Tanzania’s digital economy has been brought to its knees following a nationwide internet blackout that began on October 29, the day of the country’s general elections.
Officially framed as a “security measure,” the shutdown has devastated a fintech sector that underpins millions of livelihoods, with remittances, mobile money, and digital banking grinding to a halt.
Connectivity remains below 15% of normal levels, according to NetBlocks, making this one of the longest and most damaging internet disruptions in East African history.
The timing coinciding with post-election unrest and protests has sparked international condemnation, raising alarm over both human rights and economic stability.
From Polls to Blackout: A Nation Goes Dark
The blackout followed a turbulent election day marked by arrests of opposition leaders and sporadic clashes in Dar es Salaam and Arusha.
By midday, internet traffic had dropped by 90%, silencing social media, disrupting aviation systems, and cutting off millions of digital transactions.
President Samia Suluhu Hassan’s inauguration on November 3 proceeded under continued restrictions.
Foreign Minister Mahmoud Kombo Thabit defended the measure as “necessary for peace and stability,” but civil society and international observers including the African Commission on Human and Peoples’ Rights condemned it as disproportionate and economically reckless.
It’s not the first time Tanzania has pulled the plug: similar restrictions in 2020 crippled communication during that election cycle.
But in 2025, with fintech penetration up 40% and mobile money embedded in daily life, the consequences are far more severe.
When the Internet Stops, So Does the Economy
Tanzania’s fintech ecosystem, valued at over $1 billion, relies almost entirely on internet-based platforms. With the blackout, both domestic and cross-border transactions froze overnight.
1. Remittances Ground to a Halt
Remittances exceeding $700 million annually form a financial lifeline for one in five households. With the outage, diaspora inflows from the U.K., U.S., and Europe were instantly blocked.
NALA, a leading remittance app founded by Tanzanian entrepreneur Benjamin Fernandes, suspended operations for 18 hours.
“For 18 hours, families in Tanzania couldn’t receive money from loved ones abroad. This isn’t about tech; it’s about food, medicine, and survival,” Fernandes posted on X.
His feed, filled with accounts of families unable to pay hospital bills or school fees, went viral, putting a human face on the digital blackout.
READ ALSO:Relief for Businesses and Individuals in South Sudan as Internet Restored
2. Mobile Money and Banking Disruptions
Local operators such as M-Pesa, Airtel Money, and Tigo Pesa saw transaction volumes drop by 80%. Banking systems and ATMs froze, salaries were delayed, and e-commerce collapsed.
Fintech analysts estimate the digital payments sector lost over $5 million per day, with ripple effects across logistics, healthcare, and retail.
3. The Ripple Effect Across Industries
| Sector | Daily Pre-Shutdown Volume | Loss Per Day | Source |
|---|---|---|---|
| Remittances | $2M+ | $1.8M | TechCabal |
| Mobile Money | 10M+ transactions | 8M halted | CIPESA |
| E-Commerce | $500K | $400K | NetBlocks |
| GDP Impact | — | $10M+ | Internet Society |
Digital health services, delivery apps, and tourism booking platforms all went offline, exposing how deeply the economy depends on stable connectivity.
Voices from the Ground: Benjamin Fernandes Leads the Call
As the founder of one of Africa’s most trusted remittance platforms, Benjamin Fernandes has emerged as a key voice of dissent. His posts have drawn thousands of shares:
- Oct 30: “When the internet goes dark, the economy follows. In Africa, it’s not just tweets that stop; it’s mobile money, jobs, hospitals, and livelihoods.”
- Oct 31: “Tanzania, restore the internet. Shutting it down is unacceptable.”
- Nov 2: “Turn the internet back on, Tanzania 🇹🇿.”
Founded in 2019 and backed by Y Combinator, NALA has pioneered affordable remittances using stablecoin rails, but, as Fernandes warns, “Tech can’t thrive without connectivity.”
The Bigger Picture: A Wake-Up Call for African Fintech
The Tanzanian blackout is part of a wider pattern across Africa. In 2024 alone, internet shutdowns in Uganda, Ethiopia, and Sudan cost the continent $1.5 billion, according to the Internet Society.
For a country targeting a $100 billion digital economy by 2030, Tanzania’s shutdown risks investor flight and long-term reputational damage. Startups lost data access, cloud infrastructure stalled, and diaspora trust was shaken.
Still, some fintechs are responding with resilience testing of offline fallback systems, satellite redundancy, and SMS-based transaction models. But the incident points out a hard truth: Africa’s fintech growth is only as strong as the internet that powers it.
Tanzania’s internet blackout isn’t merely a political manoeuvre but a humanitarian and economic crisis that has silenced millions and stalled one of Africa’s most dynamic digital economies.
As Benjamin Fernandes put it, “Access isn’t optional; it’s survival.”
The government’s next move will define not just the credibility of its elections but the trajectory of its entire fintech ecosystem. Restoring connectivity is no longer a request; it’s a necessity.
Ronnie Paul is a seasoned writer and analyst with a prolific portfolio of over 1,000 published articles, specialising in fintech, cryptocurrency, climate change, and digital finance at Africa Digest News.
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