Dar es Salaam. Good morning! The Chanzo is here with a rundown of major news stories reported in Tanzania on Thursday August 03, 2023
Tanzania launches third National Financial Inclusion Framework
Tanzania adopted its third National Financial Inclusion Framework for 2023-2028 that aims to enhance access to and usage of a broad range of affordable and high-quality financial products and services for all adults and businesses in order to improve their financial well-being and living standards.
The new framework builds upon the achievements recorded by the second Framework, which ended in December 2022. During this period, the percentage of the adult population accessing formal financial services increased from 86% in 2017 to 89% in 2023.
Speaking at the launch event yesterday, the Guest of Honor, Vice President Dr. Philip Mpango, emphasized that financial inclusion is a crucial driver of socioeconomic development, especially in the post-COVID-19 pandemic era, where income inequality has escalated significantly.
Dr. Mpango commended both state and non-state actors for their efforts in ensuring that the entire economically active population can access and use formal financial services. He highlighted the need to address underlying barriers such as the lack of universal access to national identification cards and insufficient fixed and alternative collateral.
“Financial inclusion is a vital pillar that deserves careful consideration if we are to ensure that nobody is left behind,” said Dr. Mpango.
The new framework is designed to align with and support the country’s broader vision and development plans.
During his remarks, the Minister of Finance of the United Republic of Tanzania, Dr. Mwigulu Nchemba, highlighted that in 2022, the financial sector contributed to the country’s assets growing by 17.2%, while its contribution to the country’s GDP was around 9.2%.
Despite this contribution, Dr. Mwigulu insisted that Tanzania has continued to experience low uptake of financial inclusion in certain areas beyond the use of mobile wallets and microfinances.
“There is low uptake of adults in banking accounts, insurance services, and investment in the capital market,” said Dr. Nchemba.
Due to these reasons, the framework’s strategic objectives are tailored towards improving access, expanding the usage of a broad range of financial products and services, enhancing the quality of financial products and services, and improving the financial well-being of individuals and businesses.
The Framework also prioritizes unlocking barriers to financial inclusion for the underserved and marginalized population.
Emmanuel T. Tutuba, the Governor of the Bank of Tanzania and Chairperson of the National Council for Financial Inclusion in Tanzania highlighted that the third Framework sets out specific initiatives for women, youth, MSMEs, smallholder farmers, fishers, and persons with disabilities to improve their participation in economic activities.
“The new framework will coordinate both the public and private sectors to address barriers such as financial literacy, increase access to smartphones, enhance protection, leverage technology to improve the delivery of financial services, and consider customers’ needs in designing financial institutions,” said Mr. Tutuba.
The Tanzanian government’s efforts to ensure that all individuals have access to and use of financial services began back in the 1990s when Tanzania implemented numerous financial sector reforms.”
National Housing Corporation to launch a housing bond
The Director General of the National Housing Corporation Hamad Abdallah has informed journalists that the corporation is expecting to launch a new housing bond dubbed Nyumbani bond.
The bond is expected to be out within a year, this is in line with the company’s plans to expand its portfolio in real estate but also cater to more Tanzanians.
“We are planning to issue a national housing bond, initial proposals about the bond have been sent to the board. We are also amid the procurement process for the company that will supervise this bond,” said Mr Abdallah.
It was noted that NHC equity has reached Tshs. 5 trillion with the company’s total borrowing being around Tshs. 163 billion. The company’s latest strategy is in revamping its properties in partnership with the private sector, some of the key flagship projects will start at the Kariakoo market.
NHC Director General has made an appeal to the government to allow ownership of land and properties by non-residents saying that it will be a good move in attracting capital to the real estate market.
ACT Wazalendo condemns Niger coup
ACT Wazelendo has released a statement condemning the military coup that happened in Niger on July 26, 2023. ACT Wazalendo, which is one of Tanzania’s largest opposition parties urged the military Junta to restore civilian rule in Niger.
“The people of Niger have the right to choose their leaders through free, fair, and transparent elections, we urged the military junta led by Abdourahamane Tchiani to halt the coup and restore civilian rule,” reads part of the statement. The party has also urged the Tanzania government not to recognize the military junta in Niger.
The Niger coup is the 8th successful coup in Africa within a short period from January 2020 to July 2023. Others occurred in Mali on August 18, 2020, and May 24, 2021; Chad on April 20, 2021; Guinea on September 5, 2021; Sudan on September 21, 2021; and Burkina Faso on January 24, 2022, and September 30, 2022.
Responding to the coup, The Economic Community of West African States (ECOWAS) gave the Niger Junta one week to cede power and took several steps including imposing trade and financial sanctions. Nigeria has also cut its power supply to Niger which depends on Nigeria for 70 percent of its power supply.
ECOWAS has maintained that the military option is the last resort, but it will prepare for the eventuality. To make matters more complicated, the military government of Burkina Faso and Mali have warned that any military intervention against coup leaders in Niger would be considered a “declaration of war” against their nations.
You can also read the analysis, Military Coups in Africa: A failure of Post-Colonial States or Politics By Other Means?
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