Tanzania seeks to emerge as fintech hub in East Africa

Tanzania is seeking to position itself as an emerging financial technology hub in East Africa, as mobile money, digital payments and a growing startup ecosystem continue to reshape access to financial services.

The seventh edition of the Tanzania Financial Technology Festival held in Dar es Salaam, brought together entrepreneurs, investors and technology professionals to explore the next wave of financial innovation and ways to unlock funding for startups.

The two-day festival attracted more than 8,000 fintech professionals from more than 83 countries. Organizers say the event aims to facilitate business deals worth up to $190 million.

Among those attending is entrepreneur Auni Mikidadi, who is exploring opportunities in the fintech sector after ventures in printing, real estate and goat farming.

Mikidadi said access to funding remains a challenge for fintech entrepreneurs, despite growing investor interest in the sector.

"You find a lot of funding for climate change. We have a lot of initiatives and funding for climate change here in Tanzania. But with fintech, there are some people providing funds, although access has been questionable," he said.

Investment firms, however, say funding is available for startups that can demonstrate strong business models and capable teams.

Allen Kazungu of Africapital said having a well-structured team can boost investor confidence and improve a startup's chances of securing funding.

"One of the biggest challenges we normally face is finding a well-structured team, and some startups do not have one at all," Kazungu said.

The push to grow Tanzania's fintech industry comes as the country's digital payments market continues to expand. 

The government says it is developing policies to support digital businesses while ensuring innovation remains fair and inclusive. ICT Minister Angellah Kariuki urged safeguards around AI-driven financial decisions to ensure access to credit is fair and transparent.

"As artificial intelligence becomes more influential in financial decision-making, we must ensure that automated decisions affecting access to credit are fair, transparent and accountable. Technology must not automate exclusion; it must expand opportunity," Kariuki said.