CURENT sharp growth of mobile money accounts shows that digital payment systems are becoming a pillar of economic activity in Tanzania, the latest communications sector status report has indicated.

Dr Jabiri Bakari, the Tanzania Communications Regulatory Authority (TCRA) director general, says in an April-June 2024 communications statistics report that mobile money accounts almost doubled in five years, with a five per cent increase in just three months.

Such accounts increased from 25.8m in June 2019 to 52.8m in June 2023 and 55.5m in June 2024. These accounts were used in 5.2bn transactions in June 2024 compared to 3.02bn in 2019, marking a 19 per cent annual growth rate, he stated.

TCRA licences mobile telecommunications service providers offering mobile money services, where the financial services aspect licences by the Bank of Tanzania (BoT).

Mobile money subscriptions increased by five per cent from 53m accounts in April this year to 56.0m in June, the report noted, indicating that those accounts made 295.2m  transactions in June, nearly the same quantity as in April.

M-Pesa brand was fielding 20.6m subscribers, followed by Tigopesa with 17.8m and Airtel Money with 11.02m subscribers from 10.8m earlier. Halopesa had 4,567,319 subscribers and T-Pesa had lined up 1.4m accounts. Azam Pesa increased its subscribers by 258 per cent, from 52,560 in March 2024 to 187,691 in April, the report noted. 

Mobile money subscriptions refer to all active SIM cards with mobile money service accounts that have been used at least once in the past three months. Transactions refer to deposits and transfers between accounts in the corresponding period. 

The 10-year Tanzania digital economy strategic framework, being implemented up to 2034, identifies digital financial services as a pillar of economic activity in the coming years. 

Others key requirements include an enabling digital infrastructure and technologies that promote inclusion, good governance, digital literacy and skills development, alongside a digital innovation culture, the strategic framework affirms.