by Ben Taylor
Rapid growth in mobile internet access, and mobile money
The Tanzanian Communications Regulatory Authority (TCRA) has reported rapid growth in internet access in recent years, driven primarily by the use of mobile phones. The latest Communication Statistics Report, covering January to March 2025, reveals that internet service subscriptions have grown to 49.3 million, close to double the figure from December 2020 (25.2 million).

Mobile broadband (defined as 3G and above) leads with 27 million subscriptions, while a further 22 million depend on 2G subscriptions. Around 230,000 have fixed-line internet subscriptions. Many users may have more than one subscription.

According to the report, the improved connectivity is driven by significant infrastructure upgrades, and is reshaping the country’s social and economic landscape. The report shows that the population living in areas covered by 3G networks grew to 92.2%, while 4G coverage increased to 91% percent, and 5G coverage rose to 23%.

Meanwhile, a Bank of Tanzania Report covering payment systems in 2024 reported that the value of mobile money payments rose by 29% compared to 2023, which itself had seen a 35% rise above 2022 figures. The total value of mobile money payments in 2024 is reported as TSh 198.9 trillion (approx. GBP £55 billion), up from TSh 114 trillion in 2022. Dr Tobias Swai of the University of Dar es Salaam said one of the most significant benefits of Tanzania’s digital payment boom is the impact on financial inclusion. He said digital platforms have allowed millions of people, especially in rural areas, to access financial services without the need to visit a physical bank branch. “This shift is making financial services more accessible and convenient for people across Tanzania,” Dr Swai said.

For context, Tanzania’s GDP in 2024 is estimated at USD $79 billion (approx. GBP £59 billion.) The mobile money sector’s total transaction value being close to or exceeding Tanzania’s GDP in 2024 underscores its critical role in the economy. However, the high proportion likely reflects the rapid circulation of funds, where the same funds are transacted multiple times within a year, inflating the total value relative to GDP, rather than mobile money directly contributing an equivalent amount to economic output.