Dar es Salaam. New transaction data is providing a clearer picture of how Tanzania’s economy is evolving, with analysts pointing to rising payment values and expanding digital channels as indicators of growing institutional activity and economic maturity.
Experts speaking at a recent breakfast forum said payments and collections data, once treated largely as a back-office function, has become an important real-time indicator of economic activity, revealing who is transacting, at what scale and through which channels.
Figures presented at the forum show that between 2024 and 2025 the number of recorded payments increased modestly from about 490,000 to 523,000 transactions, representing a 6.7 percent rise.
However, the total value of transactions surged from Sh4.8 trillion to Sh7.2 trillion, marking an increase of nearly 50 percent.
The Head of Information Technology at Stanbic Bank Tanzania, Nelson Swai, said the pattern reflects deeper structural changes within the economy.“This pattern tells us the economy is not just getting busier, but maturing,” he said.
“We are seeing a clear shift towards higher-value, more institutional transactions, alongside deeper adoption of digital payment channels.” Traditionally, growth in transaction volumes has been driven by retail activity involving small and frequent payments linked to everyday consumption.
While this trend remains significant, analysts say the much faster rise in transaction value points to expanding activity by corporates, government institutions and international traders.
Mr Swai noted that larger payments from government entities, corporates and cross-border traders are now accounting for a growing share of financial flows.
“When transaction values rise faster than volumes, it usually means businesses and institutions are using digital rails for larger settlements,” he said. “That is a strong indicator of trust in the system.”
The development mirrors broader economic changes as Tanzania continues to invest heavily in infrastructure, logistics and energy—sectors that typically generate large payment flows.
Digital government collections grow
Government revenue collection has also increasingly shifted to digital platforms.
According to the data, digitally recorded government payments increased from Sh278 billion in 2024 to Sh333 billion in 2025, representing growth of about 20 percent.
A public finance analyst, Amon Mataba, said the trend reflects ongoing reforms aimed at improving public revenue management.
“Digital government collections reduce leakage and improve cash management,” he said. “Sustained growth in these channels reflects both institutional reform and taxpayer adaptation.”
Mr Swai added that stronger integration between banks and government systems has made compliance easier for taxpayers.
Sector-level transaction data also highlighted strong growth in several areas, particularly telecom and media, consumer trade and China-related transactions.
Payments in the telecom and media sector recorded the largest absolute increase, rising from Sh1.2 trillion in 2024 to Sh2.1 trillion in 2025, representing growth of about 75 percent.
Analysts link this rise to the continued expansion of mobile money services, digital content consumption and subscription-based platforms.
“This reflects how embedded digital services have become in daily life,” said Dr Mataba.
“Telecom platforms are no longer just communication tools; they are financial ecosystems.” The consumer sector also recorded strong momentum, with transaction values increasing by just over 30 percent to Sh1.3 trillion, reflecting growth in digital commerce, formal retail payments and supply-chain settlements in fast-moving consumer goods.
Cross-border trade linked to China also expanded significantly. Transaction values in this segment increased from Sh697 billion to Sh1.1 trillion, representing nearly 58 percent growth.
Analysts say this points to rising trade flows and more formalised international settlements.
For banks, the evolving payment landscape is reshaping transactional services and financing structures.
The Head of Transaction Banking at Stanbic Bank Tanzania, Tshepo Molete, said financial institutions are increasingly using transaction data to design broader financial solutions for clients.
“We are seeing clients approach transactional banking not just for payments, but as a platform to solve broader business and sustainability needs,” he said.
He cited a recent financing arrangement involving Prescient Holdings, which approached Standard Bank Corporate and Investment Banking to fund a solar installation at its main campus.
Mr Molete said the project did not fit traditional investment banking or Environmental, Social and Governance (ESG) financing models, prompting collaboration between transaction banking and investment banking teams to structure a tailored solution.
The arrangement leveraged the client’s transaction flows and cash management patterns to structure improved pricing on an overdraft facility.
“This opens the door for building transactional banking solutions for ESG-related and solar funding in the future,” Mr Molete said.
“It shows how payment data and transaction behaviour can unlock new forms of financing.”
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