The Bank of Tanzania has announced the formal start of a guided self-regulatory approach for Tier II microfinance service providers, developed in collaboration with the Tanzania Association of Microfinance Institutions and the Tanzania Microfinance Institutions Union. The arrangement is positioned as a complement to the Bank’s existing supervisory framework, aimed at strengthening financial consumer protection and governance in the sector. Under the initiative, TAMFI and TAMIU have been appointed as Guided Self-Regulatory Institutions responsible for promoting and enforcing sound market conduct, dispute resolution, and best practices among their members. The Bank of Tanzania will continue to issue licences to Tier II microfinance service providers, oversee overall implementation, and support the associations in ensuring compliance with agreed terms and the conditions of providers’ licences. All Tier II microfinance institutions are required to join either TAMFI or TAMIU within six months from the date of the notice and comply with the self-regulation agreements under the new arrangement.
Bank of Tanzania 2025-08-07
Bank of Tanzania launches guided self-regulatory approach for Tier II microfinance service providers
The Bank of Tanzania has launched a guided self-regulatory approach for Tier II microfinance service providers, collaborating with the Tanzania Association of Microfinance Institutions (TAMFI) and the Tanzania Microfinance Institutions Union (TAMIU). TAMFI and TAMIU will enforce market conduct and best practices, while the Bank will continue licensing and oversight. All Tier II institutions must join either association and comply with the new self-regulation agreements.