Tanzania’s fintech sector is experiencing a rapid advancement, driven by a combination of increasing mobile phone penetration, the introduction of innovative financial tools, and a regulatory environment that is supportive of these endeavors. Mobile services companies, such as Vodacom’s M-Pesa and Airtel Money, have initiated a revolution in the financial sector by introducing mobile money services. These services have extended financial access to millions of individuals who were previously either completely unbanked or severely underbanked.
The surge in the use of mobile money has subsequently sparked a wave of innovations in digital payments, loans, and savings platforms. This has further broadened the scope of financial services available to the average Tanzanian, creating a more inclusive financial landscape. In this growth story, the Tanzanian government and the Bank of Tanzania have played a pivotal role by formulating and implementing policies that promote both financial inclusion and innovation. These policies have created a conducive environment for the fintech sector to flourish.
Furthermore, the thriving tech environment in urban centers like Dar es Salaam is serving as a fertile ground for startups to create and scale new fintech solutions. The innovative energy in these cities is attracting attention and investments from both local and foreign investors, which is further stimulating the growth of the sector and contributing positively to the overall economy.
Owing to these developments, Tanzania is quickly emerging as a significant player in the African fintech industry. Its success story has the potential to serve as a blueprint for other emerging economies that are looking to leverage technology to boost financial inclusion and stimulate economic growth.
Tigo
Tigo, a leading telecommunications provider in Tanzania, has effectively broadened its presence in the fintech sector, becoming a noteworthy contributor in the realm of financial technology. Tigo has utilized its extensive mobile network and technological proficiency to introduce ground-breaking financial solutions that are reshaping the way Tanzanians handle their finances.
Tigo Pesa, a mobile money platform that was launched in 2010, is central to Tigo’s fintech services. It has become one of the most popular financial services in Tanzania, facilitating a variety of financial transactions via mobile phones. These include money transfers, bill payments, airtime purchases, and bank account transfers. The user-friendly and widely accessible platform has notably increased financial inclusion, especially among those without access to traditional banking services.
Tigo has continuously broadened its fintech services beyond basic mobile money offerings to incorporate more advanced financial products. Tigo Pesa now provides savings and loan services, enabling users to save money and secure microloans directly through their mobile wallets. This has offered a vital financial resource for numerous individuals and small businesses, helping them manage their finances, invest in growth, and enhance their overall financial stability.
Jamii
Jamii, a pioneering fintech company in Tanzania, is known for its essential service: providing accessible and affordable health insurance. Founded with the aim of making healthcare available for low-income communities, it leverages mobile technology to offer micro-health insurance, thus transforming the way Tanzanians access and manage healthcare.
Many Tanzanians do not have affordable health insurance, which exposes them to significant healthcare expenses. Jamii steps in to solve this problem by offering affordable health insurance plans that are both practical and easily accessible. The company works in tandem with insurance providers and healthcare facilities to ensure comprehensive coverage for necessary health services.
The unique strength of Jamii is its extensive use of mobile technology. Users can purchase and manage their health insurance policies right from their mobile phones. Given the widespread use of mobile phones in Tanzania, including remote areas, this strategy is particularly effective. By simplifying the registration process and eliminating heavy paperwork, Jamii has made health insurance accessible to a larger population.
Umoja
Umoja, a pioneering fintech company in Tanzania, is advancing the cause of financial inclusion for groups often left out. By leveraging cutting-edge technology and innovative methods, Umoja aims to provide reliable, affordable, and user-friendly financial services to individuals and businesses typically ignored by traditional banks.
In Tanzania, a significant portion of the population does not have access to basic financial services such as savings, credit, and insurance. Umoja addresses this gap by offering a range of digitally-based financial solutions, customized to meet the unique needs of these communities. Their platform facilitates seamless financial transactions, thereby promoting economic autonomy and stability.
The digital wallet platform is at the core of Umoja’s offerings. This mobile service lets users securely hold, send, and receive money via their smartphones. It integrates with prevalent mobile money services, ensuring wide-ranging accessibility and ease of use. Users can pay bills, transfer funds, and shop at affiliated outlets, making financial management easier. Recognizing the crucial role of credit for individuals and small businesses, Umoja offers microloans on its platform. These loans are structured to be affordable and readily accessible, with flexible repayment schedules that accommodate the financial capabilities of low-income borrowers.
