Tanzania's government wants half of population to access banking services by 2015

Jul 19, 2013

Tanzania's president Jakaya Kikwete has revealed on Tuesday (July 17th) that the government plans to increase access to banking services to cover at least half of the country's 45 million population by 2015, Tanzania Daily News reports.

Tanzania's president Jakaya Kikwete has revealed on Tuesday (July 17th) that the government plans to increase access to banking services to cover at least half of the country's 45 million population by 2015, Tanzania Daily News reports.

Currently, only 14 per cent of the population has access to banking and financial services, mainly in cities.

Many Tanzanians living in rural areas are excluded from important financial services including loans to finance purchase of inputs, due to the lack of bank branches in these regions.

Jakaya Kikwete is hoping to improve this situation by focusing on rural areas and the development of mobile banking.

Exim Bank is the latest bank to have launched a new mobile banking service in the country, enabling its customers to access their accounts via mobile phone to make instant money transfers and pay their utility or credit card bills.

Mobile phone money transfers are becoming increasingly popular, with Bank of Tanzania (BoT) revealing last December that money transactions worth $654 million (€510 million) have been made in the last two years via mobile payments and money transfer services, Communications Africa reports.

The potential for growth is important, as mobile coverage is widely available and 45 per cent of the Tanzanian population owns a mobile phone.ADNFCR-2976-ID-801614296-ADNFCR