Dar es Salaam; Tanzania has taken another significant step towards accelerating its digital economy following the introduction of the Electronic Transactions (Mandatory Electronic Payments for Specified Transactions) Order, 2026, which requires payments for a wide range of services and transactions to be made electronically.
The Order, published through Government Notice No. 158C under the Electronic Transactions Act (Cap. 442), came into effect on 1 July 2026. It mandates that both individuals and businesses making or receiving payments for specified transactions must do so through approved electronic payment channels.
Broad Range of Electronic Payment Options
Under the new regulations, electronic payment methods include:
- Mobile money services
- Bank transfers
- Electronic Funds Transfers (EFT)
- Payment cards
- Electronic wallets
- Point of Sale (POS) devices
- Internet banking
- Mobile banking
- Government electronic payment systems
The Order defines electronic means as any payment system or channel that uses digital technology to facilitate transactions.
Six-Month Transition Period
Businesses and organisations that were already receiving payments before the Order came into force have been granted a six-month transition period to install and operationalise electronic payment systems.
The Order also safeguards agreements entered into before its commencement, ensuring that existing contractual arrangements remain unaffected.
Transactions Covered
The mandatory electronic payment requirement applies to several sectors of the economy, including:
- Public transport services such as Bus Rapid Transit (BRT), ferries, bridges, long-distance buses, online taxis, air transport, railways and parking services.
- Shopping malls, cinemas, gyms, fuel stations, conference and event venues, sports arenas, and international trade exhibitions including Saba Saba and Nane Nane.
- Educational fees and contributions from pre-primary schools through universities.
- Hotels, restaurants and cafés.
- Tourism-related services.
- Purchase, sale or rental of buildings, plots and farms.
- Motor vehicle sales and purchases.
- Agricultural transactions conducted through cooperative unions and Agricultural Marketing Cooperative Societies (AMCOS), covering strategic crops such as cotton, cashew nuts, coffee, tea, sisal and tobacco, as well as agricultural inputs and pesticides.
Driving Tanzania's Digital Economy
The introduction of mandatory electronic payments aligns with Tanzania's broader efforts to promote financial inclusion, improve transaction transparency, strengthen tax administration, reduce cash handling risks and support the country's digital transformation agenda.
For businesses, the new regulations are expected to accelerate investment in digital payment infrastructure while encouraging wider adoption of cashless payment solutions across multiple sectors of the economy.
With the Order now in force, businesses operating within the specified sectors are expected to ensure they have compliant electronic payment systems in place before the expiry of the six-month transition period.
Source: The Electronic Transactions (Mandatory Electronic Payments for Specified Transactions) Order, 2026 (Government Notice No. 158C), issued under the Electronic Transactions Act (Cap. 442).
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