey, only 60% of the Tanzanian population understood basic financial concepts, with women and younger individuals being particularly underinformed. This lack of financial literacy makes it challenging for many Tanzanians to fully benefit from digital financial services, as they may not be aware of how these services can improve their financial well-being.

Building Consumer Trust

Trust is another critical issue impacting the adoption of DFS. Although mobile money services have gained popularity, there remains a segment of the population that is skeptical of digital transactions. This distrust stems from concerns about fraud, data privacy, and the perceived complexity of using digital financial services. For many consumers, particularly those in rural areas with limited experience in using digital platforms, there is a fear that using mobile money or online banking could result in financial losses or security breaches.

Efforts to build consumer trust are essential for increasing the adoption of DFS and fintech services. These efforts include improving transparency in transactions, providing robust customer support, and ensuring that users are adequately protected from fraud. Financial literacy campaigns that focus on educating consumers about the benefits and security of digital financial services are also critical in overcoming trust issues.

Digital Divide and Access to Technology

The digital divide in Tanzania is another major challenge affecting the growth of DFS and fintech. While mobile phone penetration has significantly increased, with around 60% of the adult population using mobile financial services, access to smartphones and reliable internet remains limited, particularly in rural areas. This divide restricts the reach of more advanced digital financial services, such as mobile banking apps and fintech platforms that require internet access and smartphones to function effectively.

The lack of infrastructure in remote areas further exacerbates this issue. Rural populations are often left out of the digital economy due to inadequate telecommunications networks and limited access to electricity, which makes it difficult for residents to charge their mobile phones regularly. Bridging this digital divide is crucial for ensuring that the benefits of fintech and DFS reach all segments of the population, particularly those in remote and underserved areas.

Cybersecurity Concerns

As the fintech and DFS ecosystems expand in Tanzania, cybersecurity has become a growing concern. The increasing sophistication of digital financial services has made them more vulnerable to cyberattacks, fraud, and data breaches. Ensuring the security of users’ data and financial transactions is critical for maintaining consumer trust in DFS platforms.

Cybercriminals are continuously developing new methods to exploit vulnerabilities in digital systems, which can result in significant financial losses for both users and service providers. For example, phishing attacks, mobile money fraud, and identity theft are some of the common threats facing DFS users. As more Tanzanians adopt digital financial services, the frequency and complexity of cyberattacks are likely to increase.

The Bank of Tanzania and fintech providers have taken steps to enhance the security of digital financial services by implementing stringent cybersecurity measures. These include using encryption technologies, multi-factor authentication, and regular system audits to detect and mitigate security vulnerabilities. However, continuous efforts are needed to stay ahead of emerging threats and ensure that both service providers and users are adequately protected.

Regulatory Challenges

Although Tanzania has made significant progress in creating a supportive regulatory environment for DFS and fintech, there are still challenges that need to be addressed. The rapid pace of innovation in the fintech sector often outstrips the speed at which regulations can be updated, creating uncertainty for both providers and consumers. This gap between innovation and regulation can hinder the adoption of new technologies, as service providers may be reluctant to invest in areas where the regulatory framework is unclear.

For instance, while blockchain and digital currencies hold significant potential for enhancing financial inclusion, their adoption in Tanzania is still limited by regulatory uncertainties. The lack of clear guidelines on how these technologies should be integrated into the financial system creates hesitation among fintech companies and consumers. To address this challenge, regulators need to take a proactive approach by working closely with fintech innovators to develop policies that encourage innovation while ensuring consumer protection and financial stability.

Agent Networks and Distribution Challenges

Mobile money agents play a critical role in the success of DFS in Tanzania by providing cash-in and cash-out services for customers, particularly in rural areas. However, maintaining a robust and well-distributed agent network poses challenges. Agents often face liquidity issues, especially in rural areas where the volume of transactions is lower, making it difficult for them to maintain sufficient cash on hand to meet customer needs.

Additionally, the cost of maintaining an extensive agent network can be high, particularly in areas with low population density. This limits the reach of mobile financial services, especially in remote regions where financial inclusion is most needed. Strengthening agent networks and improving liquidity management are essential for ensuring that DFS continues to expand and meet the needs of underserved populations.

5. The Impact of DFS and Fintech on Financial Inclusion

The advent of digital financial services and fintech has had a transformative impact on financial inclusion in Tanzania. By providing affordable and accessible financial services, DFS has bridged the gap between rural and urban populations, empowered underserved groups, and enabled millions of Tanzanians to participate in the formal financial system. This section explores how DFS and fintech have contributed to improving financial inclusion and the specific ways in which these services have benefited different segments of the population.

Increased Access to Financial Services

Digital financial services have significantly expanded access to financial services across Tanzania. Before the introduction of mobile money, formal financial services were largely inaccessible to rural populations, women, and smallholder farmers. The spread of mobile financial services, including mobile money, savings, and credit products, has allowed millions of Tanzanians to save money, access credit, and manage financial transactions without the need for a traditional bank account.

Mobile money services, in particular, have been instrumental in promoting financial inclusion by offering an affordable and convenient alternative to traditional banking. According to the Tanzania Communications Regulatory Authority, by mid-2017, over 20 million active mobile money wallets were being used to facilitate nearly 4 million person-to-person transactions each month. This widespread use of mobile money has provided individuals with greater control over their finances and helped integrate them into the formal economy.

