DAR ES SALAAM: THE Bank of Tanzania (BoT) has identified 69 unlicensed and unauthorised digital lending platforms and mobile applications that are operating illegally in the country’s lending market.
In a statement issued on Thursday, the central bank said these platforms and applications failed to comply with the Guidance Note on Digital Lenders under Tier 2 Microfinance Service Providers, 2024, which was issued by the Bank in August this year.
“The guidance aims to enhance oversight of Tier 2 micro-finance service providers offering digital lending services in the country and ensure adherence to Consumer Protection Regulations,” the BoT statement noted.
Through this notice, the BoT informs the public that these platforms and mobile applications are unlicensed and are not permitted to continue offering digital lending services.
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The move is part of the BoT’s effort to safeguard consumers from predatory lending practices and to ensure that only authorised and compliant financial service providers operate in the market.
The bank emphasised the importance of transparency, proper disclosure of fees and interest rates, fair debt collection practices, safeguarding customer information and ensuring client privacy.
Additionally, the BoT is working closely with the Tanzania Communications Regulatory Authority (TCRA) to disable these unauthorised applications, preventing the public from accessing financial services that lack the necessary approvals from relevant authorities.
The central bank urged the public to avoid engaging with these platforms and applications, which operate outside the legal framework.
The BoT also highlighted its commitment to maintaining consumer protection in the digital lending sector, adding that it will continue to update the list of authorised service providers on its official website.
This initiative is vital for creating a safer and more transparent financial environment, where consumers are protected from exploitative practices and can trust the services they use.
