Mobile money transactions rise 30 percent in three months

Dar es Salaam. Mobile money transactions rose by 30 percent between September and December 2023 and by 44 percent the whole of last year, statistics show.

The increase in mobile money coverage indicates the importance of the digital platform in advancing Tanzania’s financial inclusion agenda, figures from the Tanzania Communications Regulatory Authority (TCRA) show.

The growth was in tandem with the adoption of more strategies for universal broadcasting services.

The statistics revealed by TCRA Director General, Dr Jabiri Bakari, show that between October and December 2023, mobile money accounts rose by about three percent, from 51,369,347 in September to 52,875,129 in December.

“The number of transactions rose by 30 percent, from 422,309,546 in September to 549,529,470 in December 2023,” .

Tanzania has a duo-regulation arrangement for mobile money. While it is the duty of TCRA to assign and licence the shortcodes, such as *150*#, used for financial transactions and other value-added services, the Bank of Tanzania regulates the financial aspects.

The two regulatory institutions have a memorandum of understanding on digital financial services.

Meanwhile, Dr Bakari said a programme on universal broadcasting services is underway to improve broadcasting infrastructure in remote mountainous areas with harsh terrain.

TCRA and the Universal Communications Service Access Fund (UCSAF) have identified ten areas where broadcasting infrastructure would be developed through subsidies, he added.

The move is in tandem with the programme to launch Tanzania’s first satellite for communication services. The country secured an orbital position for the satellite at the World Radio-communication Conference (WRC23) held in Dubai in December 2023, Dr Bakari said.

The deployment of a communication satellite will overcome the limitations of terrestrial systems that affect the reception of radio content in topographically challenged areas such as Rombo in the Kilimanjaro region.

Tanzania was also awarded additional frequencies in the 3600–3800 MHz range to push the fifth generation of mobile technology (5G). These frequencies have the potential to transform internet speed significantly, enhance the reach of the mobile network, and drive economic growth by fostering digital communication advancements.

The report shows that basic mobile phones enabling voice calls and messages (second generation, or 2G) have penetrated 98 percent of the population, while devices with voice, messaging and data capabilities (third and fourth generation, respectively) have reached between 79 and 86 percent of the population.

The report shows a sharp drop in fraudulent mobile calls and messages from two percent of registered SIM cards in September 2022 to 0.1 percent in December 2023, indicating the effectiveness of the TCRA-led campaign on responsible use of communications services.

The report paints two pictures of the performance of the postal sector, with reported increases in parcels and items handled by the public postal operators, the Tanzania Posts Corporation (TPC) and private courier companies. The volume of items posted abroad increased from 239, 239 to 243,199 and those received from abroad fell from 616,225 to 261,983.