The Tanzanian government's push for affordable smartphones and digital devices is a strategic move to accelerate the adoption of electronic payments across various sectors. This initiative is a response to the growing trend of mobile money transactions, which increased by 5.38% in the fourth quarter of the 2025/2026 financial year. By making devices more accessible, the government aims to comply with new regulations requiring specific sectors to accept electronic payments, thereby promoting a cashless economy and strengthening revenue collection.
One of the key benefits of this approach is the empowerment of small businesses and service providers. Minister Angellah Kairuki emphasizes the importance of affordable loans with small installments and longer repayment periods, allowing ordinary citizens to acquire and use these devices without financial strain. This move will enable informal sector players, such as food vendors and small traders, to participate in digital payments, fostering financial inclusion and efficiency.
The report highlights a significant increase in active mobile money accounts, rising from 80.98 million in March to 87.05 million in June, a 7.5% growth. This surge in mobile money transactions and accounts underscores the growing preference for digital payments among Tanzanians. The government's efforts to provide public education on digital systems will further enhance citizens' skills and compliance with the law, ensuring a smooth transition to the digital economy.
The government's directive to businesses in sectors like transport, retail, hospitality, education, tourism, real estate, vehicle sales, and agriculture to adopt approved electronic payment systems within six months is a crucial step towards a cashless society. This regulation will streamline transactions, making it easier for Tanzanians to pay for services like bus fares, school fees, and property payments through electronic channels.
Despite the progress, the report reveals a disparity between smartphone and internet penetration. While internet penetration stands at 89.7%, smartphone penetration remains relatively low at 44.74%. This discrepancy presents an opportunity for strategic investment in affordable devices to bridge the digital divide. The government's collaboration with telecommunication companies and financial institutions to facilitate financing for smartphones and advanced feature phones is a positive step in this direction.
In conclusion, the Tanzanian government's initiative to promote affordable smartphones and digital devices is a well-calculated move to enhance financial inclusion, streamline transactions, and comply with new regulations. By addressing the digital divide and fostering a cashless economy, Tanzania is poised to leverage the benefits of the digital revolution, ensuring a more efficient and inclusive financial landscape for its citizens.
