Tanzania mandates digital payments for key transactions

DODOMA: The government has introduced mandatory digital payments for a wide range of transactions as part of efforts to reduce cash usage and close loopholes for money laundering.

The requirement has been introduced through amendments to the Electronic Transactions Act (Cap. 442) and a new ruOrder specifying transactions that must be conducted electronically.

Speaking in an interview in Dodoma shortly after a training session for government lawyers on amendments introduced under the Finance Act, 2026, the Assistant Director in the Legislative Drafting Division at the Office of the Chief Parliamentary Draftsman (OCPD), Ms Chresencia Mathayo, said the move is intended to establish a secure and traceable payment system that will help curb money laundering.

Under the Order, she said, anyone making or receiving payments for the specified transactions is required to use digital payment methods.

“The use of digital payment methods makes it easier to track transactions, enhances the security of funds and helps close loopholes that can be exploited for money laundering, tax evasion and other financial crimes,” Ms Mathayo said.

According to the Order, recognised digital payment methods include mobile money, bank transfers, payment cards, point-of-sale (POS) machines, internet and mobile banking services, as well as government electronic payment systems.

Also read:

Ms Mathayo said the Order identifies a broad range of transactions that must now be conducted digitally.

These include the payment of school fees and fares for public transport services such as bus rapid transit (BRT), ferries, toll bridges, ride-hailing taxis, long-distance buses, air transport and railways.

Other transactions covered include payments at supermarkets, hotels and restaurants, tourism services, the rental and sale of buildings, farms and plots, the purchase and sale of motor vehicles, and payments made through cooperative unions and Agricultural Marketing Cooperative Societies (AMCOS) for strategic crops.

She added that the Business Licensing Regulations have also been amended to require applicants for new business licences, as well as those seeking licence renewals, to provide proof that they have a digital payment system or device, including Lipa Namba or TANQR.

“Business operators who do not have digital payment facilities will not be able to renew their licences once they expire until they comply with the requirement. This measure is intended to ensure that business transactions pass through formal financial systems,” she said.

Ms Mathayo noted that the reforms are aimed not only at improving revenue collection but also at reducing the costs and risks associated with handling cash, including the costs of storing and transporting money, as well as the risks of theft and loss.

The new measures officially came into effect on July 1, 2026, and members of the public, businesses and service providers have been urged to adopt the required digital payment systems for all transactions covered by the new regulations.

The post Tanzania mandates digital payments for key transactions appeared first on Daily News.