DAR ES SALAAM, Dec 27 (AGCNewsNet) – Tanzania’s Bank of Tanzania (BOT) has announced the elimination of charges on debit, credit, and prepaid card payments at point-of-sale (PoS) machines, in a move aimed at promoting digital transactions and advancing the country toward a cash-lite economy.

Merchants have been instructed to comply strictly with the new directive, with penalties awaiting violators, according to a statement by BOT Governor Emmanuel Tutuba. The initiative aligns with Tanzania’s strategy to enhance digital payment adoption, which offers benefits such as greater transparency, efficiency, and convenience.

This policy shift comes as Tanzania’s economy continues to grow, with sectors such as manufacturing, tourism, and financial services driving a forecasted 6% GDP growth, according to the World Bank.

Data shows the nation’s digital payments market is expected to reach $4.43 billion in 2024, with PoS transactions comprising the largest segment. Digital payments adoption in Tanzania stands at 48%, ranking eighth in Africa, following leading nations such as Kenya (75.8%) and South Africa (70.5%).

The country’s rise in digital payments adoption aligns with increased access to mobile phones, which grew from 63% in 2017 to 75% in 2024. Similarly, formal financial inclusion has improved, with access to banking services rising from 17% to 22% during the same period.

Other African countries with high digital payment adoption rates include Ghana (63.7%), Gabon (62.3%), and Namibia (58.5%). Tanzania’s progress underscores its commitment to becoming a leader in digital financial inclusion on the continent.

As digital payments gain momentum in Tanzania, the BOT’s efforts highlight a broader trend across Africa toward embracing cashless economies for enhanced financial accessibility and efficiency.

Stay connected with AGC NewsNet for the latest news from Africa