More Tanzanians Accessing Financial Services within Five Kilometres - Report
Tanzania, June, 16 2014 -
At least 45 percent of Tanzanians live within 5 kilometres of a financial access point, according to the latest Geographical Information System (GIS) census launched late this week in Dar es Salaam.
The report overhauls the National Financial Inclusion Framework launched in December last year by the Bank of Tanzania that set a proximity target of 25 percent of Tanzanians living within five kilometres of a financial access point by 2016.
“The Financial Access Map 2013 findings show that now 45 percent of Tanzanians live within five kilometres of a financial access point,” said Financial Sector Deepening Trust (FSDT) Technical Director Sosthenes Kewe.
He pointed out that the region with highest proximity is Dar es Salaam where 100 percent of the population lives within the five km distance while Zanzibar has the lowest proximity overall.
The findings further revealed that, there are now 55,927 cash points in the Mainland and Isles. The cash points comprise bank infrastructure (branches of commercial and community banks and ATMs), microfinance institutions branches, mobile money agents and third party payment providers and points of sales.
But, Kewe noted that mobile money agents and third party payment providers and point of sales (maxmalipo, selcom & buttom pay) had completely transformed the financial services delivery covering the whooping 93 percent of all access points.
“Majority banks are within one kilometre or less from each other,” he added.
Presenting the Health and Profitability of Agent Networks in the country, Mike McCaffrey, Head of Dijital Finance Africa at MicroSave said only 4 percent of agents in the country make losses compared to 11 percent of similar agents in Uganda.
He says 49 percent of agents in Tanzania earn at least US$ 100 per month in profits, compared to only 40 percent in Uganda. “Tanzania actually has lower median revenue than Uganda, but higher overall profitability due to low operational expenses,” he added.
Launching the GIS Census financial access points 2013, Lila Mkilla Deputy Governor at the Bank of Tanzania said BoT is now moving to ensure quality delivery of financial services.
He said the challenge pending proper supervision of the financial sector is lack of proper coordination between the BoT under the ministry of finance and TCRA under the ministry of science, communication and technology.
“We’re also working on the matter to ensure there is proper supervision,” he said without going further into details.