Mpango pushes for digital transactions

DAR ES SALAAM: VICE-PRESIDENT Dr Philip Mpango has underscored the importance of adopting digital financial systems to boost efficiency and reduce reliance on cash-based transactions.

Speaking during the launch of the Bank of Tanzania’s new Integrated Core Banking System (iCBS) in Dar es Salaam yesterday, he said that digital platforms offer significant economic benefits for both individuals and the nation.

“Using digital systems is crucial for improving efficiency, transparency and security in financial transactions, while also reducing the risks associated with cash reliance,” he said at the launch of the system aimed at enhancing the efficiency and security of financial services in the country.

He also underscored the need for robust cybersecurity measures to protect the new system and all payment platforms from online threats and called on banks to accelerate the shift toward digital payments.

The iCBS, which replaces the Central Banking System (CBS) used since 1999, began development in November 2021 and was completed in September 2023. The new system is designed to enhance financial data management and operational efficiency, particularly in the face of rising cybercrime.

“This internationally benchmarked system will revolutionise Tanzania’s financial sector by eliminating operational bottlenecks.

“It gives us greater control over our financial data and systems, which is vital in this era of escalating cybercrime,” Dr Mpango said.

The iCBS marks a major technological milestone, sitioning the Bank of Tanzania as the first central bank in Africa to design and implement such a comprehensive system using in-house expertise.

In addition, the threeyear project, completed in October last year, cost approximately 10.63bn/-.

The Vice-President urged BoT to work closely with the Tanzania Communications Regulatory Authority (TCRA) and relevant government ministries to ensure the system and other digital payment systems are well managed and secure.

BoT Governor Mr Emmanuel Tutuba said that the system’s launch fulfills a government directive to modernise and integrate national financial systems.

“The performance of this system has been outstanding and aligns well with national expectations and requirements,” he said.

Minister for Communication and Information Technology, Mr Jerry Silaa added that the development of the iCBS will drive progress in both the banking and financial sectors.

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What’s even more commendable is that the system was built by local experts, demonstrating the value of using domestic talent and solutions,” said Mr Silaa.

Meanwhile, Zanzibar’s Minister of State in the President’s Office (Finance and Planning), Dr Saada Mkuya Salum said that the system will address numerous challenges, especially by improving banking services during this initial rollout phase.