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Tanzania's central bank launches initiative to strengthen microfinance sector
Governor of the Bank of Tanzania (BoT), Emmanuel Tutuba.
What you need to know:
- Under the new framework, Tanzania Association of Microfinance Institutions and Tanzania Microfinance Institutions Union have been officially designated as Guided Self-Regulatory Institutions
Dar es Salaam. The Bank of Tanzania (BoT), in collaboration with the Tanzania Association of Microfinance Institutions (TAMFI) and the Tanzania Microfinance Institutions Union (TAMIU), has officially launched an initiative aimed at promoting responsible market practices within the microfinance sector.
BoT governor Emmanuel Tutuba said the initiative introduces a Guided Self-Regulatory Approach for tier II microfinance service providers, designed to enhance governance, consumer protection, and operational integrity.
“As part of the bank’s ongoing commitment to strengthening financial consumer protection and improving the regulatory framework for tier II institutions, we emphasised the importance of collaboration with industry associations to extend oversight and promote best practices,” he said.
Mr Tutuba explained that the new approach will complement BoT’s supervisory mandate by leveraging the proximity, peer influence, and technical expertise of microfinance associations.
Under the new framework, TAMFI and TAMIU have been officially designated as Guided Self-Regulatory Institutions (GSRIs).
These bodies will be responsible for promoting adherence to ethical market conduct, facilitating dispute resolution, and enforcing compliance with professional standards among their members.
“The Bank of Tanzania will continue to issue licences, monitor implementation of the framework, and provide strategic support to the GSRIs to ensure effective self-regulation aligned with national policy,” Mr Tutuba said.
He noted that all tier II microfinance institutions are required to register with either TAMFI or TAMIU within six months from the issuance of the notice and must fully comply with the agreed self-regulation framework.
Mr Tutuba said the collaborative model reflects a shared commitment to building a transparent, trustworthy, and inclusive microfinance environment.
“The Bank of Tanzania calls upon all stakeholders and the general public to support and actively participate in this initiative, which is critical to enhancing financial inclusion and fostering a resilient microfinance ecosystem in Tanzania,” he added.
