Dar es Salaam, 11 August 2025 — In a groundbreaking shift toward participatory regulation, the Bank of Tanzania (BoT) has formally designated the Tanzania Association of Microfinance Institutions (TAMFI) and the Tanzania Microfinance Institutions Union (TAMIU) as Guided Self-Regulatory Institutions (GSRIs). This strategic move marks a pivotal moment in the evolution of Tanzania’s microfinance sector.
Under the newly introduced framework, Tier II microfinance providers must register with TAMFI or TAMIU within six months and align with robust self-regulation agreements. These bodies will promote ethical market conduct, manage dispute resolution, and ensure member adherence to best practices.
The BoT will retain core supervisory duties—including license issuance and monitoring—while leveraging the associations’ reach and peer-driven influence to reinforce governance and consumer protection.
BoT Governor Emmanuel Tutuba emphasized that this initiative reflects a shared vision: building a trustworthy, transparent, and user-friendly microfinance ecosystem that strengthens financial inclusion across the nation.
Why This Matters
Enhanced Accountability and Trust
Entrusting TAMFI with self-regulatory responsibilities elevates its role from advocacy to enforcement—deepening institutional credibility and building trust with underserved communities.
Harnessing Peer Influence for Compliance
Peer-led regulation enables more responsive oversight, faster issue resolution, and tighter adherence to ethical norms.
Amplified Financial Inclusion
By empowering local-level governance, the framework strengthens outreach—especially vital for small businesses and rural entrepreneurs who depend on Tier II services.
Foundation for Digital and Sustainable Growth
TAMFI’s prior work—including sector digitalisation and a longstanding Code of Conduct—positions it to drive innovation and embed sustainable practices across member institutions.
Looking Ahead
As TAMFI steps into its role as a GSRI, its evolving mandate could spur:
- Expansion of digital tools for MFI operations and client services.
- New partnerships and capacity-building programs for Tier II institutions.
- Better data transparency and reporting norms within the network.
- A blended regulatory architecture that pairs strong oversight with industry-led stewardship.
Bottom line: In this era of guided autonomy, TAMFI embodies a forward-looking regulatory model—one where collaboration, inclusion, and innovation sit at the core of Tanzania’s microfinance transformation.