Dar es Salaam. Tanzania’s drive towards a modern, digital economy is gathering pace, with the Bank of Tanzania (BoT) emphasising that efficient and inclusive payment systems are central to economic transformation and financial inclusion.
Deputy Governor in charge of Economic and Financial Policies, Dr Yamungu Kayandabila, made the remarks while addressing Master of Business Administration (MBA) students from Stanford University during their visit to the Bank in Dar es Salaam.
“Payment systems contribute to inclusive economic growth by enabling payments and settlements that support supply chains and underpin financial sector stability,” Dr Kayandabila said.
He said that well-functioning systems not only facilitate day-to-day transactions but also improve the effectiveness of monetary policy. “Efficient, secure and inclusive payment systems enhance the transmission of central bank interest rate decisions and strengthen liquidity management across the economy,” he added.
Dr Kayandabila outlined the history of Tanzania’s payment system reforms, noting that modernisation began in the mid-1990s as part of broader financial sector reforms. Prior to this, cash and paper-based processes dominated, with cheque clearing taking up to 14 days in upcountry areas and seven days in Dar es Salaam.
The turning point came in 1996 when BoT launched the National Payment Systems Reform Project, transitioning to electronic systems aligned with international standards. The central bank continues to monitor global payment innovations and collaborate with regional and international partners to adopt best practices while safeguarding financial stability and consumer interests.
Meanwhile, Director of National Payment Systems, Ms Lucy Shaidi, highlighted key achievements up to 2025, including rapid growth in instant payments, mobile financial services and interoperable platforms.
“These developments are driving Tanzania towards a more inclusive, efficient and increasingly digital financial system,” she said. Among the milestones is the Tanzania Instant Payment System (TIPS), which allows users to send and receive money instantly across different financial institutions, reducing costs and expanding access for individuals and businesses.
The system represents a major step forward in Tanzania’s journey towards a fully digital and inclusive economy.
