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Africa Business News of Wednesday, 24 February 2021

Source: thecitizen.co.tz

Bank of Tanzania insists on dealine for registration of microfinance institutions

The Bank of Tanzania headquarters. PHOTO | FILE The Bank of Tanzania headquarters. PHOTO | FILE

Bank of Tanzania (BoT) has on Tuesday said that final date for registration of all microfinance institutions is April 30, stressing that Vicoba registration is free of charge.

BoT Manager for Microfinance and Buresu De Change Supervision, Mr Victor Tarimu said the Vicoba is owned by its members and therefore don't need to pay a fee to be registered.

He said the institutions have to be registered according to the microfinance act of 2018 that aims to supervise the business

He said the microfinance sector is among important sectors in the country especially for low income earners that helps in increasing income and reducing poverty.

"Among institutions involved include microfinance banks that mobilize deposits and small loans, institutions that issue loans without collecting deposits, Vicoba and Saccos," he said.

According to him, so far they have received 663 requests for registration and 293 license requests for institutions that issue loans without receiving deposits by February 21 this year.

He noted that they have also received 241 requests out of 1000 saccos institutions for registration and that Vicoba are ready for registration.

Explaining about its registration, he said social development officers have been delegated to register Vicoba without charging any fee and that any cost arising from the exercise will e sorted by BoT.

He said microfinance institutions are a bridge that enables the government to take financial services to the grassroots level

and therefore the government has no plans to charge fee, interest or taxes.

Explaining he said the government aimed to put up a good environment to enable them provide better services.

However he noted that while registration for Vicoba was free, institutions that issue loans without mobilising deposits have to pay a fee of Sh500,000 for companies and Sh300, 000 for individual companies.

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