By Charles Mkoka
Dar es Salaam – In a move that has reshaped the
central banking narrative on the African continent, Vice President of the
United Republic of Tanzania, H.E. Dr. Philip Mpango, in July 2025, hailed the
Bank of Tanzania (BOT) for what he called a "monumental leap forward"
in financial innovation. Speaking at the official launch of the Integrated Core
Banking System (iCBS) at BOT Headquarters in Posta, Dar es Salaam, Dr. Mpango
applauded the Bank’s bold vision — and even bolder execution.
With a clear tone of national
pride, the Vice President underscored the achievement as a historic first in
Africa, emphasizing that BOT is the first central bank on the continent to
independently design and deploy a full-scale, in-house core banking system.
Even more compelling? The project came in at a fraction of global
implementation costs, saving Tanzanians approximately TZS 81.32 billion —
proof, he said, that local ingenuity can deliver global-standard solutions.
Shilling sense: Strengthening the Economy, byte by byte
More than just a shiny new
system, iCBS is already transforming how BOT does business. Governor Emmanuel
Tutuba, in his remarks, described it as a game-changer — streamlining
everything from transaction tracking and account reconciliation to donor
reporting, government auditing, and real-time interest calculations.
The result? No more transactional
gridlocks, no more outdated spreadsheets, and a faster, more transparent
banking system that works with Tanzanian precision.
According to Governor Tutuba,
Tanzania’s economic fundamentals are showing strong signs of resilience.
Inflation is under control, the Tanzanian shilling remains steady, and foreign
reserves have surged to a record-breaking USD 6.2 billion as of June 2025.
Adding to the good news, since
the 2024 amendments to the Mining Act, BOT has successfully purchased 6.6
tonnes of pure gold — 110% of its annual target — using Tanzanian shillings,
bolstering national reserves and asserting local currency strength on the
global stage.
Digital
dividends”: A call for responsible innovation
Yet, Dr. Mpango’s message went
beyond celebration — it was also a rallying cry for responsible and inclusive
digitization.
He urged BOT to collaborate
closely with regulators like the Tanzania Communications Regulatory Authority
(TCRA), the e-Government Agency (e-GA), and other ministries to tighten
oversight of digital finance systems. While embracing digital transformation,
he warned, Tanzania must also guard against digital exploitation.
With visible concern, he
addressed the rise of predatory digital lenders who slap borrowers with
sky-high interest, invade users’ privacy, and, alarmingly, publicly disclose
personal borrower information without consent.
"We cannot digitize
financial services and leave the people behind — or worse, unprotected,"
said Dr. Mpango, calling for a national crackdown on unethical lenders and
greater public education on digital financial risks.
He urged financial institutions
to offer affordable, transparent credit products and to step up efforts to
build financial literacy across communities. The goal: a digital economy that
is empowering, not exploitative.
“Future-proofing
finance”: innovation with integrity
Dr. Mpango concluded with a
strong message to Tanzania’s innovators: “Protect what you build.” He
stressed the importance of safeguarding the intellectual property of the iCBS
platform, encouraging BOT to engage with innovation protection bodies to ensure
the system remains secure, scalable, and distinctly Tanzanian.
He also called for ministries to
invest in the country’s innovation ecosystem — from research grants and
incubation hubs to partnerships with universities and the private sector —
ensuring that local minds continue solving local challenges in cost-effective,
culturally relevant ways.
As part of the day’s events, the
Vice President officially closed the Bank of Tanzania’s Historical Museum, a
gesture that symbolized the end of one era. But as one door closed, another
opened wide: Dr. Mpango also inaugurated BOT’s new Online Library, a sleek
digital resource hub that will expand public access to financial knowledge and
scholarly work across Tanzania.
A
Tanzanian tale of tech and tenacity
In the words of Dr. Mpango, “This
is not just a banking system — it is a symbol of what Tanzanians can achieve
when we trust our talent.” With iCBS, Tanzania hasn’t just joined the global
digital finance conversation — it’s leading it, on its terms, and with a
distinctly local heartbeat. And as the applause echoed through BOT’s
headquarters, one thing was clear: the future of Tanzanian finance isn’t coming
— it’s already here.