Mobile money is improving financial inclusion in Tanzania

Mobile money transfer has become a hot-topic in Tanzania, having become one of the key drivers of economic development across the country.

Evidence shows that the benefits associated with mobile money are contributing to the country’s digital transformation and helping it achieve its 2025 development goals.

One way in which mobile money has done this is through improving the country’s level of financial inclusion.

Mobile money has provided both individuals and businesses with an effective and reliable method to save and invest their money, as well as access to a range of other financial services, including digital payments.

Mobile money has also helped provide small to medium enterprises (SMEs) in Tanzania with an opportunity to grow. For instance, mobile money helps businesses manage their cash flow more effectively, allowing them to build capital which can be invested in future business opportunities. This jas led to higher per capita income through rising productivity and employment levels.

Despite recent improvements to financial inclusion, however, some individuals and businesses still lack access to credit and formal savings. The next step in this development process will, therefore, be expanding these services to ensure as many people as possible are financially included.

Mobile money is at the heart of financial inclusion. 

The roll out of mobile money has traditionally relied upon a foundation of steady investment into sector as well as favourable business conditions.

To ensure that Tanzania continues to reap the benefits of mobile money, it is important that we continue to support the country’s telecoms sector.

The recent combination between two of Tanzania’s main mobile operators – Tigo and Zantel – is one good example of the way in which the country’s telecom sector can be strengthened and ensures that operators can continue to invest in the next generation of services and sustain a high-quality network.

Building on the momentum from last year, the New Year provides an opportunity to reinforce the investment environment, which in turn will help safeguard future investment into the sector.

As we enter a new decade, let us hope that Tanzania’s telecom sector continues to develop innovative solutions which help drive the country towards its 2025 development vision and enhance the financial lives for all people.