Vodacom Tanzania has completed a $28 million upgrade of its M-Pesa infrastructure, migrating the mobile money platform from its legacy G2 system to a next-generation architecture designed for higher transaction volumes, faster feature deployment, and stronger security.
The company described the investment, announced on 2 April, as one of the most significant fintech infrastructure upgrades in Tanzania’s history.
What changed
The new platform reduces planned maintenance downtime from hours to minutes, a critical improvement for a service that millions of Tanzanians rely on for daily transactions. Enhanced security layers have been added to protect customer data, and the system’s transactional capacity has been expanded to handle growing demand.
For M-Pesa agents, merchants, and enterprise partners, the upgrade delivers more detailed reporting, better reconciliation tools, and more transparent service management. The modernised architecture also allows Vodacom to deploy new features across savings, credit, payments, and enterprise solutions more quickly than the legacy system permitted.
“This investment is about futureproofing one of Tanzania’s most important financial platforms,” said Philip Besiimire, CEO of Vodacom Tanzania. “Our customers deserve a platform that evolves with their needs, faster, stronger, and more resilient.”
Broader context
The upgrade comes as Vodacom Group deepens its investment in mobile financial services across Africa. The company recently agreed to acquire a controlling stake in Safaricom for $2.1 billion, giving it majority ownership of M-Pesa’s largest market in Kenya. MTN Group, Vodacom’s main continental rival, processed over $500 billion in mobile money transactions in 2025.
Vodacom has introduced a 30-day intensive support period following the migration to identify and resolve any issues arising from the transition.
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