Tanzania is facing a critical need to accelerate the shift of small and medium-sized enterprises (SMEs) toward cashless operations, according to recent findings.
A 2024 report by the Financial Sector Deepening Trust reveals that 68 percent of Tanzanian SMEs still rely on manual record-keeping, while only 27 percent have adopted formal digital payment systems.
This reliance on cash not only limits efficiency but also hinders business growth, financial transparency, and access to credit.
Jacob Mosenda, a senior journalist with The Citizen, notes that the slow adoption of digital tools reflects broader challenges in financial literacy, digital infrastructure, and trust in electronic payment platforms.
Experts argue that accelerating the cashless transition is critical for Tanzania’s economic competitiveness, particularly as regional trade and supply chain integration expand.
Leveraging mobile money platforms, digital wallets, and bank-led payment solutions could help SMEs reduce transaction costs, streamline operations, and attract investment.
Government initiatives, supported by institutions such as the Bank of Tanzania and private sector associations, are encouraging SMEs to adopt digital solutions.
Training programs, subsidies for point-of-sale systems, and incentives for digital record-keeping are among strategies being promoted to facilitate this transformation.
As Tanzania aims to modernize its financial landscape, the success of SMEs in adopting cashless systems will play a crucial role in boosting productivity, formalizing the economy, and fostering inclusive growth.
