BoT pushes wider financial access for MSMEs
ARUSHA: THE Bank of Tanzania (BoT) has emphasised the importance of expanding access to formal financial services for micro, small and medium enterprises (MSMEs), citing the sector’s significant contribution to employment creation and economic growth.
BoT Deputy Governor responsible for Financial Stability and Deepening, Ms Sauda Msemo, made the remarks yesterday in Arusha during the opening of a fourday meeting of the Global Standards Proportionality Working Group (GSPWG) and the Small and Medium Enterprises Finance Working Group (SMEFWG) under the Alliance for Financial Inclusion (AFI).
She said despite the critical role played by MSMEs in supporting the economy and contributing to the country’s Gross Domestic Product (GDP), many enterprises still face difficulties in accessing formal financial services.
According to Ms Msemo, proportional regulation should not be interpreted as lowering regulatory standards, but rather as an approach that strengthens financial stability while encouraging more businesses and individuals to operate within regulated systems.
“The evidence gathered by the Global Standards Proportionality Working Group clearly demonstrates that proportionate regulation enhances regulatory integrity while promoting financial inclusion,” she said.
She added that addressing financing challenges facing MSMEs requires innovative regulatory approaches, bold policy reforms and continued exchange of experiences among member countries.
Ms Msemo further noted that Tanzania’s National Financial Inclusion Framework (2023–2028) has set ambitious but achievable targets focusing on financial access, usage, quality of services and improvement of citizens’ welfare.
ALSO READ: MSMEs advised on product verification
She said Tanzania has made remarkable progress in financial inclusion, largely driven by the rapid growth of mobile money services and the Tanzania Instant Payment System (TIPS), which has transformed financial transactions for individuals and businesses.
Meanwhile, BoT Director of Financial Deepening and Inclusion, Dr Kennedy Komba, said agency banking guidelines introduced by the central bank have enabled nearly half of the population to access mobile financial services.
He noted that mobile money accounts have now surpassed active bank accounts, with 15.5 per cent of adults using mobile phones to pay bills and 14 per cent relying on mobile money services to send and receive funds.
Dr Komba said Tanzania currently has more than 21 million registered mobile money accounts, describing the achievement as a major milestone in advancing financial inclusion and supporting economic growth.
On his part, AFI Director of Policy Programmes and Implementation, Dr Eliki Boletawa, commended Tanzania for the progress made in promoting financial inclusion through coordinated policies and stakeholder collaboration.
