National Microfinance Policy 2017 - Tanzania

Oct 31, 2017 | Ministry of Finance and Planning - Tanzania | Ministry of Finance and Planning - Tanzania
The United Republic of Tanzania has been undertaking financial sector reforms since 1990s, in which its implementation has gone through the First and Second Generation Financial Sector Reform programmes. The reforms have been geared at liberalizing the financial sector, with a view to strengthening the financial market structure. Consequently, they have led to significant changes in the financial sector landscape, including increased participation of microfinance service providers. The development of the financial system is predicated on the financial stability of the country notably the stability of microfinance system. (...) In recognition of the role of the microfinance subsector in poverty reduction and economic growth, the United Republic of Tanzania formulated and adopted the first National Microfinance Policy in 2000 (NMP, 2000). Following [new developments and] changes, there was a need to revise NMP 2000 to take into account new developments, limitations and challenges in the sub-sector. The revised policy will be referred to as National Microfinance Policy 2017 (NMP 2017). The National Microfinance Policy 2017 will create an enabling environment that promotes the development of appropriate and innovative microfinance products and services to meet the real needs of the low income population and thereby enhance economic growth and accelerate poverty reduction.