FINANCIAL INCLUSION IN TANZANIA

According to the National Financial Inclusion Framework, 2023 – 2028, Financial Inclusion means access to and usage of a broad range of affordable and quality financial products and services on a sustainable basis by individuals and businesses to improve their financial well-being and standard of living. 

The National Council for Financial Inclusion, under the Chairmanship of Honourable Emmanuel Tutuba, Governor of the Bank of Tanzania, has issued the third National Financial Inclusion Framework, 2023-2028. It is a Public-Private initiative implemented in the country preceded by the first (2014-2016) and the second (2018-2022).

The NFIF 3 is meant to address barriers and gaps which are still existing in the move towards expanding access and usage of formal financial services in the country. While addressing the gaps of the previous framework, the 3rd Framework introduces two other dimensions of Quality and Welfare.

The Framework’s vision is to ensure that all adults and businesses have access to and use a broad range of affordable and high-quality financial products and services to improve their financial well being and living standards. To realise this vision, the Framework is geared towards improving access, expanding usage of a broad range of financial services.

NFIF 3 has provided close attention to population groups which are normally underserved and unserved. The Framework has made deliberate provisions to women, youth. persons with disability, smallholder farmers and fishers and SMEs. In this context, the focus will be  on expanding usage of quality formal financial services and access to and usage of a broad range of affordable financial products and services for financial health whilst unlocking financial inclusion barriers. Furthermore, considering the challenges faced by the poor, the Framework will address the poor rural and urban people. 

Microfinance sub-sector through TAMFI, which is represented at the National Financial Inclusion Council by the Chairman of the Board and at the Technical Committee by the Executive Secretary, has embedded the NFIF 3 Action Plan in its Strategic Plan. Activities that are expected to be implemented include, but not limited to: promotion of outreach in areas of low financial services access; collaboration with and adoption of financial services technologies and innovations; engagement on strengthening protection of financial consumer data, redress mechanism and enhancing market conduct, disclosure and transparency within the subsector. Other activities include, engagement in financial literacy programs through a number of channels; enhancing sustainable financing initiatives that create social impact and increasing financial services to special groups by developing centred and tailored financial services and products.