DAR ES SALAAM: THE Bank of Tanzania (BoT) will integrate Zanzibar into the Credit Reference Bureau (CRB) system to blacklist loan defaulters and address the region’s high Non-Performing Loan (NPL) rate.
Speaking at a financial sector stakeholders’ meeting in Dar es Salaam over the weekend, BoT Governor Emmanuel Tutuba said NonPerforming Loan (NPL) rate in Zanzibar has surged to 28 per cent. “
To address this, BoT is working with digital payment platforms like Airpay and mobile banking services to facilitate easier loan repayments,” he said at the meeting, focused on improving loan repayments in Zanzibar by deploying digital technology.
“Many people struggle to repay loans due to inconvenient repayment methods that require physical visits to banks. With digital platforms, borrowers can now make payments from anywhere, reducing delays and defaults,” Mr Tutuba explained at the meeting which included representatives from the Zanzibar Economic Empowerment Agency (ZEEA), Airpay Tanzania and various banks.
The BoT Governor emphasised the importance of responsible borrowing, urging citizens to recognise that government loans must be repaid to sustain the funding cycle.
“These funds are meant to empower communities. Timely repayments ensure that more people benefit from interestfree loans,” he added.
To enforce loan discipline, BoT will ensure that all borrowers—whether individuals or groups—are registered in the CRB database.
“This will create two key benefits: Good borrowers will have a positive record, making it easier to access future loans, while defaulters will be restricted from borrowing again,” he stated.
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Currently, government loan repayments in Zanzibar are processed through CRDB, TCB and PBZ banks, with applications managed by ZEEA.
However, discussions are underway to fully digitise the repayment system, making it more accessible and efficient.
Mr Juma Burhan Mohamed, Executive Director of the ZEEA, said the agency has so far disbursed 34.9bn/- to 14,000 women and 9,000 men since 2022, welcomed BoT’s initiative.
ZEEA Director emphasised that linking borrowers to CRB will promote financial discipline and eliminate misconceptions that government loans do not require repayment.
Airpay Vice Chairman Mihayo Wilmor also highlighted the role of mobile payment systems in simplifying loan repayments.
“We have developed a loan management system for ZEEA, allowing borrowers to repay loans at any mobile money agent. Our goal is to build a repayment culture,” he noted.
By integrating Zanzibar into the national credit system, BoT aims to enhance loan recovery, reduce defaults and improve financial stability in the region.
