LocationsUnlocking Cross-Border Digital Payments for Inclusive Trade in Tanzania
March 31, 2026
UNDP Tanzania
In East Africa, thousands of small-scale traders cross borders every day—yet the payments that sustain their businesses remain largely cash-based, costly, and unreliable. In response, a national dialogue held in Dar es Salaam, Tanzania brought together public and private sector actors to address a critical challenge: making digital payments work for small-scale traders operating across borders.
Led by the Bank of Tanzania in collaboration with UNDP Tanzania and the Better Than Cash Alliance, the dialogue focused on strengthening digital payment solutions for micro, small, and medium enterprises engaged in cross-border trade within the East African Community.
The discussions built on insights from a scoping mission conducted across key border points—including Namanga, Mutukula, and Rusumo—as well as major trade hubs such as Arusha, Bukoba, and Mwanza. These engagements highlighted persistent barriers, particularly for women and youth traders, and informed a set of priority actions.
Despite the expansion of digital financial services, cross-border transactions remain largely cash-based. High and often unclear transaction costs, limited interoperability between payment systems, foreign exchange challenges, and unreliable transactions continue to drive reliance on informal channels.
Opening the dialogue, Sauda Msemo, BOT Deputy Governor responsible for financial stability and advancing financial inclusion underscored the urgency of accelerating progress:
“Our shared goal is to build a payment system that is interoperable, accessible, affordable, and trustworthy—one that enables cross-border transactions to take place more easily while advancing regional economic integration.”
Sauda Msemo, Deputy Governor of the Bank of Tanzania, calls for accelerated progress in cross-border digital payments during the national dialogue in Dar es Salaam.
For many traders, these challenges are immediate. Cash transactions expose them to security risks and inefficiencies, while unreliable digital systems undermine trust. Women traders face additional constraints, including limited access to credit and collateral, further limiting their participation in formal financial systems.
The dialogue focused on identifying practical priorities to make digital payments more transparent, affordable, and easier to use—anchored in solutions that respond to the realities of traders.
“This is about development outcomes, not technology,” said John Rutere, UNDP Deputy Resident Representative. “When payments are reliable and transparent, traders lose less time, face fewer risks, and can grow their businesses.”
John Rutere, UNDP Deputy Resident Representative, emphasizes the importance of reliable and transparent digital payments for traders during the national dialogue in Dar es Salaam.
Tanzania’s existing digital infrastructure provides a strong foundation for advancing cross-border digital payments. The next phase will focus on translating dialogue into action—through targeted interventions at border points and coordinated implementation across stakeholders.
By aligning policy, systems, and partnerships—and grounding solutions in the realities of traders—Tanzania is laying the foundation for more inclusive, efficient, and connected cross-border trade across the region.
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