Tanzania’s digital payments surge to Sh30 trillion

Dar es Salaam. Tanzania’s transition to a digital economy marked a major milestone last year, with the Tanzania Instant Payment System (TIPS) processing nearly Sh30 trillion in transactions.

The number indicates a sharp increase, highlighting the country’s growing reliance on real-time digital payments.

The Bank of Tanzania’s 2024 Financial Stability Report shows a significant rise in TIPS transactions, driven by rapid uptake of digital financial services and improved interoperability among providers.

As of December 2024, the platform had processed 454 million transactions worth Sh29.90 trillion, up from 236 million transactions valued at Sh12.50 trillion during the preceding period.

To date, 46 financial institutions, including banks and electronic money issuers, have joined the TIPS network, enabling faster, more secure, and more efficient retail transactions.

“The system has emerged as a key pillar in Tanzania’s digital financial infrastructure, facilitating instant payments and promoting financial inclusion, particularly among underserved communities,” the report stated.

In addition to its payment processing achievements, the Bank of Tanzania has strengthened the Financial Services Registry (FSR) by incorporating Geographic Information System (GIS) capabilities.

The integration enables stakeholders to visualise the availability of financial services nationwide, supporting efforts to identify and address access gaps.

Ongoing support for financial service providers (FSPs) in utilising the FSR ensures the registry remains up to date and relevant, critical for expanding digital access and promoting an inclusive financial system.

“The broader financial outlook remains optimistic. Tanzania’s domestic financial system is expected to remain resilient and dynamic, underpinned by strong macroeconomic fundamentals, sound regulatory frameworks, and a rebound in banking sector performance supported by robust capital buffers,” according to the report.

The Bank of Tanzania, alongside other regulatory agencies, continues to implement proactive measures to strengthen risk management frameworks, ensuring financial institutions are better equipped to withstand potential shocks.

While the corporate sector continues to benefit from government-led growth strategies and sustained access to credit, it remains exposed to risks stemming from climate change and global supply chain disruptions, particularly in the context of persistent geopolitical tensions.

Nonetheless, with digital platforms such as TIPS and the upgraded FSR leading the way, Tanzania’s financial ecosystem is poised for deeper inclusion, enhanced efficiency, and long-term economic growth.