Tanzanian Government: Mandatory Digital Payments Now Law

• The Tanzanian government has made digital payments mandatory for various transactions as part of efforts to reduce cash usage and prevent money laundering.
• The Electronic Transactions (Mandatory Electronic Payments for Specified Transactions) Order, 2026 (Government Notice No. 158C of 2026) has been introduced under the Electronic Transactions Act (Cap. 442), specifying which transactions must be conducted electronically.
• The move aims to enhance financial inclusion, improve transparency and security in financial transactions, and bring Tanzania's financial infrastructure in line with international best practices.

The government believes that this shift will not only enhance financial inclusion but also improve transparency and security in financial transactions.

The Tanzanian government has implemented mandatory digital payments for various transactions as part of its efforts to minimize cash usage and prevent money laundering. This new requirement is a result of the Electronic Transactions (Mandatory Electronic Payments for Specified Transactions) Order, 2026 (Government Notice No. 158C of 2026), which came into force on July 1, 2026, and was introduced under the Electronic Transactions Act (Cap. 442). The move aims to reduce the reliance on physical currency and promote digital payments in the country. The government believes that this shift will not only enhance financial inclusion but also improve transparency and security in financial transactions.

The Electronic Transactions (Mandatory Electronic Payments for Specified Transactions) Order, 2026 (Government Notice No. 158C of 2026), introduced under the Electronic Transactions Act (Cap. 442), is a significant development in Tanzania's efforts to regulate digital payments. This Order now requires that certain transactions be conducted electronically, including those related to government services, utility bills, and other key areas. This move is part of a broader effort to modernize Tanzania's financial infrastructure and bring it in line with international best practices. The new regulation is expected to have far-reaching implications for businesses and individuals operating in the country.

The introduction of mandatory digital payments has significant implications for lawyers, particularly when it comes to advising clients on cash management and money laundering compliance. As a result of this new requirement, companies may need to update their internal controls and procedures to ensure they are meeting the new regulatory standards. This shift towards digital payments also presents opportunities for businesses to improve their financial efficiency and security, but it requires careful planning and implementation to avoid any potential pitfalls.

Lawyers should watch for the impact on clients' cash management and money laundering compliance, as this new requirement may necessitate updates to internal controls and procedures.

Source: Original reporting via Daily News