Mobile money subscriptions nearly double in four years

The momentum has continued into this year, with active subscriptions rising by 5.3 percent between June and September alone—from 68.1 million to 71.7 million.

According to the FinScope Tanzania 2023 survey, mobile money adoption increased from 60 percent in 2017 to 72 percent in 2023, making it the primary means of financial transactions for many Tanzanians, particularly those in rural areas.

Financial and economic analysts say the digital economy is rapidly becoming a reality as more people gain access to fast and convenient financial services. However, they stressed the need for continued investment in public education, as incidents of fraud remain a concern.

Statistics released by the Tanzania Communications Regulatory Authority (TCRA) for July to September 2024 show that the mobile money market is dominated by three major players—M-Pesa, Airtel Money and Mixx by Yas—which together control about 89 percent of all subscriptions.

M-Pesa leads with a 40.9 percent market share, reflecting its strong presence in both urban and rural areas.

While the number of accounts has grown significantly, the number of transactions has increased more modestly—from 3.4 trillion over the past four years to 3.7 trillion in the most recent reporting period.

Commenting on the findings, a senior economics lecturer at the University of Dodoma (Udom), Dr Lutengano Mwinuka, attributed the surge to the integration of government systems, which now allow people to send and receive money between banks and mobile wallets, as well as withdraw cash at mobile agents.

“In previous years, this was difficult due to the nature of the systems in place. But technologies have since advanced and as a result, the digital economy is becoming a reality. Many sectors are now using digital systems for payments,” said Dr Mwinuka.

However, he cautioned that telecom companies and authorities still have a duty to educate users, as many continue to fall victim to scams.

“Some people still send money to unknown individuals. System security must also be improved,” he added.

A senior lecturer in Finance and Banking at the University of Dar es Salaam (UDSM), Dr Tobias Swai, said several sectors—including schools, hospitals and colleges—have increasingly embraced mobile money for transactions.

He welcomed the positive trend but raised concerns about high transaction fees, which he said could discourage users from fully embracing digital financial services.

“There’s a need to review these charges,” said Dr Swai. “We have seen systems being integrated, such as TIPPS, which links mobile money with banks.

This growth reflects people’s increasing adoption of such systems. Authorities and telecoms have also made great strides in educating the public on the importance of mobile money.”

In general, TCRA Director General Jabiri Bakari said the communications sector continued to record notable growth during the quarter ending September 2025, underscoring its vital role in advancing Tanzania’s digital transformation and socio-economic development.

“The sector remained resilient and adaptive, reflecting increased investment, innovation and consumer uptake across telecommunications, broadcasting and postal and courier services,” the report noted.