Knowledge

Author: Ollen Machimbirike

Category:

Date: 21 March 2016

Tanzania has taken the top spot for financial inclusion in sub-Saharan Africa.

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Tanzania has taken the top spot for financial inclusion in sub-Saharan Africa. Tanzania is ranked number 6th globally for providing the most conducive environment for financial inclusion as evaluated by the Economist Intelligence Unit through their Global Microscopic Surveys conducted in 2014 and 2015.
“In 2005, Tanzania was ranked number six among 55 countries in the world, leading all other African countries” – said the Governor of the Bank of Tanzania, Professor Beno Ndulu (pictured). The Governor attributed the glowing success to a bold approach taken by the Central Bank to support innovation by allowing non-banking institutions to provide financial services in the country.

Financial services reached 76 per cent of the population in 2013 from 44 per cent in 2009 largely due to introduction of agent banking and the entry of mobile telephone companies in provision of financial services (Finscope Survey, 2013).

Financial inclusion depth in Tanzania has deepened as a broad spectrum of institutions including banks, businesses, non-bank financial institutions and non-governmental organisations (NGOs) have all made successful attempts to reach out to and incorporate under-served and excluded members of the public through non-traditional channels aimed at expanding financial offerings (Global Microscopic Surveys).
After surpassing financial inclusion targets of 2014, the Central Bank has set new targets of achieving usage of formal financial services under the National Financial Inclusion Framework (NFIF 2014/17) of having 80 per cent of adult population using a financial access point.

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