Why captains in the financial sector need to listen to people

Friday October 22 2021

Mwananchi Communications Limited (MCL) Board chairman Leonard Mususa.

By Jacob Mosenda

Dar es Salaam. Mwananchi Communications Limited (MCL) Board chairman Leonard Mususa said that it was the expectation of Tanzanians and stakeholders to see a lasting solutions for various challenges that have been an obstacle in the financial sector.

Speaking during a financial week symposium organized by MCL in celebration of 60 years of independence, Mr Mususa outlined various challenges that hindered the growth of the industry especially in terms of service delivery to Tanzanians.

However, Mr Mususa said the aim of the forum, which brought together experts from the financial sector, provided a great opportunity to find the needed solutions.

He said in the past week during the energy and mining symposium, they talked a lot about energy and other big things that need to be done in the sector, but the issue of capital, affordable loans that can enable investors in those sectors came up strongly.

“So, what should we expect today?” Mr Mususa asked. He said his wish list was to see financial inclusion addressed and not just in sending and receiving money but in such a way that everyone can save a little and get the amount he needs,” he said.

He said consumers of financial services have long been crying out for low interest loans and even when officials stand up from time to time they want loans to be available at low interest rates, this is the cry of the people.


“But now what can be done to make these affordable loans available. Another challenge is people borrowing and not repaying as the loan rate is low compared to the loans issued.

“We have more than 10 percent in the country, and the central bank advises not to exceed five percent.

So we are still far away and this increases the cost of lending,” he said.

He also spoke about the creationg of enabling environment saying although the central bank has started the process by assisting in cost-cutting services for banks, he said that other departments like the Tanzania Revenue Authority (TRA) should do the same and find ways of enabling businesses to grow and flourish.