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

Tanzania is dwelling to a rising fintech ecosystem, comprising 171 gamers working throughout funds, digital banking, lending, banking infrastructure, and extra, according to new analysis by Cofounders Notebook, a weekly e-newsletter protecting fintech and expertise 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 providers with a heavy emphasis on East African markets.

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

Native fintech firms dominate the ecosystem

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

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

Selcom Paytech is a serious fee gamers offering a variety of digital fee services specializing in digital, card and card-less processing providers. It claims a community of greater than 25,000 brokers, 100,000 retailers, and 40 banking companions.
AzamPay specializes in creating end-to-end on-line fee options for firms 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, by way of cellular cash, and thru point-of-sale (POS) terminals.

After funds, various financing is the second largest 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 international locations, reaching greater than 8 million individuals.
MOGO Tanzania supplies accessible automobile and asset financing, specializing in loans for bikes, tuk-tuks, vehicles, smartphones, and logbook loans. It’s part of Eleving Group, a global fintech firm working in over 17 international locations on three continents.
Branch operates a digital cellular lending and private finance platform in Tanzania, offering smartphone-based prompt loans as much as TZS 1 million (US$377) with quick approvals immediately by their Android cellular utility.

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

SoftNet Technologies is a homegrown info and communications expertise (ICT) options supplier that serves shoppers 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 financial 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 international locations, 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 resembling Timiza Akiba, a cellular cash financial savings answer on Airtel Money, and the short-term credit product Tigo Nivushe.
Kuunda is a B2B digital fintech infrastructure firm that gives embedded working-capital and micro-lending options, together with prompt entry liquidity, and progress financing options.

Homegrown ventures lead the market

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

These firms are adopted by Kenya, represented by 16 firms 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 firms), 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 overseas ventures serving the Tanzanian market embody Flutterwave, Thunes, dLocal, and Boku:

Flutterwave is an organization headquartered within the US that gives fee infrastructure for retailers and fee service suppliers throughout Africa. With a valuation of US$3.2 billion, Flutterwave is the most valuable fintech company in the continent.
Thunes is a fee providers supplier from Singapore that allows monetary establishments and international companies to make funds in real-time in over 140 international locations and greater than 90 currencies. It serves corporations resembling 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 fee firm headquartered within the UK specializing in native fee strategies that serves greater than 60 international locations and jurisdictions.