Tanzania government acts to ensure financial access hits 85 percent in 2028

The government is undertaking a raft of measures in an effort to raise the population of adult Tanzanians who have access to formal financial services to 85 percent by the year 2028.

The measures were detailed by the Vice President, Dr Philip Mpango, during the launch of the National Financial Inclusion Framework III (NFIF III, 2023–2028).

According to the FinScope Tanzania 2023 Survey, Tanzania’s formal financial inclusion is now at 76 percent, up from 65 percent in 2017.

Dr Mpango highlighted that achieving the new framework targets is possible if the public and private sectors implement effective strategies to address the barriers to formal financial inclusion.

“I think we will do so (achieve the targets), especially if we direct efforts at addressing the financial inclusion needs of the disproportionately underserved segments such as women, youths, micro, small, and medium enterprises (MSMEs), people with special needs, farmers, and fishermen,” he said.

The VP said the government, through the Ministry of Home Affairs will also need to ensure universal access and expand the scope of national identification from birth to facilitate the expansion of access to formal financial services for youth, including those under the age of 18.

“We need to strengthen financial consumer protection, particularly against cybercrime and market malpractices, to build consumer trust and confidence in using financial services,” he said.

While the issue of costs of service remains among the key barriers to financial inclusion, the VP has instructed that there is a need to develop a regulatory framework and systems to enhance the use of and expand the scope of access.

Dr Mpango said: “We need to increase efforts to extend affordable shared payment infrastructure to enhance the use of formal financial services.”

“In tandem, there is a greater need to enhance universal connectivity, reduce reliance on cash transactions, and expand the efficiency and competitiveness of the financial sector in Tanzania.”?

The governor of the Bank of Tanzania (BoT), Mr Emmanuel Tutuba, said the current number of 76 percent on financial inclusion has exceeded the government target of 75 percent as implemented through the National Financial Inclusion Framework II (NFIF II 2018–2022).

He said the third framework (NFIF III 2023-2028) will be geared towards expanding usage of formal financial services to 85 percent, among other things, by expanding the availability and usage of financial access points in rural areas and enhancing the design of financial solutions to align with the needs of consumers.

“Enhancing equality of financial services by improving customers experiences, delivering affordable financial solutions, enhancing consumer complaint handling and readiness mechanisms, and implementing programs for financial literacy,” he said.The Citizen