Framework unveiled to raise financial literacy

Dar es Salaam. A national financial education framework has been launched to address money literacy and consumer protection challenges.

The framework was launched yesterday by the Bank of Tanzania (BoT) and the Financial Sector Deepening Trust (FSDT).

The BoT Governor, Prof Benno Ndulu, said the aim of the initiative was to improve the level of financial capability on the people so that they could make good choices in managing their finances.

“Tanzania has made significant progress in reducing financial exclusion by more than half in a short period since 2009,” he stressed.

He said the mobile money transfer has enabled the financial sector to bridge distances, lower transaction costs and vastly improve convenience in making payment for a wide range of services.

According to him, more than 19 per cent of Tanzanians use the mobile money platform in paying for various services. The rate is equivalent to 75 per cent of Tanzania’s adult population. “People can now trade securities using the platform from wherever they are.”

He said the expansion of financial inclusion presented an opportunity of improving livelihoods, especially of the poor.

However, he noted that financial literacy was necessary for utilising the platform for effective and universal financial inclusion.

He stressed that it was imperative to have a consumer financial education strategy, coordination and implementation structures and a monitoring and evaluation framework.

Meanwhile FSDT executive director Sosthenes Kewe, said it was important to educate the public on financial literacy.