Fintech Map Tanzania: Homegrown Pure-Play Ventures Dominate Tanzania’s Fintech Ecosystem

Tanzania is residence to a rising fintech ecosystem, comprising 171 gamers working throughout funds, digital banking, lending, banking infrastructure, and extra, in accordance to new analysis by Cofounders Notebook, a weekly e-newsletter overlaying fintech and know-how in Africa.

Led by Reuben Mwatosya, Co-Founder and COO of Tanzania-based monetary infrastructure firm Tembo, Cofounders Notebook tackles tech-led companies, startups, enterprise capital (VC), and digital monetary companies with a heavy emphasis on East African markets.

Its Fintech Map of Tanzania, launched in July, provides a complete overview of the Tanzanian fintech ecosystem, figuring out, classifying and documenting fintech corporations working within the nation. This map not solely options homegrown fintech startups but additionally regulated monetary establishments, infrastructure suppliers, multinational fintech corporations, enterprise software program corporations and know-how corporations which might be of relevance to the home fintech sector. These corporations comprise Tanzanian-founded ventures, regional African fintech corporations working in Tanzania, and worldwide fintech corporations serving Tanzanian prospects.

Native fintech corporations dominate the ecosystem

According to the analysis, Tanzania’s fintech ecosystem is dominated by native fintech corporations, which make up 90.1% of all trade stakeholders with 155 ventures, adopted by various lenders, totaling 10 corporations, and cellular cash suppliers with 6 corporations.

Among fintech-native corporations, the cost vertical leads the market with a 70.3% share and 109 corporations. This vertical contains 62 cost system suppliers, 26 remittance and cross-border commerce cost companies suppliers, and 21 cost aggregators. Notable names embody Selcom Paytech, AzamPay, and Pesapal Tanzania:

Selcom Paytech is a significant cost gamers offering a variety of digital cost services specializing in digital, card and card-less processing companies. It claims a community of greater than 25,000 brokers, 100,000 retailers, and 40 banking companions.
AzamPay specializes in growing end-to-end on-line cost options for corporations working throughout East Africa, together with developer-first gateway, no-code hyperlinks and shopper wallets.
Pesapal Tanzania helps companies in Tanzania settle for funds on-line, through cellular cash, and thru point-of-sale (POS) terminals.

After funds, various financing is the second greatest fintech vertical in Tanzania, boasting 21 digital lending platforms and a share of 13.5%. Notable manufacturers on this class embody Watu, MOGO Tanzania, and Branch:

Watu is an asset finance firm that gives accessible loans for bikes, three-wheelers, and smartphones. Originally from Kenya, Watu claims it has supplied over 2 million loans throughout eight nations, reaching greater than 8 million individuals.
MOGO Tanzania supplies accessible automobile and asset financing, specializing in loans for bikes, tuk-tuks, automobiles, smartphones, and logbook loans. It’s half of Eleving Group, a global fintech firm working in over 17 nations on three continents.
Branch operates a digital cellular lending and private finance platform in Tanzania, providing smartphone-based immediate loans as much as TZS 1 million (US$377) with quick approvals straight by their Android cellular software.

Digital accounting and tax is one other outstanding fintech vertical, accounting for 11.6% of all fintech-native corporations in Tanzania with 18 corporations. Notable corporations embody SoftNet Technologies, and Pergamon Group:

SoftNet Technologies is a homegrown info and communications know-how (ICT) options supplier that serves purchasers throughout varied industries together with authorities, telecommunications, in addition to banking and finance.
Pergamon Group is one other ICT options firm providing a variety of merchandise throughout POS and monetary options, safety enhancement, workplace automation, and banking money options. It has a presence in Rwanda, Tanzania and Kenya.

Finally, the credit score scoring, synthetic intelligence (AI) and embedded finance vertical boasts seven suppliers, accounting for a 4.5% of the market. Prominent ventures embody JUMO, and Kuunda:

JUMO operates a banking-as-a-service (BaaS) platform utilizing AI to energy digital credit score and financial savings in rising African markets. Headquartered in South Africa, the corporate operates throughout a number of African nations, together with Tanzania, Kenya, and Uganda, and claims it has served greater than 39 million prospects, disbursing over 313 million loans. In Tanzania, JUMO powers merchandise corresponding to Timiza Akiba, a cellular cash financial savings resolution on Airtel Money, and the short-term credit score product Tigo Nivushe.
Kuunda is a B2B digital fintech infrastructure firm that gives embedded working-capital and micro-lending options, together with immediate entry liquidity, and progress financing options.

Homegrown ventures lead the market

The analysis additionally revealed that Tanzania’s fintech ecosystem is led by homegrown corporations. Of the 155 core fintech suppliers recognized, 99 originate from Tanzania (63.9%), reflecting a dynamic startup market domestically.

These corporations are adopted by Kenya, represented by 16 corporations and a share of 10.3%, Nigeria with 9 ventures and a 5.8% share, and the UK with seven and a share of 4.5%. This underscores the attractiveness of the Tanzanian market to fintech corporations.

Other jurisdictions represented embody the US (4 pure-play fintech corporations), South Africa (4), Uganda (3), China (3), India (2), the United Arab Emirates (UAE) (2), in addition to Ghana, Hong Kong, Ivory Coast, Singapore and Uruguay, every with one.

Prominent international ventures serving the Tanzanian market embody Flutterwave, Thunes, dLocal, and Boku:

Flutterwave is an organization headquartered within the US that gives cost infrastructure for retailers and cost service suppliers throughout Africa. With a valuation of US$3.2 billion, Flutterwave is the Most worthy fintech firm within the continent.
Thunes is a cost companies supplier from Singapore that allows monetary establishments and international companies to make funds in real-time in over 140 nations and greater than 90 currencies. It serves corporations corresponding to Uber, Deliveroo, Grab, and WeChat, connecting them on to over 12 billion cellular wallets, stablecoin wallets and financial institution accounts, in addition to 15 billion playing cards.
dLocal is a fintech startup from Uruguay that gives cross-border funds in Africa, Asia, the Middle East, and Latin America.
Boku is a cellular cost firm headquartered within the UK specializing in native cost strategies that serves greater than 60 nations and jurisdictions.