Dar es Salaam. The rapid expansion of agent banking services across Tanzania is increasingly positioning bank agents as one of the most important drivers of growth in the country’s financial sector, helping banks reach more customers, boost deposits and expand access to formal financial services.
New figures from the consolidated zonal economic performance report for the quarter ending December 2025 show that agent banking continued to record strong growth in 2025, underlining the growing importance of agents in connecting millions of Tanzanians with banking services, particularly in areas where access to traditional bank branches remains limited.
According to the latest financial sector data, bank deposits increased across all zones, growing by 15.6 percent to Sh42.3 trillion compared to the amount recorded at the end of December 2024.
The growth in deposits has been linked to several factors, including greater access to financial services, improved financial literacy and an expanding range of banking products and services.
However, agent banking has emerged as one of the most significant channels helping to bring banking services closer to customers.
The latest figures paint a picture of a banking sector that is increasingly relying on agents to deliver services to customers.
The number of bank agents rose by 28.8 percent, from 139,051 in December 2024 to 179,095 in December 2025, reflecting the growing role of agents in extending the reach of financial institutions across the country.
At the same time, customers conducted 28,265,310 cash deposit transactions through agents in December 2025, up from 27,537,852 recorded a year earlier. The value of those deposits increased by 6.6 percent, rising from Sh23.7 trillion to Sh25.3 trillion.
Cash withdrawals also recorded significant growth. The number of withdrawal transactions increased from 16,613,184 to 17,120,426, while the value of withdrawals surged by 24.1 percent, from Sh9.1 trillion to Sh11.3 trillion.
The figures suggest that bank agents are no longer serving merely as alternative banking outlets but have become critical infrastructure supporting the day-to-day functioning of Tanzania’s financial system.
The figures suggest that bank agents are no longer serving merely as alternative banking outlets but have become critical infrastructure supporting the day-to-day functioning of Tanzania’s financial system.
For economist and fiscal policy expert Mr Samson Rutashobya of the University of Iringa, the significance of the figures goes beyond the growing number of agents.
“What is particularly important is the amount of money now flowing through agent banking channels.
When deposits processed through agents reach more than Sh25 trillion, it shows they have become a major mechanism for mobilising savings and strengthening liquidity within the banking system,” he said.
He noted that stronger deposit growth ultimately enhances banks’ ability to finance businesses, households and productive sectors of the economy.
The increasing reliance on agents also reflects changing customer preferences, according to Tanzania Institute of Accountancy marketing lecturer Ms Dorence Kalemile.
“People increasingly want banking services that fit into their daily lives. Agents operate within neighbourhoods and trading centres where customers already conduct business.
That familiarity builds trust and encourages wider use of formal financial services,” she said.
As the network expands, experts say agent banking is also reshaping the relationship between financial institutions and communities.
Repoa executive director Dr Donald Mmari said the trend mirrors Tanzania’s gradual transition towards a less-cash-dependent economy.
“We are moving towards a cashless economy, but people still want financial services that are close to them. Agents provide that proximity.
They allow customers to access banking services conveniently without travelling long distances to branches, which is why they have become such an important part of the financial ecosystem,” he said.
For economist and Ardhi University assistant lecturer Ms Jasmine Christian, the expansion of agent banking is helping reduce geographical inequalities in access to financial services.
“In many parts of the country, establishing a full-service bank branch may not be economically viable.
Agent banking provides a practical solution by extending financial services into communities that would otherwise remain underserved,” she said.
The development is also changing how banks pursue growth strategies, according to finance expert Mr Alfred Kiariga of Ardhi University.
“Agent networks have transformed the economics of banking. Instead of investing heavily in physical branches, banks can expand their reach more efficiently through agents while continuing to attract deposits, process transactions and serve customers.
It is a model that supports both financial inclusion and business growth,” he said.
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