BoT launches price comparison platform to cut borrowing costs

Dar es Salaam. The Bank of Tanzania (BoT) has launched a digital Price Comparison (Kilinganisha Bei) platform that enables consumers to compare fees, charges and interest rates offered by financial institutions before choosing financial products and services.

The platform is designed to improve transparency and help consumers make informed financial decisions by providing easy access to pricing information across participating institutions.

Speaking at the 50th Dar es Salaam International Trade Fair (DITF), BoT Financial Analyst in the Directorate of Financial Deepening and Inclusion, Mr Fanuel Kijoji, said the platform allows users to compare the costs of banking products and services, making it easier to identify the most affordable option.

"Consumers can compare one bank with others or review all participating institutions to identify the provider offering the most suitable and affordable product for their needs," he said.

Mr Kijoji said the initiative is expected to strengthen competition in the financial sector, encouraging institutions to offer more competitive pricing while improving consumer choice.

"The Price Comparison platform enables consumers to select products that match both their financial needs and their budgets. Increased competition among financial institutions will also contribute to more affordable financial services," he said.

The platform currently covers banking products and services, with plans to expand it to include microfinance institutions and payment service providers.

Mr Kijoji said the initiative supports Tanzania's financial inclusion agenda by giving consumers better access to information needed to make sound financial decisions.

He said the high cost of financial services and limited awareness of available financial products remain significant barriers to the use of formal financial services.

"Many consumers are familiar with only a limited range of financial products and therefore miss better and more affordable options. This platform enables them to compare available services before making a decision," he said.

Mr Kijoji also advised borrowers to assess the total cost of borrowing rather than focusing solely on interest rates, noting that additional fees and charges can substantially increase loan costs.

"Consumers should compare all charges associated with a loan through the Price Comparison platform before borrowing to identify the lender offering the most affordable and manageable terms," he said.

He warned that failure to compare available options could leave borrowers facing unnecessary repayment challenges, additional penalties and, in some cases, the loss of assets used as collateral.