Dar es Salaam, Tanzania — July 1, 2025
The Tanzania Association of Microfinance Institutions (TAMFI) is stepping into a defining role in transforming the country’s microfinance sector, following the Bank of Tanzania’s (BoT) launch of a far-reaching strategy to tackle predatory lending and improve consumer protection.
Speaking yesterday in Dar es Salaam, BoT Governor Emanuel Tutuba announced that over 2,600 second-tier microfinance institutions must register with either TAMFI or the Tanzania Microfinance Union (TAMIU) within six months—or face deregistration by December this year.
“We have signed agreements to delegate certain supervisory responsibilities to these two associations,” Governor Tutuba said. “This is a critical step to ensure that microfinance providers uphold professional standards, comply with licensing requirements, and deliver fair services to Tanzanians.”
Ending the Era of “Killer Loans”
For years, many borrowers across Tanzania have been burdened by exploitative products—commonly known as mikopo umiza or mikopo ya kausha damu. Governor Tutuba emphasised that the new framework aims to replace this culture with one of responsibility, transparency, and care for consumers.
“Microfinance must empower people, not trap them in endless debt,” he stressed.
Under the new system, TAMFI and TAMIU will lead self-regulation and play central roles in supporting institutions to comply with clear codes of conduct and ethical lending practices.
Building Trust and Expanding Inclusion
TAMFI’s leadership will be crucial in guiding members to enhance service quality, invest in consumer education, and align operations with national development objectives. BoT has set an ambitious target to increase formal financial access from 76% in 2023 to 85% by 2028—a milestone that will require microfinance providers to work closely with communities and leverage digital tools.
“With the rapid expansion of digital finance, microfinance providers have unprecedented opportunities to innovate,” Tutuba noted. “But this must go hand in hand with protecting clients.”
The Governor urged citizens to confirm that any institution they borrow from is registered with BoT and either TAMFI or TAMIU, cautioning that offering credit without a valid license is illegal.
TAMFI Commits to Leading Change
TAMFI Chairperson Devotha Minzi welcomed the reforms as a catalyst for positive transformation:
“We are ready to implement the commitments we have agreed upon with the Bank of Tanzania,” she said. “TAMFI will focus on building capacity among members, strengthening compliance, and ensuring that microfinance institutions truly contribute to economic empowerment.”
By working side by side with TAMIU, TAMFI aims to set high standards for governance, transparency, and client-centered service delivery across the sector.
Looking Ahead
As Tanzania’s financial landscape evolves, TAMFI is positioned to be at the forefront, driving innovation while safeguarding clients. The association’s efforts will be instrumental in replacing reputational challenges with a renewed culture of ethical lending and financial inclusion.
By taking ownership of sector governance and partnering closely with BoT and TAMIU, TAMFI is helping lay the groundwork for a resilient, inclusive, and responsible microfinance industry that works for all.