Empowering Underserved Populations

DFS and fintech services have played a crucial role in empowering underserved populations, particularly women, youth, and low-income households. Women, who have historically faced barriers to accessing financial services, have benefited from the convenience and affordability of mobile money. Mobile savings and microloans have provided women with opportunities to save and invest in their businesses, contributing to their economic empowerment.

For young people, many of whom are engaged in informal employment and lack access to traditional financial services, fintech innovations such as online lending platforms have provided new opportunities to access credit. These services use alternative data sources to assess creditworthiness, enabling individuals who lack traditional collateral to access much-needed capital for personal and business use.

6. Future Outlook and Opportunities for Fintech in Tanzania

The future of financial technology (fintech) in Tanzania holds great promise, with new innovations and increasing digitalization expected to drive further expansion in financial inclusion and economic development. Emerging technologies such as blockchain, artificial intelligence (AI), and digital currencies are set to reshape the financial landscape, while efforts to improve infrastructure and address existing challenges will help ensure that fintech reaches more people across the country.

Emerging Technologies: Blockchain and AI

Two of the most promising technological advancements in the fintech space are blockchain and artificial intelligence. Blockchain, in particular, is being explored for its potential to enhance transparency, reduce transaction costs, and improve the security of financial transactions. Blockchain technology has the potential to revolutionize remittances, supply chain financing, and other financial services by eliminating intermediaries, speeding up transactions, and providing a tamper-proof record of financial activities. Although blockchain adoption is still in its early stages in Tanzania, it holds significant potential to enhance financial inclusion, especially for underserved populations.

Artificial intelligence is another key technology that is expected to play a critical role in the future of fintech in Tanzania. AI-driven tools such as chatbots, robo-advisors, and machine learning algorithms are being used to deliver personalized financial advice, assess creditworthiness, and detect fraud. These tools allow financial institutions to offer more tailored services to their customers, improving user experiences and reducing the risk of fraudulent activities. As AI technology continues to evolve, it will likely become an integral part of the financial services ecosystem in Tanzania, enabling more efficient and secure financial services.

Further Enhancing Financial Inclusion

While fintech has already made significant strides in enhancing financial inclusion, there are still opportunities for growth, particularly in reaching remote and underserved populations. Strengthening the digital infrastructure in rural areas will be key to ensuring that more Tanzanians can access the benefits of digital financial services. This includes expanding mobile network coverage, improving internet connectivity, and providing reliable access to electricity. By addressing the digital divide, fintech providers will be able to reach more customers, particularly those in areas where traditional banking services are unavailable.

Moreover, the development of innovative fintech products tailored to the needs of rural populations, such as digital agricultural financing and insurance, can help boost financial inclusion in the agricultural sector, which is a major contributor to Tanzania’s economy. Offering mobile solutions that cater to the specific needs of smallholder farmers will enable them to access credit, save for the future, and protect themselves against financial risks.

Regulatory Support and Public-Private Collaboration

The continued support of the Tanzanian government and the Bank of Tanzania will be crucial in fostering innovation and ensuring that the fintech sector remains sustainable and secure. The “test and learn” regulatory approach, which has been successful in promoting the development of mobile money and other digital financial services, can be expanded to include emerging technologies such as blockchain and AI. By working closely with fintech companies and international development organizations, regulators can create a flexible yet robust framework that encourages innovation while protecting consumers and maintaining financial stability.

Public-private partnerships will also play an essential role in driving the future growth of fintech in Tanzania. Collaboration between the government, fintech providers, mobile network operators, and international donors will be key to overcoming existing challenges, such as financial literacy gaps and infrastructure limitations. Tanzania’s government has been a vocal proponent of interoperability but its support for open banking could help advance more strategic conversations about the future of innovation and inclusion in Tanzania’s financial sector. By working together, stakeholders can ensure that fintech continues to expand and create new opportunities for Tanzanians.

7. Conclusion

The rise of digital financial services and fintech has brought about a remarkable transformation in Tanzania’s financial landscape. What began with the introduction of mobile money services in 2008 has evolved into a diverse ecosystem of digital financial solutions that include mobile banking, microloans, insurtech, and blockchain-based services. These innovations have played a crucial role in promoting financial inclusion, enabling millions of previously unbanked Tanzanians to access and use financial services.

While significant progress has been made, challenges such as the digital divide, financial literacy gaps, and cybersecurity risks remain barriers to the full adoption of fintech in Tanzania. Addressing these challenges will require concerted efforts from both the public and private sectors, as well as continued regulatory support from the Bank of Tanzania. Ensuring that digital financial services are accessible, affordable, and secure for all Tanzanians will be key to maximizing the impact of fintech on financial inclusion and economic development.

Looking to the future, emerging technologies such as blockchain and artificial intelligence offer exciting opportunities for further growth and innovation in the fintech sector. These technologies have the potential to transform financial services, making them more efficient, secure, and accessible. With the right regulatory environment, infrastructure improvements, and public-private collaboration, Tanzania is well-positioned to continue its leadership in fintech innovation and financial inclusion in the years to come.

By leveraging these opportunities and overcoming the remaining challenges, Tanzania’s fintech sector can continue to drive economic growth and enhance financial inclusion, providing more people with the tools they need to improve their livelihoods and participate in the formal financial system. The journey of digital financial services and fintech in Tanzania is far from over, and the potential for further innovation and impact remains vast.