BoT pushes FinTech revolution to fight fraud

DAR ES SALAAM: BANK of Tanzania (BoT) has called for robust adoption of Financial Technology (FinTech) as a means to combat fraud in the digital finance sector and accelerate financial inclusion across the region.

Speaking on behalf of BoT Governor, Mr Emmanuel Tutuba at the official opening of the East Africa Investment Forum yesterday in Dar es Salaam, Director of Financial Deepening and Inclusion, Mr Kennedy Komba, emphasised the region’s potential as a hub for FinTech innovation.

“East Africa stands as a beacon of dynamic potential in the FinTech space. This forum is timely, as we discuss how technology can drive innovation, inclusion, investment, and overcome barriers ahead,” he said.

Mr Komba highlighted that while digital finance access has dramatically expanded, particularly in Tanzania where 95 per cent of the population now has access to mobile money and digital services, effective usage remains limited. He noted that trust issues and fraud have impeded adoption, with over 5 per cent of traders reporting losses due to digital fraud.

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“The real test is whether these services translate into economic growth and financial health for citizens,” he stated.

The forum also explored the investment landscape, noting that despite global venture capital slowdowns, Africa’s startups raised nearly 1.4 billion US dollars in the first half of 2025, with FinTech securing close to 638 million US dollars. Mr Komba explained that investors are increasingly focused on value, profitability and scalability rather than duplicating models.

He urged investors to consider East Africa as a strategic entry point to scale across the continent. Addressing regional integration, Mr Komba stressed the importance of harmonising digital markets.

Fragmented regulations, weak interoperability, and limited cross-border trade continue to challenge growth. However, initiatives such as the Kenya-Rwanda licensing agreement and regional digital integration projects are seen as steps toward reducing transaction costs and enhancing cross-border services.

Three priority areas were identified for policymakers and market practitioners: deepening access to financial products designed for irregular incomes and climate resilience, building trust through improved consumer protection, and harmonising regulations across the East African region.

Earlier, TAFINA Chairperson, Cynthia Ponera praised East Africa for its leadership in mobile money and digital finance, highlighting investments in cross-border interoperability and resilient infrastructures.

Director for External Affairs at Vodacom Tanzania Foundation, Ms Zuweina Farah, underscored the importance of infrastructure as the backbone of the digital economy.

“Technology deployed with purpose can transform lives, as M-PESA demonstrated 18 years ago. What has changed is the scale of our ambition,” she said.