New banking licence positions LOLC Tanzania to deepen financial inclusion in Tanzania
The Executive Chairman of the LOLC Holdings, Mr Ishara Nanayakkara (standing on red carpet, left) and the management team of the LOLC Tanzania Microfinance Bank Limited jointly celebrating the bank license acquisition by BoT.
LOLC Tanzania has reached a major milestone in its growth journey after officially transitioning from LOLC Tanzania Financial Services Limited to LOLC Tanzania Microfinance Bank Limited, following the issuance of a Microfinance Bank Licence by the Bank of Tanzania.
The transition marks a significant step in the institution’s evolution, enabling it to expand its financial services while reinforcing its commitment to improving financial inclusion and supporting economic growth across Tanzania.
As a licensed microfinance bank, LOLC Tanzania will continue serving its existing customers without interruption while introducing an expanded range of products and services.
Customers will now have access to savings accounts, fixed deposits with competitive interest rates, enhanced digital banking solutions, deposit products and other banking services designed to make financial services more accessible and convenient.
Chief Executive Officer Thomas Ponniah described the new licence as a landmark achievement that reflects the institution’s long-term vision of empowering individuals, entrepreneurs and small businesses.
The Executive Chairman of the LOLC Holdings, Mr. Ishara Nanayakkara (seated centre), the Chief Executive Officer of the LOLC Tanzania Microfinance bank limited, Mr Thomas Ponniah (seated left) and the management of the LOLC Tanzania take group photo after the official launch of the new licence to become LOLC Tanzania Microfinance bank.
"This transformation represents a major achievement in our journey and reinforces our commitment to supporting economic growth and financial inclusion in Tanzania," he said.
Mr. Ponniah noted that LOLC Tanzania has already impacted more than 80,000 Tanzanians through its financial solutions, helping individuals access capital to improve their livelihoods and build sustainable businesses.
Among its flagship products is the Endesha Chako loan programme, which provides financing to three-wheeler (Bajaj) operators.
The initiative has enabled many young Tanzanians to become self-employed by acquiring income-generating vehicles, creating opportunities for economic independence while contributing to local development.
According to Mr. Ponniah, the acquisition of the Microfinance Bank Licence will enable the institution to extend similar opportunities to many more Tanzanians.
"We have already touched more than 80,000 lives through our financial solutions. With our new banking status, we are better positioned to reach millions more by providing innovative and inclusive financial services that empower communities and support entrepreneurship," he said.
The institution believes that expanding access to affordable financial services remains one of the most effective ways to stimulate entrepreneurship, create employment and improve household incomes.
The Chief Executive Officer of the LOLC Tanzania Microfinance bank limited, Mr Thomas Ponniah.
Through customer-centred products supported by technology, LOLC Tanzania aims to remove barriers that have historically limited access to formal financial services, particularly for underserved communities.
The transition also strengthens the institution’s connection to the global LOLC Group, a multinational conglomerate operating in 27 countries across Asia and Africa.
Over the years, the Group has established itself as a leader in inclusive finance by providing innovative financial solutions to individuals and businesses that are often excluded from traditional banking systems.
Its business model focuses on delivering quick and accessible financing, including collateral-free loans for eligible customers, while integrating digital technologies that simplify banking and improve customer experience.
These innovations have enabled millions of entrepreneurs to establish and grow businesses, creating lasting social and economic impact.
Globally, LOLC’s microfinance and SME finance operations continue to demonstrate considerable scale. The Group manages a gross loan portfolio exceeding US$3.3 billion and customer deposits of more than US$2.2 billion, reflecting its strong financial capacity and extensive experience in delivering inclusive financial services.
For Tanzania, being part of this international network provides access to global expertise, proven business models and innovative banking technologies that can be adapted to meet local needs.
The institution says the new banking licence, combined with the strength of the LOLC brand, will enhance customer confidence, strengthen market recognition and support the delivery of world-class financial services.
The transformation comes at a time when Tanzania continues to promote financial inclusion as a key driver of sustainable economic development.
By increasing access to savings, credit and digital financial services, microfinance institutions play an important role in supporting micro, small and medium-sized enterprises, which are widely recognised as the backbone of the country's economy.
LOLC Tanzania Microfinance Bank says it is committed to working alongside entrepreneurs, small businesses and communities to unlock economic opportunities through responsible and accessible banking solutions.
The institution expects the new licence to accelerate its expansion while enabling it to introduce more innovative products that respond to the changing needs of customers.
As it embarks on this new chapter, the bank has expressed gratitude to the Bank of Tanzania, its customers, shareholders, business partners and employees for their continued trust and support throughout its transformation journey.
With a stronger regulatory status, an expanded portfolio of financial products and the backing of one of the world’s leading inclusive finance groups, LOLC Tanzania Microfinance Bank is positioning itself to play an even greater role in advancing financial inclusion, creating opportunities for entrepreneurs and contributing to Tanzania’s long-term economic growth.
