Mobile phones boost financial inclusion in Tanzania

Paul Adepoju

10 years ago

The advent of mobile devices has greatly improved financial inclusion in Tanzania, according to the country’s apex bank, the Bank of Tanzania

It said agent banking and mobile phone transaction are picking up while pushing up as demonstrated by increase the volume and value of transactions. Likewise, agency and mobile money have assisted financial sector penetration in the country to overtake its goal of reaching 50 per cent two years ahead of the deadline in 2016.

At the end of last year it posted a 55 per cent. The business, a new phenomenal in the country, defies all odds in the market to contracted 2,013 active agents who are facilitating 881, 327 deposits until the end of this April.

Tanzania’s Daily Times reported that the agents have controlled 503.1bn/- transactions in a way of deposits while withdrawal transactions valued at 75.5bn/-, showing a huge sum was saved in the banks accounts. On other hand, mobile payments have also continued to grow with estimated transactions averaging 116.8bn/- per day.

“This growth points to the potential of leveraging technology based delivery channels in increasing access to financial services with lower transactions cost,” Bank of Tanzania says.

“The sector also continued to be stable and sound as depicted by financial soundness indicators,” BoT says in June Monetary Policy Statement issued recently.