BoT urges greater use of digital payments in cross-border trade

[webmaster]

The Deputy Governor of the Bank of Tanzania (BoT), Ms. Sauda Msemo, has emphasized the importance of accelerating the adoption of digital payment systems in cross-border trade to enhance efficiency, reduce costs, and promote financial inclusion both in Tanzania and within the East African Community (EAC).

Speaking at the opening of the National Dialogue on Enabling Digital Payments for Cross-Border Traders held in Dar es Salaam on March 31, 2026, Ms. Msemo noted that despite the progress made in expanding digital financial services, a significant portion of cross-border trade is still conducted using cash.

She explained that reliance on cash creates several structural challenges, including high transaction costs, security risks, lack of transparency, and limited access to formal financial services—particularly for women and youth traders.

Ms. Msemo further pointed out that data collected from border areas such as Namanga, Mutukula, and Rusumo, as well as major trading hubs like Arusha, Bukoba, and Mwanza, clearly indicates the need for decisive and collaborative action to remove barriers hindering the adoption of digital payment systems.

She added that the dialogue serves as an important platform to discuss and agree on priorities and solutions that will drive the use of secure, affordable, and inclusive digital payment systems in cross-border trade.

“Our shared goal is to build an interoperable, accessible, affordable, and trusted payment system that facilitates seamless cross-border transactions and strengthens regional economic cooperation,” she said.

She also stressed the importance of close collaboration among public institutions, financial sector stakeholders, financial service providers, and technology innovators to achieve this goal, noting that it is equally important to ensure that the solutions developed reflect the real needs of traders.