Privacy concerns mount as mobile money booms

The Bank of Tanzania (BoT) has stated that the primary goal of licensing financial service agents is to promote financial inclusion, enabling more Tanzanians—especially those in underserved and remote areas—to access financial services without direct reliance on traditional banks.

However, officials pointed out that maintaining privacy also requires personal responsibility, as customers have the freedom to choose which agents to use and where to conduct their transactions.

BoT has licensed agents under various categories to ensure nationwide access to digital financial services, aiming to make them more affordable, secure, and widely available.

A spot check by The Citizen at agent shops in busy areas such as Kariakoo, Mwenge, Mbezi Luis, and Ubungo revealed crowded spaces where customers queued closely together, making it easy for others to overhear transactions. In some instances, customers were heard loudly requesting withdrawals of between Sh100,000 and Sh1 million, attracting the attention of bystanders.

Mobile money agents acknowledged facing challenges in maintaining privacy within small, congested outlets. “Most of us operate in shared spaces with limited room. We cannot prevent others from overhearing,” said Upendo Uwoya, an agent in Mbezi Luis.

Despite the rapid growth of mobile money outlets in urban and rural areas, they have largely been excluded from official safety initiatives. While banks and ATMs are typically equipped with surveillance cameras, armed guards, and reinforced counters, agents—who handle millions of shillings daily—often operate without even basic protective measures.

Analysts have observed that, although mobile money has greatly improved financial inclusion in Tanzania, ensuring the safety and privacy of customers remains a significant challenge that requires collaboration among agents, regulators, service providers, and the public.

According to the FinScope Tanzania 2023 survey, formal financial inclusion rose from 65 percent in 2017 to 76 percent in 2023. By June 2025, mobile money accounts reached 68 million, with total transactions exceeding 442 million, according to the Tanzania Communications Regulatory Authority (TCRA).

In a statement to The Citizen, BoT Governor Emmanuel Tutuba noted that mobile money usage continues to grow rapidly, with Tanzania aiming to match countries like Malaysia, which have made significant advancements in digital financial inclusion. He stressed that ensuring every Tanzanian has access to digital financial services remains a top priority.

“There are various types of agents, and we do not restrict where they can operate, as each serves customers at different transaction levels,” he said. “Privacy is therefore the responsibility of the individual.

Typically, you would not withdraw large amounts of money in an insecure environment. We have set a transaction limit of Sh10 million for withdrawals or transfers through an agent and have established measures to protect customers in case of disputes.”

Mr Tutuba added that several initiatives are underway to expand access to digital financial services, including the rollout of the Tanzania Instant Payment System (TIPS).

Commenting on the issue, Mr Rashid Aziz, a banking and finance lecturer at Ardhi University, highlighted that a lack of awareness leads some customers to share their PINs or even send children to collect money on their behalf.

He recommended that agents be trained in essential security skills, including queue management to prevent eavesdropping, discreet handling of transactions, and detecting cyber fraud.

He also urged training in customer service skills such as polite communication, active listening, and providing clear guidance when resolving complaints.

“Protecting the privacy and safety of mobile money users should be given the same level of importance as the security systems in place for banks and ATMs,” he said.and ATMs,” he said.