Tanzania floors Sub Saharan peers in financial inclusion
Tanzania has been ranked the leading country in East Africa and sub-Saharan Africa in 2016 in thaving an enabling environment for financial inclusion, the latest survey shows.
According to The Economist Intelligence Unit’s Global Microscope 2016 overall scores and rankings, Tanzania is ranked 9th out of 55 countries in the world. The ranking was assessed using 12 indicators in determining global progress and challenges facing financial inclusion.
The survey further indicated that Tanzania has been recognized again because of its continued progress in achieving financial inclusion goals and improving the regulatory environment.
“The main developments in the past year have been the National Payment Systems Act (NPSA) and the Electronic Money Regulations (EMR), both enacted in 2015, which extend financial consumer protection,” the Global Microscope 2016 survey partly reads.
It notes that the NPSA and its attendant regulations and the EMR have extended the range of institutions covered by the Bank of Tanzania’s policy on disclosure, notably mobile money operators.
The report notes further that the new Microfinance Act is in the draft stage and that there are other activities taking place like increasing the number of players in the insurance market in order to increase coverage of the services to members of the public. The survey mentions the Bank of Tanzania’s mandate to enforce consumer financial protection and its decision to set up a customers’ complaint desk.
Also to require all banks and financial institutions under its supervision to submit quarterly reports on complaints received and resolutions achieved as another positive measure to enhance financial inclusion.
The country has been occupying the first position in financial inclusion in sub- Saharan Africa for three consecutive years since 2014, thanks to the various measures that are being implemented over the years to increase access, affordability and usage of financial services among people.
The Economist Intelligence Unit’s Global Microscope analyses the overall regulatory and institutional environment for financial inclusion in more than 50 countries.
It examines the policy and institutional environment that enables providers to offer financial products and services and employ new technologies to deliver them and ensure safe coverage of low-income populations.
It is intended to support practitioners, policymakers, investors and other stakeholders in advancing financial inclusion—to help them evaluate countries’ progress in the area and to identify further targets that will yield additional benefits.
Compared to the 2015 Global Microscope survey, Tanzania did not move in the rankings; however, Kenya and Rwanda are catching up due to significant improvements in their financial inclusion rankings based on regulatory environment and implementation of initiatives. Kenya moved three ranks above and Rwanda eight ranks above their 2015 rankings.
It is the second time within the past three months for Tanzania to be recognized internationally for its financial inclusion measures.
During the September 2016 Alliance for Financial Inclusion (AFI) Global Policy Forum in Nadi, Fiji, Tanzania through the Bank of Tanzania clinched two awards from AFI– Leadership and Peer Review awardsfor outstanding work in promoting financial inclusion.
