Mobile money surge fuels digital economy

TANZANIA: A SIGNIFICANT increase in mobile money accounts underscores the vital role that digital payment systems play in the country’s evolving digital economy.

The accounts, according to the latest communications sector status report, increased by 9.15 per cent to 60.8 million in a quarter ending September against 55.7 million recorded in the previous period.

Additionally, the report issued by Tanzania Communications Regulatory Authority (TCRA), showed mobile money accounts grew by an average of 2.3 per cent per month between July and September with M-Pesa leading the market with 22,445,464 subscribers.

Furthermore, Tigo Pesa came second with 19,492,440 subscribers followed by Airtel Money with 11,435,679 subscribers. Others are Halopesa with 5,096,559 subscribers and Azam Pesa which reached 891,751 subscribers.

The report also showed that mobile money transactions have grown significantly over the past five years, increasing from 3.0 billion transactions in 2019 to 5.3 billion transactions last year, marking a 19 per cent annual growth rate.

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The TCRA quarterly report also showed all six mobile accounts made 310,881,561 transactions in September.

The Airtel Money is leading the pack with 92,666,780 transactions followed by M-Pesa with 89,685,384 and Tigo Pesa with 87,929,210. Others are Halopesa with 35,044,286, followed by Azam Pesa at 5,052,925 and T-Pesa comes last with 502,976 transactions.

However, during the same period, the average number of transactions per customer dropped from 117 transactions in 2019 to 100 last year.

The ten-year Tanzania Digital Economy Strategic Framework, to be implemented between this year and 2034, lists digital financial services as among the pillars of a digital economy.

Others are enabling digital infrastructure and technologies that promote inclusion, good governance, digital literacy and skills development and a digital innovation culture.