BoT Moves to Raise TZS5M Mobile Money Transaction Cap
The Bank of Tanzania (BoT) and the Ministry of Finance are evaluating proposals to review the current TZS5 million daily transaction cap on mobile money accounts, in response to widespread calls from traders, corporate entities, and digital financial service providers. The review comes amid growing recognition that existing regulatory limits no longer reflect the commercial reality of a rapidly digitalising economy, in which high-value business-to-business (B2B) and business-to-consumer (B2C) settlements are increasingly conducted over mobile rails rather than traditional banking channels.
The current restrictions on wallet balances and daily transfer limits were originally set to protect retail consumers and curb financial crime. However, as platforms such as M-Pesa, Tigo Pesa, and Airtel Money have evolved into essential operating infrastructure for enterprises, commercial stakeholders argue that rigid limits create unnecessary friction, slow supply chains, and compel businesses to rely on physical cash for larger trade settlements.
Balancing Commercial Agility & Financial Risk
Deputy Finance Minister Mshamu Munde recently confirmed in Parliament that financial regulators are assessing options to safely expand transaction limits. The central bank’s primary challenge is balancing expanded transaction limits to support trade velocity with measures to mitigate elevated risks of money laundering, terrorism financing, and digital fraud.
Key Objectives Under Consideration
Facilitating Enterprise Transactions: Enabling formal SMEs and micro-distributors to make higher-value procurement payments directly via commercial mobile wallets.
Strengthening Anti-Money Laundering (AML) Protocols: Linking higher transaction-tier limits directly to enhanced Know-Your-Customer (KYC) verification and real-time transaction monitoring systems.
Accelerating Cashless Integration: Reducing reliance on cash across wholesale distribution, agricultural produce trade, and cross-border commercial corridors.
To manage risk exposure, regulators are exploring tiered account structures that grant higher transaction thresholds based on verified tax registration (TIN), formal business licensing, and ongoing risk profiling.
Strategic Outlook for Digital Commerce
Business associations, including the Tanzania Private Sector Federation (TPSF), have welcomed the government’s willingness to review transaction ceilings. Increasing digital wallet liquidity is expected to reduce operating overheads for enterprises that currently incur additional bank transfer fees or experience operational delays when clearing merchant accounts.
Furthermore, expanding wallet thresholds aligns with Tanzania’s broader financial inclusion roadmap, which aims to integrate informal commercial flows into the formal financial sector without disrupting daily trade operations. As the BoT completes its technical risk assessment, the anticipated policy adjustment will mark a significant milestone in modernising Tanzania’s digital payment ecosystem and improving regional trade efficiency.