BoT wins global award for financial inclusion innovation

DAR ES SALAAM: THE Bank of Tanzania (BoT) has won the prestigious Nestor Espenilla Jr Financial Inclusion Innovation Award, in recognition of its global leadership in driving financial inclusion through technology and innovation.

The Director of the National Payment System, Dr Lucy Shaidi, told reporters in Dar es Salam yesterday that the award was conferred by the Alliance for Financial Inclusion (AFI) during the ongoing AFI Global Policy Forum on Financial Inclusion in Swakopmund, Namibia.

It was received on behalf of BoT Governor Emmanuel Tutuba by the Deputy Governor for Financial Stability and Sector Supervision, Ms Sauda Msemo, who is leading the Tanzanian delegation at the forum.

According to Dr Shaidi, the central bank was recognised for a series of groundbreaking initiatives, including the rollout of the Tanzania Instant Payment System (TIPS), the launch of the Fintech Regulatory Sandbox Regulations (2024), the establishment of consumer complainthandling platforms such as SEMA na BoT and the adoption of the national QR code payment system, TANQR.

“These measures have significantly boosted financial inclusion, reduced transaction costs and widened access to financial services for Tanzanians,” she said.

She said the achievements reflect the leadership of Governor Tutuba in steering the central bank’s efforts to harness technology to expand financial services, enhance efficiency and improve citizens’ livelihoods.

The Alliance for Financial Inclusion (AFI) brings together central banks and financial regulators from 84 member countries.

Tanzania became a member in 2011. Tanzania has made notable progress in expanding access, usage, quality and innovation in financial services, with a focus on priority groups including women, youth, MSMEs, smallholder farmers, fishers and persons with disabilities.

Initiatives such as TIPS and TANQR have been central to this progress. Growth in digital infrastructure has accelerated these gains.

ALSO READ: Bank of Tanzania blocks 69 unlicensed loan apps

The number of mobile money agents surged by 18.97 per cent to 1.48 million, while telecom subscriptions jumped 23.5 per cent to 86.8 million, according to the Annual Financial Inclusion Report 2024.

More than 21 million Tanzanians are now registered with the National ID system, enabling greater interoperability and access to services.

The report also shows that Tanzania’s Financial Inclusion Index (TanFiX) rose from 0.69 in 2023 to 0.81 in 2024, driven by improvements in access points, mobile money and bank agents, microfinance lending and community finance groups.

The usage sub-index climbed to 0.78, reflecting growing uptake of digital and microfinance loans.

According to the FinScope 2023 Survey, 76 per cent of Tanzanian adults now have access to formal financial services, up from 65 per cent in 2017, with mobile money as the main driver.

The country is targeting 85 per cent by 2028. Digital payments have also soared, with transaction volumes reaching 560 million worth 41tri/-