BoT sets ambitious 85 percent digital financial access target by 2028

Dar es Salaam. The Governor of the Bank of Tanzania (BoT), Emmanuel Tutuba, yesterday said that the government is working to ensure that at least 85 percent of Tanzanians have access to digital financial services by 2028.

Speaking at the 9th Gilman Rutihinda Memorial Lecture, themed: Driving the Shift towards a Cash-Lite Economy: Opportunities for Financial Innovation and Inclusion yesterday Mr Tutuba said this will be done through a collaborative efforts among key stakeholders to foster innovation and affordability while ensure security for digital transactions.

“By 2028, we aim for 85 percent of the population to be using digital financial services. We have learned valuable lessons from India’s GePG and TIPs systems to improve financial inclusion and efficiency,” he explained.

He added that reducing reliance on physical cash will foster transparency and enhance Tanzania’s ability to navigate the digital world.

The lecture honours Mr Gilman Rutihinda, who was the BoT’s Governor from January 1989 to January 1993.

His initiatives at the time led to the establishment of key BoT frameworks, particularly focusing on financial inclusivity and sustainability, which expanded access to financial services.

The lecture was honoured by the presence of the minister for Finance, Dr Mwigulu Nchemba.

Mr Tutuba said integrating Tanzania Instant Payment System (TIPs) with mobile money services and involving 44 banks across the country will help reduce costs and improve efficiency in digital financial systems.

He also stressed the importance of improving security in system development, identification processes, and integration efforts to ensure the safety of funds, information, and system usage.

“This event not only serves as a tribute to former Governor Rutihinda but also highlighted opportunities to strengthen the economy.” Meanwhile, Dr Nchemba, said the government is committed to facilitating the transition to a digital economy.

Dr Nchemba noted that financial sector reforms have helped the government reduce cash usage and promote digital transactions.

He also noted that the government is actively working to lower transaction costs through the TIPS and introducing policy incentives, such as offering tax reductions like lower VAT when making digital payments.

The government has also been working to reduce the costs of digital transactions and minimize delays in digital payments to ensure efficiency.

“We’ve removed charges on certain payments, for example, government revenue collections where there are no transaction fees,” Dr Nchemba said.

Additionally, he said, the government has reduced costs in the financial ecosystem and are engaging stakeholders to lower or eliminate transaction costs entirely.

“We are also strengthening security in system development, digital identity, and other financial aspects to ensure the safety of funds, data, and digital transactions,” he added.

Dr Nchemba also noted that the government is working to make digital financial systems more accessible, user-friendly, and affordable for all Tanzanians. This includes the expansion of ICT broadband, which will enhance connectivity in rural areas, ultimately improving financial inclusion.

Moreover, the government is encouraging fintech innovation to complement these efforts, including the alignment of policies to foster sandbox innovations that will support the shift to a cash-lite economy.

CEO of the Reserve Bank Innovation Hub, Mr Rajesh Bansal, explained how instant transfers and withdrawals through an interoperable network have made financial transactions easier for citizens. “This allows us to move beyond traditional financial data for credit enablement,” he said.

Senior Advisor at the Central Bank of Brazil’s Financial System Regulation Department, Mr Matheus Rauber, said the Brazil’s Open Finance model involves the standardized sharing of data and services between financial institutions, with customer consent playing a key role.

“The policy objectives behind Open Finance include promoting competition, financial inclusion, innovation, transparency, sustainability,” he said.

He emphasised that the policy objectives behind Open Finance are to promote competition, innovation, financial inclusion, and sustainability.