Mobile money consolidates financial inclusion in Tanzania

TANZANIA: MOBILE money transactions in Tanzania increased by 30 per cent between the quarter ending September and December last year and by 44 per cent from January to December 2023.

This reflects exponential growth of financial inclusion in the country, the Tanzania Communications Regulatory Authority (TCRA) current statistical report has revealed.

TCRA Director General, Dr Jabiri Bakari said in the Authority’s October-December 2023 quarterly performance report that mobile money service subscriptions (number of accounts) increased from 51,369,347 at the quarter ending September to 52,875,129 at the end of December.

Total number of transactions increased from 526,245,314 at the quarter ending September to 549,529,470 transactions in December 2023.

The report shows that there were 42,120,445 accounts, with 380,561,622 transactions in January 2023.

TCRA assigns and licences the short codes such as *150*# used for financial transactions and other value–added services. The Bank of Tanzania (BoT) regulates the financial sector.  Dr Bakari said that these institutions have a Memorandum of Understanding (MoU) on digital financial services.

He said a programme on universal broadcasting services is underway to improve broadcasting infrastructure in remote mountainous areas with harsh terrain.

TCRA and the Universal Communications Service Access Fund (UCSAF) have identified ten areas, where broadcasting infrastructure would be developed, through subsidies, he added.

According to Dr Bakari, the move is in tandem with the programme to launch Tanzania’s first satellite for broadcasting services. The country secured an orbital position for the satellite at the World Radio-communication Conference (WRC23) held in Dubai in December 2023, Dr Bakari said.

The deployment of a broadcasting satellite will overcome the limitations of terrestrial systems affecting the reception of radio content in topographically- challenged areas such as Rombo in Kilimanjaro region.

Tanzania was also awarded additional frequencies in the 3600-3800 MHz range, set to push the fifth generation of mobile technology (5G). These frequencies have the potential to transform internet speed significantly, enhance the reach of the mobile network, and drive economic growth by fostering digital communication advancements.

The report shows that basic mobile phones enabling voice calls and messages (second generation or 2G) have penetrated 98 per cent of the population, while devices with voice, messaging and data capabilities (third and fourth generation, respectively) have reached between 79 and 86 per cent of the population.

The report shows a sharp drop in fraudulent mobile calls and messages from two (2) per cent of registered SIM cards in September 2022 to 0.1 per cent in December 2023, indicating the effectiveness of the TCRA-led campaign on responsible use of communications services.

The report paints two pictures of the performance of the postal sector, with reported increases in parcels and items handled by the public postal operators – the Tanzania Posts Corporation (TPC) and private courier companies. The volume of items posted abroad increased from 239,239 to 243,199 and those received from abroad fell from 616,225 to 261,983.

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