Tanzania Surpasses Financial Inclusion Target

Money Transfer

Tanzania has surpassed its financial inclusion target of 50 per cent, some two years ahead of deadline in 2016, thanks to mobile transaction platform.

The Bank of Tanzania (BoT) is now working on a new goal after the country registered a financial inclusion of 55 per cent in 2014 well ahead of Maya (Mexico) declaration of attaining 50 per cent by 2015.

BoT Deputy Governor, Mr Juma Reli, said the central bank set a target of 50 per cent inclusion some four years ago but mobile transaction enabled them to overtake the target well ahead of time.

"We didn't underestimate our target, the mobile phone transactions surprised us," Mr Reli told the 'Daily News' at the sideline of the 21st World Savings and Retail banking Institute Africa region meeting.

The BoT singled out mobile phones as "one of the most critical links for this phenomenal success" between the unbanked population and financial services.

The deputy governor said that FinScope 2009 survey shows that 55 per cent of bankable population was locked out of the financial services, but in 2013 the figure dropped to 26 per cent.

"In Scandinavia only 5 per cent of payment are done using cash, which is vice-versa of Africa - once it reaches that level the inclusion will increase as well," Mr De Noose said.

Apart from mobile banking, bank agents have increased their penetration led by CRDB that have over 1,000 agents, followed by Tanzania Postal Bank (TPB) over 300, DCB Bank 130 plus and NMB targeting 250 in 2015.

The early challenges was accepting and blending mobile financial infrastructure with mainstream banks as a way of growing banking services in a cost-effective manner.

Dhow Financials CEO, Prof Mohamed Warsame, said financial inclusion does not translate to have a bank account, but rather a part of the banking system even through mobile phone accounts.

Source: Tanzania Daily News 4 June 2015