Tanzania has made significant strides in its digital economy, with over 75 million active mobile money accounts and a formal financial inclusion rate of 76% among adults, up from 65% in 2017. The country has also achieved a high level of financial access, with nine in ten Tanzanians living within five kilometers of a financial access point. This progress is attributed to the collaborative efforts of banks, fintechs, mobile operators, and technology companies.
The collaboration between different stakeholders has been crucial in driving Tanzania's digital economy. Mobile network operators have reached people in remote areas, while banks have extended their services into wallets and agent networks. Fintechs have solved specific problems, and the Bank of Tanzania has created an enabling environment for innovation and experimentation. Global technology partners have also played a key role in connecting the country's digital economy to the rest of the world.
Mastercard, a global technology company, has been working with local partners in Tanzania to drive financial inclusion and digital payments. The company has collaborated with mobile money providers, such as Mixx, Tigo, and Airtel, to offer virtual and physical cards, mobile wallet services, and digital banking solutions. These partnerships have enabled Tanzanians to access a range of financial services, including cross-border remittances and online payments.
One of the key benefits of digital payments is that they leave a record, which can be used to build a credit history. This is particularly important for small and medium enterprises, which make up the majority of businesses in Tanzania but have limited access to credit. Mastercard has worked with NMB Bank to introduce a QR Pay by Link solution, which allows vendors to accept card payments without a card machine.
Security is a critical component of Tanzania's digital economy, and Mastercard has emphasized the importance of trust and security in its partnerships with local companies. The company applies the same security architecture in Tanzania as it does globally, including tokenization and AI-driven fraud detection. Mastercard also invests in standards, interoperability, and shared infrastructure to ensure that digital payments are secure and reliable.
The future of Tanzania's digital economy looks bright, with local companies and global partners working together to drive innovation and growth. The country's small and medium enterprises are expected to benefit from increased access to credit and digital payments, which will help to drive economic growth and development. As Shehryar Ali, SVP and Country Manager for East Africa and Indian Ocean Islands at Mastercard, notes, "Tanzania did not import its digital economy. It built one."
The collaboration between local companies and global partners will continue to be crucial in driving Tanzania's digital economy. With the right technology, security, and global reach, local companies can design solutions that meet the specific needs of Tanzanian customers. As Ali notes, "Our job is to make sure they have world-class technology behind them and that what they build can reach beyond these borders. Nobody grows a digital economy alone, and nobody should have to."
Key points
- Collaboration between banks, fintechs, and technology companies has driven Tanzania's digital economy.
- Digital payments have the potential to increase access to credit for small and medium enterprises.
- Security and trust are critical components of Tanzania's digital economy.
