Tanzania, The $200 billion fintech market known for Zanzibar, Kilimanjaro and the Serengeti.
By the end of the Century, Tanzania's top city, Dar es salaam, will be more important than Dubai and become one of the 3 key cities for global trade, commerce and travel.
Introduction.
Leading from Dar es Salaam, Tanzania is rapidly emerging as one of Africa’s rising stars in the fintech space, leveraging its global prominence in the mobile money revolution. While celebrated for its breathtaking landscapes—Mount Kilimanjaro, the paradise-like Zanzibar, and the iconic Serengeti National Park—the country is increasingly gaining recognition for its expanding financial technology (fintech) ecosystem. The true opportunity lies ahead, projected to reach $200 billion across both consumer-led and business-led segments.
It is proven to be a lucrative market for mobile money, profitable for fintechs and even banks are making billions in fees and charges, This dynamic economy, fueled by Tanzania’s strategic location and growing influence in East Africa, is setting the stage for a fintech revolution. As Dar emerges as a center of trade, commerce, and digital finance, fintech players have a unique opportunity to tap into the expanding market.
Tanzania’s $200 Billion Payments Opportunity.
Learning from Tanzania National payments report by the Central Bank of Tanzania, GSMA and some World bank reports, The Tanzanian payments landscape is undergoing a transformation, driven by mobile money, merchant payments, cross-border transactions, digital banking and B2B commerce. The market is currently and roughly valued around $200 billion, split into two key sub segments:
Consumer-led payments: $68 billion
This part includes the majority of mobile money payments, card payments and P2P payments, it covers bills, utility payments, consumer to government payments, consumer to business payments
Business-led payments: $132 billion
This segment of the market covers domestic and cross-border business to business payments, business to consumer and business to government payments.
With the combination of mobile-first consumers and digitising businesses, Tanzania is poised for fintech-led growth across the entire payments ecosystem.
1. Consumer-Led Payments: A $68 Billion Ecosystem.
The consumer payments sector is flourishing, driven primarily by the country's mobile-first economy. Mobile money is the cornerstone of this growth, offering millions of Tanzanians easy access to financial services.
a) Remittances & Cross-Border via MNOs: $0.7 Billion.
Cross-border remittances and transfers via Mobile Network Operators (MNOs), such as M-Pesa, Tigo Pesa, and Airtel Money, contribute $0.7 billion. These services provide critical financial support for Tanzanian families, ensuring a seamless flow of funds from abroad.
b) Merchant Payments: $11 Billion.
Valued at $11 billion, the merchant payments market is driven largely by mobile money, with point-of-sale (POS) systems and card transactions also playing a role. Two-thirds of merchant payments are handled through mobile money platforms, a testament to the country's high mobile penetration and the increasing use of digital solutions for retail and service payments.
c) Mobile Money Transactions: $62 Billion.
The mobile money market in Tanzania is among the most advanced in the world, with $62 billion in transactions. Mobile money has become an indispensable part of daily life for many Tanzanians, facilitating everything from peer-to-peer transfers to bill payments and business transactions. Its convenience, accessibility, and trustworthiness are key reasons for its dominance in the market.
2. Business-Led Payments: Dominating with $132 Billion.
The business-led payments sector makes up the bulk of Tanzania’s payments market, driven by cross-border transactions, domestic B2B commerce, and digital banking infrastructure.
a) Cross-Border Payments via Banks: $58 Billion.
With $58 billion in B2B cross-border payments, Tanzania is increasingly integrated into global and regional trade. As businesses in sectors like logistics, tourism, and manufacturing expand, cross-border transactions will continue to grow, creating further demand for innovative payment solutions.
b) TACH & TIPS (Cheques and Account-to-Account Transfers): $25 Billion.
The Tanzania Automated Clearing House (TACH) and Tanzania Instant Payment System (TIPS) process $25 billion in high-value transfers. These systems are vital for large corporate payments, interbank settlements, and government-related transactions, making Tanzania a leader in digital clearing solutions.
c) Domestic B2B and B2C Payments: $49 Billion.
An additional $49 billion flows through bank-led B2B transfers, corporate remittances, corporate cards, and business settlements. As more businesses digitize their operations, the B2B payments market is positioned to grow rapidly, offering immense opportunities for fintech companies looking to streamline and innovate corporate payment processes.
3. The Future of Tanzania’s Payments Market: A $200 Billion Opportunity.
The total market potential is estimated at $200 billion, presenting vast opportunities for fintechs, banks, and other financial service providers. With $68 billion driven by consumer-led activities and $132 billion from business-led transactions, the scope for growth and innovation is enormous.
Consumer-Led Payments: Mobile money, remittances, and merchant payments dominate this space, offering fintechs room to scale by improving digital financial services, expanding mobile money usage, and driving financial inclusion across urban and rural areas.
Business-Led Payments: Tanzania’s increasing role in B2B cross-border trade and domestic business payments presents an ideal environment for innovation in digital payment solutions, making it the perfect time for fintechs to introduce seamless and efficient business transaction platforms.
Dar es Salaam: Africa's Future Financial Hub: By the end of the century, Dar es Salaam is expected to be more than just a major city; it is set to rival Dubai as a global financial and trade center. Tanzania’s strategic location, coupled with its growing economic influence, will cement its role as the gateway to East Africa and a key player in global commerce.
As more consumers and businesses adopt digital payment solutions, Tanzania is positioning itself as a regional and continental leader in fintech innovation.
Why The Time to Act Is Now: Tanzania's fintech ecosystem is at an inflection point. With a rapidly growing market and increasing demand for both consumer and business payment solutions, the country offers immense opportunities for fintech companies, banks, and payment service providers to build the future of digital finance.
Whether through mobile money, B2B transactions, or instant payment systems, the opportunities in Tanzania’s payments landscape are vast. The time to capitalize on this $200 billion market is now, and those who act quickly will be positioned to lead the next wave of Africa’s financial transformation.
Conclusion
In conclusion, Tanzania is not only showcasing its stunning landscapes but is also rapidly transforming into a formidable player in the fintech landscape. With a payments market valued at $200 billion, the combination of consumer-led and business-led segments presents unparalleled opportunities for innovation and growth.
The mobile-first economy, underpinned by robust mobile money systems and a growing digital infrastructure, is driving significant changes in how Tanzanians conduct transactions. As the demand for efficient payment solutions increases, fintech companies have a prime opportunity to fill existing gaps and enhance the financial experience for millions.
As Dar es Salaam positions itself as Africa’s future financial hub, the urgency for action is clear. Those who seize the moment now, leveraging Tanzania's unique strengths and addressing the evolving needs of consumers and businesses, will not only lead the charge in the payments revolution but also contribute to the broader financial transformation across the continent. The time to invest in Tanzania’s fintech potential is now—let's shape the future of digital finance together.
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There are questions on how the fintech opportunity is bigger than the GDP of Tanzania, Many people do not know this, Total Payments values are always bigger than the country's GDP. Look at China, Kenya, US and Even Tanzania
A very confusing and wholly unrealistic analysis with mixed metaphors taking centre stage.
Of course Kilimanjaro is a true global leader - in fact it is the highest stand alone mountain in the whole world and fourth highest overall. The TZ economy on the other hand lurks around number 100 in the global table.Per capital GDP is less than $1,500 per annum with the global average at least ten times higher. Extrapolating the value of Fintech biz as if it stands beyond the constraints of the local economy is cloud cuckoo land mathematics