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The Minister of Finance, Dr. Mwigulu Nchemba, emphasized the Tanzanian government's commitment to fostering the use of digital financial systems as a way to transition from cash-based transactions to a more modern, technology-driven economy.
His remarks came on March 6, 2025, during the official opening of the Gilman Rutihinda Memorial Lecture at the Bank of Tanzania headquarters in Dar es Salaam.
This lecture was held in honor of the late Gilman Rutihinda, the former Governor of the Bank of Tanzania, who passed away in 1993, and who played a significant role in transforming Tanzania's financial sector.
Dr. Nchemba noted that the government’s ongoing efforts are aligned with the global shift towards digital finance, a move aimed at reducing reliance on cash and embracing digital platforms for transactions.
He stressed that this transition is crucial to keep pace with the ongoing technological advancements and to make financial services more accessible and efficient.
“It is the government's goal to ensure that more people use digital methods for financial services, including conducting business, making payments, purchasing goods, and ordering products online,” Dr. Nchemba remarked.
He explained that the digital economy offers a range of benefits, including convenience, cost-efficiency, and reduced risk associated with carrying cash.
With the increasing availability of mobile phones and internet connectivity, digital finance provides an opportunity to reach a broader demographic, including those in remote areas who might not have access to traditional banking services.
The finance minister also praised Governor Rutihinda’s pioneering work in the development of Tanzania’s modern financial sector.
Dr. Nchemba acknowledged that the late Governor Rutihinda played a crucial role in implementing financial reforms that made Tanzania's financial system more independent and market-driven.
His efforts laid the foundation for the modern economic framework that the country continues to build upon.
“Governor Rutihinda’s reforms spurred innovation, inclusivity, and sustainability, significantly enhancing competition within the financial sector, expanding access to financial services, and ensuring stability,” said Dr. Nchemba.
These reforms have proven to be foundational, making it possible for Tanzania to adopt new digital technologies that can further empower citizens and businesses to access services efficiently.
In addition to the government’s push for digital financial systems, Dr. Nchemba mentioned that the government is in active dialogue with other stakeholders in the digital economy to reduce the costs of services.
The aim is to make digital solutions more attractive to the public, especially for individuals who have traditionally relied on cash.
By reducing the costs associated with digital transactions, the government hopes to encourage broader usage of these systems, thereby increasing efficiency, saving time, and minimizing risks.
In his welcome address, Mr. Emmanuel Tutuba, the Governor of the Bank of Tanzania, reflected on the importance of the Gilman Rutihinda Memorial Lecture as a moment to reflect on the challenges and opportunities facing the financial sector in Tanzania today.
He highlighted that while the country has made significant strides in financial inclusion, cash transactions still dominate the economy.
It is estimated that approximately 90% of economic transactions in Tanzania are still cash-based, a statistic that reflects the deep-rooted reliance on physical money.
Mr. Tutuba emphasized that the shift from cash to digital finance is not just a matter of convenience but a necessity for the future of Tanzania’s economy.
He noted that the move towards digital financial systems is crucial for enhancing the resilience, stability, and inclusiveness of the financial sector.
He believes that reducing the use of cash will increase efficiency, improve transparency, and expand access to financial services, particularlyTanzania Pushes for Digital Finance to Boost Economic Growth
The Minister of Finance, Dr. Mwigulu Nchemba, has reaffirmed the government’s commitment to promoting the use of digital financial systems, moving away from traditional cash-based transactions.
Speaking on March 6, 2025, during the opening of the Gilman Rutihinda Memorial Lecture at the Bank of Tanzania headquarters in Dar es Salaam, Dr. Nchemba emphasized the importance of adopting digital finance as part of Tanzania’s ongoing economic modernization.
"It is the government’s goal to ensure that more people use digital methods for financial services, including conducting business, making payments, purchasing goods, and ordering products online," Dr. Nchemba stated.
He highlighted that the shift toward digital financial services is essential to keep up with global technological advancements and offer more convenient, efficient, and safer alternatives to cash transactions.
Dr. Nchemba praised the late Gilman Rutihinda, former Governor of the Bank of Tanzania, for his pioneering work in shaping the country’s modern financial sector.
Rutihinda, who passed away in 1993, played a vital role in transforming Tanzania’s financial system into a more independent and market-driven structure.
"Governor Rutihinda’s reforms spurred innovation, inclusivity, and sustainability, significantly enhancing competition within the financial sector, expanding access to financial services, and ensuring stability," said Dr. Nchemba.
The government, Dr. Nchemba explained, is actively engaging with stakeholders in the digital economy to lower the cost of services, aiming to make digital financial systems more attractive to the public.
"By reducing the costs associated with digital transactions, we hope to encourage broader usage, improving efficiency, saving time, and minimizing risks tied to carrying cash," he said.
Mr. Emmanuel Tutuba, the Governor of the Bank of Tanzania, also spoke during the event, reflecting on the legacy of Governor Rutihinda and the future of Tanzania’s financial sector.
He pointed out that although the country has made progress in financial inclusion, cash transactions still dominate the economy.
"It is estimated that 90% of economic transactions in Tanzania are still cash-based. The shift from cash to digital finance is not just a matter of convenience; it is a necessity for the future of Tanzania’s economy," said Mr. Tutuba.
He added that the transition to digital finance would not only increase efficiency and transparency but also expand access to financial services, particularly for underserved communities.
"Reducing the use of cash will enhance efficiency, improve transparency, and broaden access to financial services for those who have been left behind in accessing formal financial services," he explained.
The 9th Gilman Rutihinda Memorial Lecture carried the theme Encouraging Change Towards a Digital Economy: Opportunities for Innovation and Inclusive Financial Services, emphasizing the role of digital finance in fostering economic growth and financial inclusion.
The government’s continued push to embrace digital financial systems reflects its broader vision for a modern, resilient, and inclusive economy.
As Tanzania works towards creating a more inclusive financial ecosystem, the digital shift offers numerous opportunities for innovation and greater access to services that can benefit businesses and individuals alike.
With ongoing efforts to reduce costs and increase efficiency, Tanzania’s digital economy is poised for significant growth in the coming years. for communities that have been historically excluded from the formal financial system.
The 9th Gilman Rutihinda Memorial Lecture, which carried the theme Encouraging Change Towards a Digital Economy: Opportunities for Innovation and Inclusive Financial Services, underscored the importance of digital finance in driving economic transformation.
The government, in collaboration with various stakeholders, aims to create a more inclusive financial ecosystem that will benefit individuals, businesses, and the economy at large.
As Tanzania continues to embrace technological advancements in financial services, the future looks promising for the country’s digital economy.