BOT extends period for registration of microfinance service providers

What you need to know:

  • Bank of Tanzania (BoT) Governor Florence Luoga said that it was the Ministry of Finance and Planning’s expectation that the extension will enable microfinance finance providers will make adequate preparations and submit completed applications that meet the requirements of the Act and Regulations.

Dar es Salaam. The government has extended deadline for submitting applications for registration or license of microfinance service providers to April 30, 2021.

Bank of Tanzania (BoT) Governor Florence Luoga said that it was the Ministry of Finance and Planning’s expectation that the extension will enable microfinance finance providers will make adequate preparations and submit completed applications that meet the requirements of the Act and Regulations.

In December 2019, the Central issued a Public Notice on the Micro Finance Services Act of 2018 which came into effect on November 1, 2019.

Among other things, the report referred to Section 57 of the Micro Finance Services Act which requires all micro financial service providers to submit applications for a license or registration to the Central Bank or be suspended within 12 months after the Act came into force on October 31, 2020.

“The Central Bank has received requests from many stakeholders to extend the registration and licensing period so that they can submit applications that comply with the requirements of the relevant laws and regulations,” he said.

He said, as was earlier directed, applications for registration or license that should be submitted include microfinance providers of grade 2 should submit their license applications to BoT headquarters or its branches located in Arusha, Mwanza, Zanzibar, Mbeya, Mtwara and Dodoma.

Microfinance service providers of grade 3 should submit their license applications to the office of the Registrar of Regional Cooperative Societies, through the application process for the license of the Cooperative Development Commission.

Service providers of grade 4 should apply for registration at the nearest local government Offices.

“The central Bank wishes to warn the public about misleading advertisements and directives made by unscrupulous individuals. It urges public to disregard any advertisements and instructions regarding the licensing or registration that is not from the relevant authority,” he said.

The central Bank advises the public to contact the relevant authorities when faced with various challenges in the process of applying for a license or registration for the microfinance.