Mtwara. The Bank of Tanzania (BoT) has said it has issued licences to more than 2,450 Tier II microfinance institutions out of 3,075 applications received, as of Friday, February 21.
“The Bank of Tanzania continues to issue licences and oversee Tier II institutions. So far, more than 2,450 institutions have been licensed, while the total number of applications received stands at 3,075,” BoT’s senior principal officer in the Directorate of Microfinance Supervision, Mr Deogratias Mnyamani, said here on February 26, 2025.
He was speaking on the second day of a seminar for economic and financial journalists from Lindi, Mtwara, Dar es Salaam, Ruvuma, and Zanzibar, where he highlighted the progress and challenges in regulating the microfinance sector.
BoT is mandated under the Microfinance Act of 2018 to license, regulate, and supervise microfinance institutions operating in Tanzania.
The law stipulates that no entity or individual may provide microfinance services without a licence from the central bank.
It classifies microfinance providers into four categories, including microfinance banks that offer deposit-taking services, non-deposit-taking microfinance institutions, and Savings and Credit Cooperative Societies (Saccos).
As of Friday, February 21, a total of 970 Saccos had been registered under the supervision of the Tanzania Cooperative Development Commission (TCDC), which operates under delegated authority from BoT.
Community-based microfinance groups, commonly known as Vicoba, have also expanded, with the number of registered groups reaching 60,346.
These are overseen by local government authorities.
Reflecting on six years of implementing the Microfinance Act, Mnyamani noted positive feedback from stakeholders regarding the law and its regulations.
“There is growing awareness among microfinance service providers regarding the importance of obtaining a licence. Additionally, relations between service providers and the central bank have improved,” he said.
He added that BoT had conducted inspections on more than 300 microfinance providers to ensure compliance with regulatory requirements.
