Regulatory AlertsTanzania: fintech & payments regulation
Partially regulatedBoT licenses MNOs for e-money; MFAs regulate digital lenders; no standalone VASP regime
- Lead regulator
- Bank of Tanzania
- Also involved
- CMSA (capital markets) · TRA (tax) · NFIU (AML)
- Core law
- National Payment Systems Act, 2015
- Entry capital
- TZS 20m (Tier 2 MFA)
- Approval timeline
- 3-6 months (MFA) · Indefinite (e-money)
- Customer assets
- Segregated trust account required
- Data protection
- Personal Data Protection Act, 2022 · PDPO
- Sandbox
- Yes - Capital Markets Regulatory Sandbox
Tanzania regulates digital finance through the Bank of Tanzania (BoT) under the National Payment Systems Act (NPSA) and the Microfinance Act (MFA). The BoT restricts e-money issuance to Mobile Network Operators (MNOs) and banks, effectively banning standalone e-money wallets. Digital lending is supervised by the BoT under the Tier 2 Microfinance Service Provider framework. Payment processing and remittance are conducted by licensed financial institutions or bureaux de change.
Which licence do you need?
| Your activity | Requirement | Capital | Timeline | Authority |
|---|---|---|---|---|
| Payment processing / gateway | LicencePayment Service Provider Licensed to banks and MFAs; no standalone gateway license | — | — | Bank of Tanzania |
| E-money & wallet issuance | RestrictedElectronic Money Issuer[1] Restricted to MNOs and banks; no new non-MNO licenses | — | — | Bank of Tanzania |
| Domestic money transfer | LicenceTier 2 Microfinance Service Provider[2][3] Digital lenders must register as Tier 2 MFAs | TZS 20m | — | Bank of Tanzania |
| Cross-border remittance | LicenceBureau de Change[4] Bureaux de Change handle cross-border FX/remittance | TZS 1m | — | Bank of Tanzania |
| Agent network | LicenceAgent Banking[2] Requires prior approval from licensed financial institution | — | — | Bank of Tanzania |
| Open banking / account information | Uncertainverify with regulator No specific open banking framework identified | — | — | — |
| Foreign-exchange services | LicenceBureau de Change[4] Tiered capital for FX bureaus | TZS 1m | — | Bank of Tanzania |
New — what changed recently
- 2025-01-01Zanzibar Microfinance Service Regulations — Established four-tier licensing framework for microfinance in Zanzibar under the 2023 Act.[5]
- 2024-09-04Capital Markets Regulatory Sandbox Regulations — Established a tailored testing framework for innovative capital markets fintech solutions.[6]
- 2024-01-01Guidance Note on Digital Lenders — Mandated Tier 2 MFAs to notify BoT of digital lending platforms and secure no-objection letters.[2]
Market-entry checklist
- 1Register as Tier 2 MFAIncorporate locally and maintain TZS 20m capital to operate digital lending or payment services.
- 2Secure BoT LicenseApply for Tier 2 Microfinance Service Provider license from the Bank of Tanzania.
- 3Register for AMLRegister with the National Financial Intelligence Unit (NFIU) for anti-money laundering compliance.
- 4Obtain TRA PINRegister with the Tanzania Revenue Authority for tax compliance and identification.
- 5Open Corporate AccountOpen a corporate bank account to hold statutory capital and operational funds.
Sources
- Restriction on Issuance of Electronic Money Licenses · 2020-12-18
- Guidelines on Agent Banking for Banks and Financial Institutions, 2017 · 2017-01-01
- Guidance Note on Change of Ownership, Lease of Licence and Closure of Business by Licensed Microfinance Service Providers (2025)
- The Foreign Exchange (Bureau de Change) Regulations 2023
- The Zanzibar Microfinance Service (Non-Deposit Taking Microfinance Service Providers) Regulations, 2025 · 2025-06-13
- Capital Markets and Securities (Regulatory Sandbox) Regulations 2024 · 2024-09-04