Through the Finance Act 2022, the government of Tanzania has introduced a further 43% reduction in the mobile money levy in Tanzania. The GSMA congratulates the Government of Tanzania and acknowledges this as a remarkable move by the Government in ensuring that mobile and mobile-enabled solutions are at the centre of Tanzania’s Digital Transformation agenda. This reduction in the levy will reduce the cost burden on consumers, therefore encouraging the use of mobile money services.
As evidenced in a report produced by the GSMA analysing the impact of the levy on Mobile Money services, it is clear that Mobile Money is a key driver of socio-economic growth, creating employment, driving business productivity, facilitating savings and facilitating investment, contributing to formalising the economy, and providing stability during economic downturns.
It is also the main driver of financial inclusion, contributing directly to Tanzania’s economic growth and social development objectives. As set out in Tanzania’s National Financial Inclusion Framework, “mobile money services have been the main driver in the provision of financial services to the under-served especially women and people living in rural areas”.
The benefits of this positive impact will be realised across various sectors of the economy and will lead to a boost in Tanzania’s GDP; a key measure of economic growth.
The GSMA urges other governments in the Sub-Saharan Africa region to emulate this and reduce sector-specific taxes in order to accelerate digital and financial inclusion in the region.