Dodoma — The Bank of Tanzania (BoT) and commercial banks have been challenged to improve the quality and accessibility of financial services nationwide, with particular emphasis on reaching underserved groups such as retirees.
The call was made by Deputy Minister of State in the President’s Office (Finance and Planning), Juma Makungu Juma, who stressed the need for tailored financial programs and customer-centric services that support long-term financial security.
Speaking in Parliament, the deputy minister underscored the responsibility of financial institutions to equip retirees with the knowledge and tools to make sound investment decisions that ensure stable incomes in old age.
“Banks must go beyond offering generic products. They must develop strategies and services that are responsive to the specific needs of retirees and other vulnerable groups,” said Juma.
“This includes financial education, simplified investment processes, and better customer service.”he added
He recommended a range of low-risk investment instruments such as government bonds including the Samia Infrastructure Bond, Kijani Bond, Jamii Bond, Jasiri Bond, and Sukuk as viable options that offer returns of up to 11 percent annually.
These, he said, can serve as a dependable income source for retirees who often face financial uncertainty after leaving formal employment.
The remarks came in response to a question raised by Mwanakwerekwe MP Ameir Abdalla Ameir, who sought clarity on what support is available to help retirees invest their pensions wisely.
In response, the deputy minister noted that some retirees have already received training on investing in fixed deposits and other secure financial products, but acknowledged that more needs to be done.
While the BoT and financial institutions have taken initial steps, experts argue that access to financial services in Tanzania remains uneven especially in rural areas where digital infrastructure is limited and financial literacy is low.
Many retirees lack the necessary guidance to navigate the complex world of investment, leaving them exposed to poor financial decisions or exploitation.
This challenge reflects a broader issue in the country’s financial system: the need for inclusivity. According to analysts, a more inclusive financial ecosystem would require banks to develop products that are not only accessible but also understandable and relevant to users with varying levels of financial knowledge.
Moreover, there is a growing consensus that financial institutions should partner with government agencies, pension funds, and civil society organizations to deliver targeted education and advisory services.
These efforts would empower retirees and other groups to manage their finances better, ultimately reducing dependency and enhancing national financial resilience.
The Bank of Tanzania, as the sector’s regulator, is expected to play a central role in driving these reforms by encouraging innovation, enforcing consumer protection standards, and incentivizing banks to broaden their reach.
As Tanzania continues its push toward financial inclusion and economic stability, strengthening financial services particularly for retirees will be key to ensuring that the benefits of growth are shared equitably among all citizens.
Source Daily News