Transition to Mandatory Digital Payments in Tanzania

TLDR

• The Electronic Transactions (Mandatory Electronic Payments for Specified Transactions) Order, 2026, that took effect on July 1 this year, prohibits cash payments for a range of transactions such as public transport.
• The reform represents a notable shift from encouraging digital payments to making them mandatory.
• Implementing mandatory electronic payments generates digital transaction records, making it easier for tax authorities, regulators and financial institutions to track economic activity.
• Tanzania is a frontrunner in mobile money adoption in Africa, with millions of people regularly using digital wallets for transfers and bill payments.
• Tanzania’s requirement for digital payments in various sectors is establishing a foundation for wider digital transformation.