Nala
Nala, a fintech startup specializing in money transfers, aims to revolutionize the traditional remittance industry, which often relies on offline transactions or physical money. To increase efficiency, affordability, and accessibility, Nala uses cutting-edge technology and works closely with local communities. The Nala app allows users from the UK, US, and EU to quickly and securely send payments to several African countries, including Kenya, Uganda, Tanzania, and others.
Nala has become a key player in the African remittance industry and is known for its rapid growth and strategic expansion. In 2023, the company entered the European market, making it possible to send remittances from 19 European countries to Africa. This expansion was accompanied by a range of product improvements, such as the introduction of ApplePay and Google Pay, to facilitate payments from the US and UK to Africa.
Nala is currently developing Rafiki, its own payment platform. Rafiki will support not only Nala’s consumer fintech app but also international companies making payments to and from Africa, giving Nala a chance to break into the business payments processing industry.
Tembo
Tembo is a dynamic and innovative fintech company that provides a diverse array of APIs and SDKs. These technologically advanced tools empower companies to seamlessly incorporate and initiate a broad spectrum of financial services throughout the expansive continent of Africa. These services include, but are not limited to, payments, collections, card services, digital wallets, and programmable bank accounts.
In addition to these offerings, Tembo also operates a groundbreaking application known as Temboplus. This application is specifically designed to assist users in achieving their financial savings targets. It offers a user-friendly interface which allows users to create numerous savings goals, contribute to these goals effortlessly via a plethora of payment methods, receive regular notifications to maintain their progress, and even invest in money market funds, thus opening up avenues for potential savings growth.
Tembo has not only made a mark in the industry but has also received recognition from regulatory authorities. The company has been certified by the Bank of Tanzania as a payment service provider. This certification is a testament to their credibility and standard of services. But the company’s reach does not stop there. It has also received regulatory consent to operate in various other countries, including Tanzania, Rwanda, and a few more. At the moment, the company is focused on extending its presence in East Africa, with plans in the pipeline to expand its services to West Africa in the near future, thus broadening its impact and reach.
Ramani
Established in the year 2019, Ramani is a cutting-edge software platform that is designed with the primary objective of assisting resellers in amplifying their sales visibility. It also serves as a gateway to a variety of financial services. The platform tackles the challenges that stem from fragmented supply chains and a lack of sufficient data transparency, providing comprehensive solutions for these common business problems in Tanzania.
Central to Ramani’s strategic approach is its innovative cloud-based ecosystem. This unique system seamlessly connects brands, micro-distribution centres (MDCs), and merchants by utilizing a sophisticated supply chain management software. This multi-faceted platform consists of a point-of-sale (POS) application that has been specifically designed for MDCs. It is further enhanced by a web dashboard that presents a complete and detailed view of sales data along with inventory management features.
Not just limited to improving supply chain transparency, Ramani also extends its services to the financial domain. Ramani’s Finance division offers an array of financial services to resellers. These include providing credit for inventory purchases. This facility, backed by a lending license from the Bank of Tanzania, underlines Ramani’s unwavering commitment to supporting resellers and fostering financial inclusion within the supply chain ecosystem.
Swahilies
Swahilies is an emerging player in Tanzania’s digital payment landscape, crafting tailored payment solutions for businesses across Africa. Their mission is to streamline payment processes and foster financial inclusivity. The company offers a multifaceted platform that allows businesses of all sizes to accept digital payments from a variety of sources, such as mobile money and card payments. Through its mobile applications, websites, and APIs, Swahilies equips businesses with the tools needed to integrate digital payments smoothly into their operations. This integration enables companies to receive payments quickly and securely, avoiding the complexities of traditional payment methods.
Additionally, Swahilies’ platform provides small and medium-sized enterprises (SMEs) with business management tools and access to a range of financial services, including credit and banking services. At present, Swahilies serves over 10,000 SMEs in Tanzania. The company is focused on improving its use case and solidifying its footing in its home country before branching out into other African markets.
