Govt spurs e-payments

DAR ES SALAAM: AS mobile money transactions rose by 5.38 per cent in the fourth quarter of the 2025/2026 financial year, the government is pushing for affordable smartphones and other digital devices, to support wider use of electronic payments across sectors.

The government said easier access to devices will help consumers and businesses comply with new regulations requiring specified sectors to accept electronic payments, while promoting cashless transactions and strengthening revenue collection.

Minister for Information and Communication Technology, Angellah Kairuki, said affordable access to devices will enable small businesses and service providers to participate in digital payments.

She made the remarks yesterday in Dar es Salaam while presenting the Communications Sector Performance Report for the quarter ending June 2026, prepared by Tanzania Telecommunications Regulatory Authority (TCRA).

“I urge financial institutions, in collaboration with telecommunication companies, to provide affordable loans with small instalments and longer repayment periods… so that ordinary citizens can acquire and use these devices without difficulty,” Ms Kairuki said.

She said access to devices will also enable informal sector players, including food vendors, small traders and landlords, to send and receive payments electronically.

According to TCRA, mobile money transactions increased by 5.38 per cent in the quarter ending June this year, compared to the previous quarter.

The number of transactions also grew by an average of 11 per cent over the past four quarters.

The report shows that active mobile money accounts increased by 7.5 per cent, from 80.98 million in March this year to 87.05 million in June this year.

Ms Kairuki said the ministry will continue to provide public education to equip citizens with skills to use digital systems effectively and in compliance with the law.

She added that the government is working with telecommunication companies and financial institutions to facilitate financing for smartphones and advanced feature phones.

The government, through the Bank of Tanzania (BoT), recently directed businesses in selected sectors to adopt approved electronic payment systems within six months.

The order covers transport, retail, hospitality, education, tourism, real estate, vehicle sales and agriculture. Once the regulations take effect in January next year, transactions such as bus fares, school fees and property payments will be conducted through electronic channels.

Meanwhile, the report indicates that the number of Tanzanians using digital services continued to rise, with smartphone penetration increasing slightly to 44.74 per cent in the quarter ending June this year, from 42.50 per cent in the quarter ending March this year.

Ms Kairuki said the number of smartphones in use rose by 5.16 per cent to over 31.34 million during the quarter.

“Data for the quarter ending June 2026 shows that the use of telecommunications, internet, broadcasting, postal and parcel delivery services continue to grow,” she said.

She added that the trend reflects significant changes in the lives of Tanzanians, as mobile phones and the internet have evolved from communication tools into essential infrastructure supporting business, education, employment, financial services, access to information and social services.

Despite the increase in access to communication devices, the minister said smartphone penetration remained relatively low compared to internet penetration, highlighting opportunities for strategic investment in affordable devices to help narrow the digital divide.

According to the report, mobile phone subscriptions increased by 4.51 per cent to 117.0 million in the quarter ending June from 111.9 million in March.

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Mobile lines accounted for 99.9 per cent of total subscriptions, while fixed-line connections made up 0.1 per cent.

On network coverage, the minister said 3G services reached 93.95 per cent of the population, with geographical coverage at 76.41 per cent.

She said 4G services covered 94.39 per cent of the population, with geographical coverage of 77.53 per cent.

For 5G, population coverage stood at 34.18 per cent, while geographical coverage was 11.34 per cent.

Ms Kairuki said internet users increased by 6.48 per cent to 62.79 million in the quarter ending June from 58.97 million in March, while internet usage rose by 11.65 per cent. Internet penetration stood at 89.7 per cent.

She said the increase reflects sustained demand for high-speed internet services.