DODOMA, TANZANIA – A key government official has called on Tanzania’s Deposit Insurance Board (DIB) to intensify its public education efforts, emphasising that a greater understanding of its role is crucial for building public trust and boosting the use of banking services. The call came from the Singida District Commissioner, Godwin Gondwe, during a visit to the DIB’s exhibition booth at the national agricultural show in Nzuguni, Dodoma.
Gondwe praised the DIB for its work but noted that a low level of public awareness persists regarding its functions. “I commend you for the good work you are doing to educate the public about your activities,” Gondwe said after receiving a briefing on DIB’s mandate. “However, I advise you to increase your strategic communication efforts to reach more citizens, especially in local councils, so they can be motivated to use banking services knowing their deposits are protected.”
Accompanying the District Commissioner was the Manyoni District Council Director, Anastazia Tutuba, who echoed the sentiment, suggesting that many citizens do not use banks due to a lack of education provided by the DIB. Gondwe shared a striking example from a recent market fire in Singida, where some citizens were forcibly prevented from entering their burning shops. “After the fire was put out, some explained that they had buried their money. When they were allowed to retrieve it, some pulled out up to TSh 20 million. This shows that there is still a need for education on the importance of saving money in our banks, and the Deposit Insurance Board needs to reach these people with this education,” Gondwe stated.
The Manyoni District Council Director, Tutuba, recommended that the DIB use official meetings with council directors and ward-level government leaders to disseminate information. She noted that many pigeon pea farmers in her district earn substantial income but do not use banking services. Educating them on deposit insurance could give them the confidence to open accounts.
The DIB’s primary function is to protect the deposits of customers in banks and financial institutions. In the event of a bank’s collapse or bankruptcy, the DIB provides compensation for the insured deposits. The organization is funded by the Deposit Insurance Fund, which is contributed to by banks and financial institutions that accept deposits.
This year, the Deposit Insurance Board is participating in the national agricultural, livestock, and fisheries exhibitions in Dodoma, Zanzibar, and regional events in Morogoro, Arusha, and Mbeya, demonstrating its commitment to reaching key stakeholders like farmers who are major contributors to the insured deposit base.