A resolute push towards financial inclusion has taken center stage in Tanzania as His Excellency, Dr. Philip Isdor Mpango, Vice President of the United Republic of Tanzania, unveiled the Third National Financial Inclusion Framework for the years 2023 to 2028.

Speaking during the launch held at the Bank of Tanzania Conference Centre in Dar es Salaam, Dr. Mpango stated that the government is charting a course to bridge socioeconomic disparities, harnessing the power of financial access and empowerment.                      

"Financial inclusion is key to integrating the unbanked into the formal economy, which helps to alleviate poverty, make the poor less vulnerable to financial shocks, broaden the tax base, stimulates public spending and raises living standards for all," Dr. Mpango emphasized, highlighting the far-reaching implications of financial inclusion. 

"In Tanzania, financial inclusion is among top priorities of our reform agenda and constitutes a key objective of the National Development Vision 2025 as well as the National Five-Year Development Plan (2021/22 – 2025/26)," the Vice President stated, elucidating the strategic positioning of financial inclusion in Tanzania's developmental landscape. 

Commending the achievements of the Second Financial Inclusion Framework, Dr. Mpango shared noteworthy statistics that underscored the positive trajectory. He said that the national average of people living within five kilometers from formal financial services has increased to 89 percent in 2023 from 86 percent in 2017, and in some urban areas, inclusion has been achieved by 100 percent.          

According to Finscope Survey (2023), the number of adult population using banking services increased from 16.7 percent in 2017 to 22.2 percent in 2023, aiming to attain 33 percent by 2025/26. The use of formal financial services among adults (age 16 and above) has increased to 76 percent in 2023 from 65.3 percent in 2017, with the gap between men and women narrowing to 3 percent in 2023 compared with 10 percent in 2010.           

"Rapid developments in financial inclusion had a positive impact on growth of the financial sector, which recorded a growth rate of 9.1 percent in 2022 compared to a contraction of 2.7 percent in 2017, he added.

Dr. Mpango candidly acknowledged the remaining challenges, particularly in rural areas, where access to formal financial services remains limited.           

"Despite the achievements attained in expanding financial inclusion in the country, the remaining major challenge is to fully include the entire economically active population to access and use formal financial services (such as banking, insurance, pension, and investments),” he said.
 
Highlighting the multifaceted barriers, the Vice President unveiled the strategic blueprint for the future. "It is for these reasons that today we are launching the Third National Financial Inclusion Framework for the period 2023-2028 that will, I hope, create impetus for addressing economic challenges facing our citizens."
 
Ealier, the Minister of Finance, Hon. Dr. Mwigulu Nchemba, said low uptake of formal financial services is a reason why the National Council for Financial Inclusion was established and hence the development of the Third National Financial Inclusion Framework as a tool to coordinate both the public and private sector to address financial inclusion barriers.
 
“I have been informed that the new framework will address issues of financial literacy, increase access to smartphones which is currently at 19 percent, enhance consumer protection, leverage on technology to improve the delivery of financial services and consider customer needs in the design of financial solutions, he noted.
 
The Chairperson of the National Council for Financial Inclusion and Bank of Tanzania Governor, Mr. Emmanuel Tutuba, also stressed that the implementation of the Third National Financial Inclusion Framework will support the attainment of the Tanzania Development Vision 2025, Zanzibar Development Vision 2050, the National Five-Year Development Plan 2021//22-2025/26 and Financial Sector Development Master Plan 2020/21-2029/30. All these plans focus on enhancing incomes of individuals and reduce poverty inequality, which are well aligned with sustainable Development Goals (SDGs), to which Tanzania is bound as a member of the United Nations.
 
In attendance was, His Excellency Wiebe de Boer, Dutch Ambassador to Tanzania representing Her Majesty Queen Maxima of the Netherlands, who is the United Nations Secretary-General's Special Advocate for Inclusive Finance for Development.         

In her pre-recorded remarks, Queen Maxima stressed that Financial inclusion is a catalyst for jobs creation and enables active participation in an increasingly digital economy. It also provide a safety net against adversities like illness,drought, or accidents, while simultaneously forstering financial health.
 
With the official launch of the framework, Tanzania takes a significant step forward in its mission to build an inclusive financial ecosystem that empowers all citizens and paves the way for a more prosperous future.