How mobile financing empowers entrepreneurial growth

DAR ES SALAAM: DIGITAL access through handset financing is empowering youth entrepreneurs, enabling them to leverage mobile technology for business growth, market reach and innovative income streams.

By providing affordable access to smartphones, it enables young people to connect with customers, manage orders, promote products and access digital platforms that were previously out of reach.

This increased connectivity not only expands market opportunities and income streams but also fosters financial inclusion, business innovation, and selfreliance, making it a vital driver of economic empowerment in Tanzania’s youth-driven informal and small business sector.

For 28-year-old Juma Mbunda, a motorcycle rider from Kitunda, Dar es Salaam, a smartphone is a lifeline.

As a father of one, he struggled with an old phone, losing customers who relied on WhatsApp updates and GPS directions. That changed when Juma saw a poster: ‘Get a smartphone today.

Pay in installments.’ He took a loan and bought an smartphone through Airtel Tanzania’s handset financing programme with itel Mobile.

“The first week was confusing,” Mbunda’s recalls.

“My brother helped me set up WhatsApp and Google Maps, and soon I began receiving direct calls from customers instead of waiting at the taxi stage.”

By the third month, Mr Mbunda’s income rose as passengers contacted him directly.

Joining Bolt expanded his reach, connecting him to more customers across the city and growing his business beyond expectations.

Rainy days no longer slowed Mbunda, who completed his smartphone installment by month six, boosting earnings, connectivity and confidence.

Meanwhile, in Mpanda, 21-year-old Ms Neema Kamunga transformed her clothing business with a financed smartphone, using WhatsApp Business to reach customers, secure online orders, and grow repeat sales within three months.

ALSO READ: Mobile money boom drives Airtel digital payment growth

A slow week in month four tested her resolve, but a small video of her products posted on WhatsApp status brought in a wave of customers.

By the end of month six, her business had grown steadily, and she paid off her smartphone loan.

“This phone didn’t just help my business, it helped me believe in myself,” she said.

Their experiences reflect a larger trend in Tanzania. The Tanzania Communications Regulatory Authority (TCRA) reported that mobile subscriptions reached 106.9 million by December 2025, up 7.7 per cent from the previous quarter.

Internet subscriptions rose 3.2 per cent to 58.1 million, and data usage grew 9.5 per cent to 808 petabytes.

Smartphone penetration climbed to nearly 40 per cent, with Android dominating over 90 per cent of devices.

The Brand Manager at itel Mobile, Thomas Wang said when launching the modern smartphone model itel A70 packed with a 12-month special offer that initiative was designed to make technology accessible.

Vodacom Tanzania and Yas Tanzania offer similar mobile device financing initiatives, enabling users to purchase smartphones through installment plans while allowing operators to remotely lock devices in cases of default.

These programmes, often tied to mobile money platforms such as M-Pesa or Tigo Pesa, aim to expand access to digital services and promote financial inclusion, especially for informal sector workers.

Analysts note that smartphones are no longer luxury items in urban and peri-urban Tanzania.

They are critical tools for small entrepreneurs, taxi riders and informal workers, enabling mobile money transactions, social media marketing and online platforms like Bolt.

“Smartphones expand both reach and efficiency,” said Dr Bravious Kahyoza, Economist & Economic Researcher from the University of Dar es Salaam. Yet risks persist.

Device loans are regulated under the Bank of Tanzania’s Microfinance Act (Tier 2).

Dr Kahyoza cautions that inconsistent incomes can lead to repayment challenges.

Some borrowers take multiple loans to settle outstanding balances, though providers can lock devices to mitigate defaults.

Government policy also plays a role in mobile adoption. Past VAT exemptions on smartphones and modems boosted affordability, although these were later removed.

The Managing Director of Airtel Tanzania, Charles Kamoto, recently emphasised that improving access to smartphones is essential for expanding financial inclusion, supporting small businesses, and accelerating Tanzania’s digital transformation.

He called for policy support to make smartphones more affordable, including tax adjustments that could reduce the cost of devices for ordinary users.

His argument reflects a wider industry belief that access to devices is now as important as access to the network itself.

The partnership between Airtel and itel demonstrates how mobile financing and digital platforms together can transform livelihoods.

By enabling affordable access to 4G smartphones, Tanzanians can expand businesses, improve service delivery, and engage more fully with the digital economy