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Population (millions) |
35.2 |
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Gross domestic savings (% of GDP) |
10.5% |
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% Population under $2/day (PPP) |
60% |
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Size of informal sector |
43.1% |
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Regulated microfinance institutions |
Banks (commercial, regional, and rural), non-bank financial institutions, and savings and credit cooperatives |
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Non-regulated sources of microfinance |
NGOs |
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Predominant informal finance mechanisms (ROSCAs, tontines, etc.) |
Upatu is the most prevalent method of savings and credit, in 26 % of villages, and mostly by women. Upatu involves 10 — 20 members who know and trust each other, in a rotating savings and credit association. (See Randhawa and Gallardo 2003) |
» More country data from the Microfinance Information Exchange Market
General Approach to Regulating
Based on the Comparative Database on Microfinance Regulation by the IRIS Center of the University of Maryland|
Commercial Banks (including Regional Banks) |
Non-Bank Financial Institutions (NBFIs) |
Savings and Credit Cooperatives |
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Microfinance Companies |
NBFIs |
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Definition or description of institution |
A bank is a financial institution authorized to receive money on current account subject to withdrawal by check. (See section 3 of 1991 Act.) Only three regional banks have so far been established and the indications are that these banks have been established principally to address the requirements for banking services of community-based microfinance institutions and organizations — the SACCOs and other non-financial primary cooperative societies. (See Randhawa and Gallardo 2003) |
A financial institution licensed by the Bank of Tanzania as a microfinance institution under section 3 of the Act to undertake banking business mainly with individuals, groups and micro enterprises in the rural or urban area of Tanzania Mainland and Tanzania Zanzibar |
A non-bank financial institution is any person authorized by law or the Bank to engage in banking business not involving the receipt of money on current account subject to withdrawal by check. NBFIs can be either deposit-taking or non-deposit taking |
Legal entity established by the voluntary membership of private or public persons for the purpose of depositing their savings and providing credits to its members |
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Guidelines & restrictions on financial services |
Permitted: accepting and issuing letters of credit, drafts, bills, etc.; checking, buying and selling foreign exchange and gold, loans, acquiring securities. Applicants for banking licenses must clearly state to the Bank of Tanzania if the applicants intends to offer financial services beyond traditional banking services. |
Permitted: Accepting savings and passbook deposits from the public, making micro-loans Prohibited: Foreign exchange business, investment in enterprise capital, opening current accounts, purchase or acquisition of land, participation in underwriting and placement of securities |
Permitted: Provide credit to consumers and businesses, act as an investment bank by underwriting debt or equity securities of other companies, creating mutual funds. Deposit-taking allowed Prohibited: For non-deposit taking non-bank financial institutions, checking is prohibited |
Prohibited: Accepting deposits or making loans to non-members |
» Download Country Profile of Microfinance Regulation
Tanzania Postal Bank
From the paper: "The Provision of Microfinance Services by Savings Banks: Selected Experiences from Africa, Asia and Latin America’, 2004, pages 56-63
By: Hugues Kamewe and Antonique Koning
Strengthening savings at postal savings banks: Tanzania Postal Bank
In 2001, Tanzania Postal Bank (TPB) found itself in an increasingly competitive market for low-income depositors. This one-page case describes some of the challenges facing postal savings banks and how TPB addressed them.
This case study can be found in Savings Operations for the Poor: An Operational Guide, edited by Madeline Hirschland, forthcoming from Kumarian Press (
See also:
Microfinance in Africa: Experiance and lessons from Selected African Countries, 2004, by Basu, A., Blavu, R.& Yulek, M.
Reinventing Postal Savings Institutions in Africa: A New Role as Large-scale Microfinance Providers, 2005, by Kamewe, H.
Housing Themselves in Informal Settlements: A Challenge to Community Growth Processes, Land Vulnerability and Poverty Reduction in Tanzania, Wakuru MAGIGI and B. B. K. MAJANI, 2006