News
Saturday, June 21, 2014
Financial inclusion to hit 25% in Tanzania by 2016
FINANCIAL REGISTRATION: Many Tanzanians are not included in the formal financial sector (Courtesy Photo)
DAR ES SALAAM, Tanzania - The government wants at least 25% of the population to be included in the formal financial sector by 2016.
It is hoped that this will cause a substantial reduction in poverty levels by 2016 through an increase in the use of financial access especially mobile money transfers.
Speaking in Dar es Salaam recently, the Bank of Tanzania, Deputy Governor, Financial Stability and Access, Lila Mkila said the illegibility and affordability of financial services in the country are crucial to making it easily accessible by the public.
Mkila said there was need to ensure that 25% of Tanzanians living within a five kilometre distance have access point to financial services by 2016. Mkila said infrastructure plays an important role in realizing this target.
“There has been huge investments and innovations taking place in the mobile technology with current data showing out of over twelve million people using mobile phones one in every two individual mobile users, one uses it to remit, save, borrow and pay for their bills.
According to the Census of the Financial Access Point of 2013, there was a considerable increase of population’s access to financial services through mobile money services to 45% by 2013, being an increase of 10% from the records of 2012 which showed the figures at 35%, where as banks services only showed a record increase of 26% by 2013 being an increase of 2% up from the previous records of 24% recorded in 2012.
He said that according to the Finscope report of 2013 over six other million adults use mobile services to save or keep their money.
“Only when one has access to services and that such services are broad, and easily accessible that he is able to use them,” Mkila said.
He said that the Bank of Tanzania will ensure that financial access findings are used to improve and propel policies initiatives by ensuring that the majority of the public have access to financial services.
He said it was now possible for Tanzania to track changes in recent years due to a financial access mapping system carried out in 2012.
Tanzania can compare itself with other countries like Kenya, Uganda and Nigeria. Mkila said Tanzania has identified four drivers of financial inclusion which includes proximity, payments, straw value and information to drive economy through financial services.
By Kenan Kalagho and Patric, Saturday, June 21st, 2014