The government has stepped up efforts to make digital financial services more affordable and accessible, as part of a broader strategy to expand financial inclusion and support the country’s growing digital economy.
Finance Minister Khamis Mussa Omar told Parliament in Dodoma that the government, through the Bank of Tanzania, has been implementing a range of measures to reduce the cost of mobile money transactions while improving the efficiency and reliability of payment systems.
The minister was responding to a question from Kinondoni Member of Parliament Tarimba Gulam Abbas, who sought to know why the government does not introduce indicative pricing to regulate mobile money charges and ease the cost burden on citizens.
Omar said the government has chosen a market-driven approach, focusing on strengthening regulatory frameworks, improving payment infrastructure and encouraging competition among service providers rather than fixing uniform transaction charges.
He said that in 2024, the central bank introduced a cap on transaction fees under instant payment systems and the Tanzania Automated Clearing House (TACH), setting a maximum charge of TZS 2,000 per transaction.
The reforms were extended in 2025, when the Bank of Tanzania reduced charges for digital transfers between mobile wallets and bank accounts through the Tanzania Instant Payment System (TIPS), which allows real-time transfers across platforms.
Under the current structure, transaction fees are capped at TZS 5,000 for transfers above TZS 500,000, while lower-value transactions are subject to a tiered pricing framework designed to keep costs affordable for users.
Omar said increased competition in the sector is also playing a key role in driving down costs. As of March 2026, the Bank of Tanzania had licensed 113 payment system service providers, creating a more competitive and innovative digital payments landscape.
He said the government will continue to work closely with industry players to review transaction costs and introduce further improvements where necessary, while ensuring the safety and stability of the financial system.
The measures signal Tanzania’s continued shift towards a digital economy, with affordable financial services seen as a critical tool in empowering citizens, boosting business activity and improving access to formal financial systems.
