Dar es Salaam. The Bank of Tanzania (BoT) has issued a stern directive requiring all Tier II microfinance institutions to register with either the Tanzania Association of Microfinance Institutions (TAMFI) or the Tanzania Microfinance Institutions Union (TAMIU) by the end of December 2025, or risk losing their operating licences.
Speaking during the launch of the Implementation Guidelines for the Self-Regulation Framework of the Microfinance Sector on July 1, BoT Governor, Mr Emmanuel Tutuba, said the directive is aimed at strengthening supervision, improving service delivery, and protecting consumers in the growing microfinance sector.
“All Tier II microfinance institutions are required to register with one of the two umbrella organisations—TAMFI or TAMIU—within six months, from today, 1st July, until the end of December 2025. Any institution that fails to comply by then will have its licence revoked,” Mr Tutuba announced.
He explained that the self-regulation model will enhance ethical practices and accountability in the sector while providing a structured approach to resolving persistent challenges such as predatory lending.
“Under this framework, TAMFI and TAMIU will be responsible for monitoring the conduct of their members in line with best practices, promoting financial literacy among clients, overseeing complaint resolution mechanisms, enforcing transparency and accountability in service provision, and facilitating the implementation of government policies and regulations,” the Governor elaborated.
Mr Tutuba further stated that the Central Bank will continue to play its oversight role by implementing policies, issuing licences, protecting consumers, monitoring the sector’s overall performance, and working closely with TAMFI and TAMIU to ensure full adherence to the newly launched framework.
The move comes amid a notable expansion of the microfinance sector in Tanzania, which has witnessed the number of microfinance service providers rise to approximately 2,600 nationwide.
Deputy Governor for Financial Sector Supervision, Ms Sauda Msemo, whose remarks were read by the Director of Financial Sector Supervision, Mr Sadati Musa, said this growth reflects the institutions’ significant role in promoting financial inclusion and strengthening the resilience of the financial system.
“The Bank of Tanzania acknowledges and appreciates this contribution. That is why we have introduced this self-regulatory arrangement to bolster transparency and accountability across the sector, with the ultimate goal of safeguarding financial service consumers,” she said.
Representing industry stakeholders, TAMFI Board Chairperson Ms Devotha Minzi and TAMIU Chairperson Mr Juma Mnanka lauded the Central Bank’s decision, pledging their commitment to partner with the regulator in ensuring the sector continues to grow in a responsible and sustainable manner.
The launch of the self-regulation framework marks a pivotal milestone in the evolution of microfinance in Tanzania, aligning the sector with global standards while placing greater responsibility on service providers to uphold professionalism and protect the interests of the public.
