FSDT partners with the Bank of Tanzania, Ministry of Finance, Ministry of Agriculture, Tanzania Insurance Regulatory Authority,Capital Markets and Securities Authority and the Registrar of Cooperatives to create an enabling environment for the development of a more capable financial sector that meets the needs of individuals and enterprises.
Rural Financial Services Strategy (RFSS)
In 2008, the Bank of Tanzania requested FSDT to support the development of the Rural Financial Services Strategy for Tanzania. The objective of the strategy was to:
- Create an enabling and conducive environment to support interaction between providers (suppliers) and users (demand) of financial services in the rural areas
underscore the need to build capacities of both demand and supply sides of financial services in order to create effective demand, scale up existing services
- To promote new innovations in products, services and delivery channels appropriate to the needs of rural individuals and their micro, small and medium enterprises (MSMEs).
- To provide special attention to strengthening Savings and Credit Cooperatives Societies (SACCOS), given their dominant presence in rural areas and potential as community and savings-based institutions, so that they can reach their full potential in intermediating financial services within rural communities.
- Information gathering and diagnosis of the environment for rural finance
- Identification of gaps and opportunities for rural finance
- Identification of and mapping out strategic options
- Recommend the features of the Rural Financial Services Strategy for Tanzania
- Ministry of Finance
- Ministry of Finance-Zanzibar
- Ministry of Agriculture, Food Security and Cooperatives
- Bank of Tanzania
- Registrar of Cooperatives
- Financial institutions
- Farmers’ Associations
- Oxford Policy Management (OPM)
It was expected that the strategy, once implemented, would lead to:
(i) Increased level of access (and usage) to financial services by rural population
(ii) Better and improved livelihoods of the rural population
The BoT’s Inter-Institutional Committee of the Financial Sector Development Programme (FSP) approved the recommendations in 2010.
However to date full Government endorsement of the Strategy has not yet been achieved. Nevertheless the process of preparation of the strategy created significant awareness of the issues and various government agencies and private sector entities are implementing elements of the strategy.
Financial Education Strategy
The overall aim of this initiative was to develop a national strategy to improve financial literacy in Tanzania and to recommend a mechanism to monitor and evaluate progress and effectiveness towards targets that will need to be established. FinScope 2009 reported that there are low levels of awareness and high levels of ignorance about many financial products and terms among people.
The aims of developing the strategy included:
a) To focus national attention on improving financial literacy
b) To provide the framework for guiding and informing relevant parties, as well as recommending their different roles in promoting financial literacy
c) To catalyze interested parties to take action and
d) To provide an appropriate foundation for consumer protection based on increased public understanding about financial products and services and thus an ability of people to make informed financial choices.
- Situational analysis/market review
- Stakeholders’ consultations
- Presentation of the findings from the situational analysis
- Development of strategic options for a National Strategy and a Consumer Strategy
- Government ministries (e.g. MoF, Ministry of Education, Youth, Labour and Employment,)
- Bank of Tanzania
- Financial Institutions
- MarketWorx Africa (MWA)
The strategy titled “Financial Education Framework for Tanzania” was approved by the Government in April 2011.
Implementation of the strategy will be coordinated by the BOT which is establishing a Financial Education Secretariat.
National Financial Inclusion Framework
The National Financial Inclusion Framework sets out to address the barriers to financial inclusion at the Macro, Meso and Micro Levels. The Framework intends to address these barriers through the use of several channels, including technology, to increase financial inclusion in Tanzania in terms of access and usage of financial services. In Tanzanian context, it outlines the vision and definition of financial inclusion; core enablers and priority areas; guiding principles; measurement framework; coordination structure; implementation plan and monitoring and evaluation.
FSDT IS financing activities where the Bank of Tanzania takes the leading role.
· Capacity building for the Tanzania National Council for Financial Inclusion
· Establishment of a Coordination Structure for Donors
The National Financial Inclusion Framework was launched in December, 2013.