BoT Encourages FinTech to Improve Financial Inclusion and Reduce Fraud

Dar es Salaam – Bank of Tanzania (BoT) is calling for stronger adoption of Financial Technology (FinTech) to tackle fraud in the digital finance sector and promote financial inclusion across East Africa. Speaking at the East Africa Investment Forum, Mr. Kennedy Komba, Director of Financial Deepening and Inclusion, emphasised that East Africa has great potential to be a FinTech innovation hub. Despite 95 per cent of Tanzanians having access to mobile money and digital financial services, effective usage is still limited due to trust issues and fraud, with over 5 per cent of traders experiencing losses. Mr. Komba highlighted that translating digital access into real economic growth remains the key challenge. The forum also discussed investment trends, noting that African startups raised nearly 1.4 billion USD in the first half of 2025, with FinTech receiving close to 638 million USD. Investors are now focusing on scalable, profitable models rather than copying existing ones. Regional integration and harmonisation of digital markets are essential to overcome fragmented regulations and improve cross-border services. Notable steps include Kenya-Rwanda licensing agreements and regional digital integration projects. Policy priorities identified include creating financial products for irregular incomes, enhancing consumer protection to build trust, and harmonising regulations across East Africa. Industry leaders like Vodacom Tanzania Foundation and TAFINA highlighted the importance of resilient infrastructure and purposeful technology to transform lives, referencing the success of M-PESA over the past 18 years.