BoT launches financial inclusion framework
The Bank of Tanzania (BoT) is looking to increase access to credit by offering the unbanked population financial services at affordable costs.The Bank of Tanzania (BoT) is looking to increase access to credit by offering the unbanked population financial services at affordable costs.
Today (12 December), it is launching a National Financial Inclusion Framework in partnership with financial inclusion stakeholders, Tanzania Daily News reports.
The objective is to address identified fundamental barriers that limit financial inclusion by putting in place a robust infrastructure that will support the growth of a range of appropriate financial services as well as the use of technologically driven delivery channels.
In Tanzania, only 14 percent of the population owns a bank account and the contribution of the banking sector to the economy accounted for only 2.36 per cent in 2012, according to figures from the BoT.
BoT's Deputy Governor Juma Reli said in a press release last week that a lack of a credit reference system in Tanzania has been one of the major factors limiting access to credit, as “small firms and individuals borrow at high rates because of the high risks involved as lenders do not have information on their credit behaviours."
The BoT wants the country to reach
50 per cent of financial inclusion by 2015.