Move by Tanzania to reduce mobile money levy is commendable
What you need to know:
- The GSMA congratulates the government of Tanzania and acknowledges this as a step in the right direction in ensuring that mobile and mobile-enabled solutions are at the centre of Tanzania’s digital transformation agenda.
The fact that the world needs to be cushioned from the global economic inflation crisis is not questionable but how to do it has been a challenge for many governments.
Tanzania, however, through the budget speech presented by the Ministry of Finance and planning in parliament on June 14, announced plans to implement a further 43 percent reduction in mobile money levy in Tanzania. That was a commendable measure.
The GSMA congratulates the government of Tanzania and acknowledges this as a step in the right direction in ensuring that mobile and mobile-enabled solutions are at the centre of Tanzania’s digital transformation agenda.
The reduction in the levy will reduce the cost burden on consumers, therefore, encouraging the use of mobile money services.
As evidenced in a report published by the GSMA analysing the impact of the levy on mobile money services, it is clear that digital money is a key driver of socio-economic growth, by creating employment, driving business productivity, facilitating savings and facilitating investment, contributing to formalising the economy, and providing stability during economic downturns.
It is also a main driver of financial inclusion, contributing directly to Tanzania’s economic growth and social develop ment objectives. As set out in Tanzania’s National Financial Inclusion Framework, “mobile money services have been the main driver in the provision of financial services to the under-served especially women and people living in rural areas”.
The benefits of this positive impact will be realised in the mobile sector through improved usage of mobile money services, leading to higher revenues and across other sectors of the economy.
It will be the multiplier effects of financial inclusion and higher usage of mobile money services in both urban and rural areas. Ultimately, this positive measure will lead to a boost in Tanzania's GDP; a key measure of economic growth.
Tanzania is a model for the rest of the world in a period of looming global recession, the Ukraine war and rampant inflation.
