Prime
Digital financial governance in Tanzania set for a makeover
Bank of Tanzania headquarters in Dar es Salaam. PHOTO | FILE
What you need to know:
- The Integrated Core Banking System has been fully designed, built and deployed by local BoT experts over a three-year period
Dar es Salaam. Vice President Philip Mpango on Wednesday commended the Bank of Tanzania (BoT) for developing and launching its own Integrated Core Banking System (iCBS), describing it as a landmark achievement in the country’s digital financial governance.
Speaking at the official launch, Dr Mpango hailed the iCBS, which has been fully designed, built and deployed by local BoT experts over a three-year period, as the first system of its kind created by a central bank in Africa.
Operational since October 2024, the system is now fully functional and integrated into the country’s financial infrastructure.
“This is a proud achievement that puts Tanzania ahead in Africa’s digital finance systems. It enhances transparency, supports better policy-making and strengthens public confidence,” Dr Mpango said.
The iCBS is a centralised platform that improves the BoT’s capacity to process payments in real time, automate clearing, enhance data analysis and link with public and financial sector systems. It currently interfaces with 898 systems across Tanzania’s financial network.
Dr Mpango emphasised that the system supports financial inclusion by enhancing service delivery, reducing errors and enabling data-driven decision-making. He urged a stronger push toward cashless transactions, citing growing cyber threats and the need for the BoT to ensure that the iCBS remains secure from hacking and misuse.
He said the government would rely on the iCBS to support real-time financial data for policy-making and that the system should be integrated with national data platforms to harness big data safely. He also directed the BoT and relevant institutions to act decisively against illegal digital lenders who breach privacy laws and exploit consumers with high charges.
The Vice President called for enhanced public education on digital finance, especially among the youth and proposed the creation of a national e-learning platform to support this effort. He further urged the strengthening of legal safeguards to protect locally developed systems like the iCBS, while encouraging institutions to collaborate closely with bodies such as TCRA, eGA and relevant ministries to advance digital financial systems.
Zanzibar’s Finance minister Saada Mkuya also commended the BoT for addressing long-standing financial infrastructure challenges and building trust through a low-cost, locally developed solution. “This is a safe, cost-effective platform that shows the power of local expertise,” she said.
BoT governor Emmanuel Tutuba said the development of the iCBS aligns with the central bank’s “4Rs” vision—Reforms, Reconciliation, Resilience and Rebuilding and demonstrates how local innovation can drive economic transformation.
“As Tanzania transitions into a digital economy, the iCBS is a model of how to blend modern technology, strategic investment and national pride,” he said.
Mr Tutuba revealed that the BoT built the system using its own staff at a cost of Sh10.63 billion—significantly lower than the Sh90.95 billion that would have been required to purchase an off-the-shelf solution.
“This system meets global standards, yet it was made by Tanzanians. We must protect it, promote it and replicate its success in other sectors.”
