Mobile money users in Tanzania are going back to cash payments to avoid high transaction charges
- Tanzania introduced a levy on mobile money transactions, leading to a decrease in mobile money revenues.
- Mobile money revenues dropped by 1628% between June and August 2021.
- The tax's impact is estimated to result in a 30% reduction in person-to-person transactions and a 60% reduction in cash-out transactions.
The high taxes on mobile money services in sub-Saharan Africa, particularly in Tanzania and Kenya, have had a negative impact on financial inclusion and economic growth. The significant drop in mobile money revenues and transactions indicates that the taxes are deterring users and businesses from utilizing mobile money services. These taxes need to be reconsidered to ensure the continued growth and benefits of mobile money in the region.
