Bank of Tanzania Launches Two Key Systems to Strengthen Financial Services and Inclusion

(3 Minutes Read)

The Bank of Tanzania (BoT) has officially introduced two groundbreaking initiatives designed to improve the delivery of financial services across the country and address persistent user challenges: the Financial Complaints Management System, popularly known as ‘Sema na BoT’, and the Fintech Regulatory Sandbox. These initiatives mark a significant step in BoT’s ongoing efforts to modernise the financial sector, foster innovation, and enhance public trust in financial institutions.

The launch event, held in Dodoma, was presided over by the Minister for Finance, Dr. Mwigulu Nchemba, who underscored the pivotal role these systems will play in ensuring a more robust and inclusive financial ecosystem in Tanzania. In his keynote address, Dr. Nchemba emphasised the government’s commitment to expanding access to quality, affordable financial services, especially for underserved and remote populations.

The Fintech Regulatory Sandbox is a controlled environment established by BoT to allow fintech firms to test new, innovative financial products and services under the regulator’s supervision. This framework is intended to balance the promotion of innovation with the need to maintain financial stability and consumer protection. By enabling startups and established firms to experiment with emerging technologies such as digital payments, lending platforms, and blockchain applications without immediately meeting full regulatory compliance, the sandbox facilitates the safe and agile development of the fintech sector.

Dr. Nchemba pointed out that the sandbox will attract domestic and foreign investment in fintech, encourage partnerships, and ultimately contribute to the modernisation of Tanzania’s financial infrastructure. BoT Governor Emmanuel Tutuba echoed this sentiment, stressing that fostering innovation must go hand-in-hand with creating a regulatory environment that mitigates risk and ensures long-term sustainability.

Alongside the sandbox, the ‘Sema na BoT’ platform has been launched as a centralized system for managing financial complaints. The digital platform is designed to enhance accountability, streamline the complaint resolution process, and increase transparency between consumers and financial service providers. Through this platform, customers who face issues with banks, mobile money operators, or other financial institutions can submit grievances directly to the BoT, ensuring faster and more efficient resolution.

The Minister emphasised that improved complaint handling mechanisms would empower consumers, reduce financial misconduct, and build confidence in the formal financial system. The platform is also expected to provide BoT with valuable insights into systemic issues, helping the regulator make informed decisions and enforce standards across the financial industry.

Dr. Nchemba highlighted the broader context of these reforms, noting that Tanzania’s financial inclusion rate has seen remarkable progress, rising from 57% in 2013 to 76% in 2023. With the help of digital innovation and policy support, the government aims to increase this figure to 85% by 2028. He stressed the importance of citizens embracing formal financial systems, noting that such systems offer better protection, improved access to credit, and more opportunities for economic advancement.

Governor Tutuba acknowledged the challenges that remain, especially in reaching rural populations and ensuring the relevance and safety of digital financial services, but affirmed BoT’s commitment to addressing these through strategic partnerships and continuous reform.

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The launch of ‘Sema na BoT’ and the Fintech Regulatory Sandbox represents a bold step toward a more inclusive, transparent, and innovative financial sector in Tanzania. By combining regulatory oversight with consumer empowerment, the Bank of Tanzania is setting the foundation for sustainable economic development and wider financial access for all citizens.