Tanga. The Minister of Finance, Ambassador Dr Khamis Mussa Omari, has directed the Bank of Tanzania (BoT) to strengthen oversight of the financial sector in a bid to protect citizens from the risks associated with borrowing from unregulated lenders.
The directive targets the rising use of high-interest, exploitative loans popularly known as “kausha damu”, which have left many borrowers losing property and other valuable assets due to punitive and unfavourable lending terms.
Speaking on behalf of the minister during the National Financial Services Week celebrations held at the Usagara Grounds in Tanga, Deputy Minister of Finance Laurent Luswetula urged members of the public to exercise caution before taking loans.
He advised borrowers to seek accurate information from the BoT to verify the legitimacy of financial institutions, noting that the central bank maintains an official register of all licensed lenders operating in the country.
Deputy Minister for Finance Laurent Luswetula being welcomed as he arrived at the Usagara grounds in the city of Tanga to officially open the National Financial Services Week.
“Citizens should use the BoT list as a key reference to avoid falling into unsafe and illegal lending arrangements,” Mr Luswetula said.
Meanwhile, a representative of the Permanent Secretary in the Ministry of Finance, Ms Dionisia Mnyema, said the celebrations form part of the implementation of the National Financial Services Master Plan, a 10-year strategy aimed at expanding access to financial education across the country.
She said the programme seeks to equip citizens with the knowledge needed to make informed financial decisions, including saving, borrowing responsibly and using safe financial services.
Separately, the Managing Director of the TIB Development Bank, Mr Deogratias Kuyukwa, said the bank was ready to work with the government to address challenges affecting business and investment, particularly in the mining, tourism andindustrial sectors.
He said such collaboration would improve access to affordable capital and help spur national economic growth.
