Tanzania Mandates TIPS for All Incoming International Money Transfers
The Bank of Tanzania (BoT) has announced that, effective August 1, 2025, all incoming international money transfers (IMTs) must be processed exclusively through its Tanzania Instant Payment System (TIPS). This directive marks a significant step towards centralising and modernising the nation’s payment infrastructure.
TIPS, an interoperable digital platform operated by the BoT, already facilitates real-time domestic payments between banks, mobile money operators, and other financial institutions; it has proved itself a robust system, having processed 453.7 million transactions valued at TZS 29.9 trillion in 2024. With a daily capacity of approximately 1.5 million transactions, the system is designed to handle significantly higher volumes.
Expanding its mandate to include international transfers aims to enhance financial inclusivity, speed up transactions, and standardise fees. A flat fee of TZS 1,000 (approximately $0.40 USD) will apply per transaction, payable by the sending party.
While the move promises greater regulatory oversight and faster settlements, concerns exist regarding the impact of the flat fee on small-value remittances, potentially pushing users to informal channels. The tight integration deadline for financial institutions also poses a risk of initial service disruptions.
Also, while there is window for fresh fin-techs to enter the market based on this new regulation, existing ones may face challenges if they do not innovate fast enough, and be forced out.
Tanzania’s approach is notably more centralised than those of its East African neighbours like Kenya, Uganda, and Rwanda, who use more diverse systems, allowing senders and recipients their choice of payment gateway. However, all four East African countries also leverage the East Africa Payment System (EAPS) for regional cross-border transfers. Tanzania’s TIPS stipulations will enhance the way the EAPS system works for it, rather than be in competition with it.
That said, TIPS signals Tanzania’s assertive, forward-thinking approach to the regulatory frameworks that govern digital money transfers.
