By Charles Mkoka
Tanzania's central bank (BoT) has urged citizens to borrow only from licensed financial institutions, warning that unregulated lending poses significant risks to consumers and that operating without regulatory approval is a criminal offence.
Speaking at the 50th Dar es Salaam International Trade Fair, a senior official from the Bank of Tanzania (BoT) said the central bank was using the (DITF) exhibition to educate the public about the country's financial sector and promote responsible borrowing practices.
Mwile Kauzeni, a Senior Principal Banking Officer in the Bank of Tanzania's Directorate of Financial Sector Supervision, said the institution oversees banks, microfinance institutions and foreign exchange bureaus, while also regulating the growing digital lending sector.
"We have received complaints from citizens who borrowed from institutions that were not licensed," Kauzeni said. "People should seek loans only from institutions that are registered and supervised by the Bank of Tanzania so that they can access safe financial services."
He said lists of licensed banks, microfinance institutions, foreign exchange bureaus and approved digital lenders are available on the central bank's website, enabling borrowers to verify the legitimacy of lenders before taking out loans.
The central bank has also warned operators providing microfinance services without licences to regularise their operations, noting that conducting such activities without approval is a criminal offence punishable by fines, imprisonment or both.
As part of its consumer protection efforts, the Bank of Tanzania has launched a nationwide financial literacy campaign dubbed "Zinduka, Kopa kwa Malengo" ("Be Aware, Borrow with Purpose"), aimed at encouraging Tanzanians to borrow responsibly and for productive purposes.
The campaign seeks to educate borrowers on the importance of taking loans with clear objectives, such as expanding businesses, increasing working capital or investing in agriculture, rather than borrowing without a repayment plan.
Kauzeni said the initiative has already been rolled out in Dar es Salaam and Mwanza and will next be taken to the southern city of Mbeya as part of broader efforts to improve financial literacy and strengthen consumer protection in Tanzania's expanding financial sector.
The campaign comes as digital lending and access to credit continue to grow in Tanzania, increasing the need for greater public awareness of financial risks and the importance of dealing with regulated institutions.
