BoT conducts a special training for the Isles lawmakers on new microfinance regulations

ZANZIBAR: THE Bank of Tanzania (BoT) has conducted a specialized training seminar aimed at building the capacity of members of the Rules and Subsidiary Legislation Committee of the Zanzibar House of Representatives, as part of efforts to strengthen understanding and implementation of new microfinance regulations.

The seminar was held at the BoT Sub-Headquarters in Zanzibar and officially opened by the Deputy Minister for Finance and Planning of the Revolutionary Government of Zanzibar (SMZ), Hamad Omar Bakari.

Speaking during the session, the Deputy Governor of the Bank of Tanzania responsible for Financial Stability and Sector Oversight, Sauda K. Msemo, said the training is intended to enhance lawmakers’ and committee stakeholders’ understanding of laws and regulations governing the microfinance sector, while also improving implementation efficiency.

She explained that the presented regulations include the Zanzibar Microfinance Services (Non-Deposit Taking Providers) Regulations, 2025; the Zanzibar Microfinance Services (Savings and Credit Cooperative Societies – SACCOS) Regulations, 2025; and the Zanzibar Microfinance Services (Community Groups) Regulations, 2025.

ALSO READ: BoT boosts safe, productive borrowing drive

Ms. Msemo noted that implementation of the regulations will be supported by coordinated strategies involving multiple institutions, including the Ministry of Finance, the Cooperative Development Department, and regional authorities, with the aim of identifying the number and geographic distribution of microfinance service providers across the country.

She further stated that BoT will continue to provide education and training to microfinance service providers on licensing and registration procedures in accordance with existing laws, while also building the capacity of cooperative officers and local government authorities responsible for supervising lower-tier financial institutions.

In addition, the central bank is preparing supervisory guidelines for microfinance service providers across all categories, alongside the development of digital systems to facilitate registration, data collection, and processing of operational information for these institutions.

The seminar brought together the Chairperson and members of the committee, officials from the President’s Office – Regional Administration and Local Government, special departments of the SMZ, as well as senior officials from the Zanzibar Ministry of Finance and Planning and the Bank of Tanzania.