Dar es Salaam. Growing internet access, wider smartphone usage and the rapid expansion of mobile money services are reshaping financial access in Tanzania as the communications sector strengthens its role in supporting the digital economy.
According to the latest Financial Stability Report released by the Bank of Tanzania, continued growth in digital connectivity is boosting financial inclusion and strengthening the country’s financial system.
BoT Governor Emmanuel Tutuba said the report remains an important tool for assessing the soundness of the country’s financial system and identifying potential risks that could threaten stability.
He said the report also helps policymakers, financial market participants and the public to better understand developments and vulnerabilities within the financial sector, while highlighting factors that supported financial stability in 2025.
“Overall, Tanzania’s financial landscape continues to progress, supported by strengthened regulatory coordination through platforms such as the Tanzania Financial Stability Forum and bilateral arrangements among financial regulators,” said Mr Tutuba.
According to him, the frameworks have strengthened collective oversight, improved early risk identification and supported coordinated policy responses within the financial sector.
The report shows that mobile network coverage remained high at 98.6 percent in 2025, while geographical coverage increased to 79.5 percent from 75.1 percent in 2024, reflecting broader access to communication services across the country.
BoT noted that the wider reach of digital networks has improved access to mobile banking and mobile money platforms, enabling more households and businesses, particularly in rural and underserved areas, to participate in the formal financial system.
During the review period, the number of active SIM cards rose by 23 percent to 106.9 million, highlighting increasing demand for digital communication and financial services.
SIM cards linked to mobile money services also increased by 21 percent to 76.5 million, underlining the growing shift towards cashless transactions and digital payments.
According to the report, increased use of mobile money platforms is reducing reliance on physical cash while improving convenience, speed and security in financial transactions.
Internet connectivity also recorded strong growth, with broadband mobile network coverage rising to 94.2 percent in 2025 from 91 percent in 2024.
“At the same time, internet subscriptions climbed by 21 percent to reach 58 million users, while internet traffic surged by 39 percent to 2,730 million gigabytes as consumers increasingly embraced online services and digital platforms,” the report states.
BoT said rising internet usage has strengthened the reliability and efficiency of digital financial services by enabling faster transactions and supporting innovation within the financial sector.
Further progress was recorded in advanced technology adoption, with 5G coverage reaching 30 percent of the population in 2025.
According to the report, the rollout of 5G technology is expected to improve the quality of digital services through faster connectivity and lower latency, while creating opportunities for more advanced fintech solutions.
The shift towards digital lifestyles was also reflected in device usage patterns, with smartphone penetration increasing by 16 percent during the review period.
The increase has enabled more users to access services such as savings, loans, insurance and money transfers directly through digital platforms.
Meanwhile, feature phone penetration declined slightly by 0.3 percent, signalling a gradual transition towards internet-enabled devices.
The communications sector also recorded improvements in quality of service, with industry-wide performance rising to 97.4 percent in 2025 from 96 percent the previous year.
BoT said continued investment in digital infrastructure, cybersecurity systems and digital literacy programmes will remain essential in ensuring the sector supports a stable, inclusive and resilient financial ecosystem.
