Tanzania steps up measures to lower the cost of mobile money transactions

DAR ES SALAAM: THE Tanzanian government has stepped up measures to lower the cost of mobile money transactions and expand access to affordable digital financial services across the country.

The Minister for Finance, Khamis Mussa Omar, told this to Parliamentarians in Dodoma  on Monday noting that the reforms implemented through the Bank of Tanzania are aimed at reducing transaction charges, strengthening payment systems infrastructure and creating a more enabling regulatory environment.

The minister made the statement when responding to a question from Kinondoni MP, Tarimba Abbas, who sought clarification on why the government has not set indicative price caps for mobile money service charges.

Elaborating, the minister stated that in 2024, the central bank introduced a ceiling on transaction fees under instant payment systems and the Tanzania Automated Clearing House (TACH), capping charges at 2,000/- per transaction and that in 2025, further reductions were made on digital transfer costs, including transactions between mobile wallets and bank accounts via the Tanzania Instant Payment System (TIPS).

ALSO READ: Unsung guardians of the night: Tanzania sees the hidden value of bats

Additionally, he said that under the revised framework, transaction fees have been capped at a maximum of 5,000/- for transfers exceeding 500,000/-, with structured limits applied to lower transaction bands.

Moreover, the minister noted that the government has also expanded competition in the electronic payments sector by licensing more service providers where as of March 2026, a total of 113 providers had been licensed to operate in the country.

“The government, through the central bank, will continue working closely with payment service providers to regularly assess transaction costs and implement further reductions without compromising the stability and security of the national payment system,” he said.