NATIONAL FINANCIAL INCLUSION FRAMEWORK (2023-2028)

The Bank of Tanzania's National Financial Inclusion Framework (NFIF) 2023-2028 represents the third strategic roadmap for advancing financial inclusion across Tanzania. Building on the successes of previous frameworks, this iteration aims to significantly expand the access to and usage of affordable, high-quality financial products and services for all adults and businesses, with a particular focus on underserved segments such as rural residents, smallholder farmers, youth, women, and persons with disabilities. The Framework underscores a collaborative public-private sector approach, leveraging digital innovations and strengthening the regulatory environment to foster financial well-being and contribute to national development goals. Legal professionals must understand its implications for compliance, product development, and consumer protection within the evolving Tanzanian financial landscape.

Tanzania has embarked on a renewed commitment to fostering an inclusive financial sector with the launch of the National Financial Inclusion Framework (NFIF) 2023-2028 by the Bank of Tanzania (BoT). This latest framework, the third in a series of strategic initiatives, serves as a comprehensive blueprint designed to deepen financial access and usage across the United Republic. It is a critical component of the nation's broader economic development agenda, including the Tanzania Development Vision 2025 and Zanzibar Development Vision 2050, aiming to ensure that all segments of the population and businesses can participate meaningfully in the formal financial system.

The NFIF 2023-2028 is not merely a policy statement but a strategic directive that will shape the regulatory landscape, influence financial product innovation, and demand heightened compliance from financial service providers. For legal practitioners, understanding the nuances of this Framework is paramount, as it directly impacts advisory roles, transactional work, and regulatory compliance for banks, microfinance institutions, payment service providers, and other entities operating within Tanzania's dynamic financial ecosystem. This article will explore the foundational legal and regulatory context, key objectives, and practical implications of the NFIF 2023-2028 for legal professionals.

Tanzania's journey towards comprehensive financial inclusion has been progressive, marked by two preceding National Financial Inclusion Frameworks (2013-2017 and 2018-2022). These earlier frameworks laid the groundwork for significant advancements, leading to an increase in the percentage of adults accessing formal financial services from 86% in 2017 to 89% in 2023, and usage growing from 65% to 76% over the same period. This notable progress has largely been attributed to the rapid adoption of digital financial services, increased awareness, and robust public-private sector collaboration.

Despite these achievements, the Bank of Tanzania, acting as the National Secretariat to the National Council for Financial Inclusion, acknowledges persistent disparities. Significant segments of the population, including rural residents, smallholder farmers, youth, and women, continue to face high levels of financial exclusion. The BoT's mandate extends beyond monetary policy to include licensing, regulating, and supervising a broad spectrum of financial institutions, such as commercial banks, microfinance banks, and payment service providers, thereby playing a central role in ensuring the stability and integrity of the financial system. The NFIF 2023-2028, therefore, builds upon past successes while strategically targeting these remaining gaps, aligning its vision with national development plans like the Tanzania Development Vision 2025 and the Financial Sector Development Master Plan 2020/21-2029/30.

The National Financial Inclusion Framework 2023-2028 is underpinned by a robust legal and regulatory architecture designed to facilitate its objectives. Central to this framework are several key pieces of legislation and regulatory instruments. The **Microfinance Act, 2018** (Act No. 10 of 2018), for instance, provides the legal basis for the licensing, regulation, and supervision of microfinance businesses, empowering the Bank of Tanzania to oversee this crucial sector that serves a significant portion of the financially underserved population. This Act formalizes microfinance institutions, aiming to enhance stability and security while encouraging adherence to regulatory standards, which is vital for consumer trust and systemic soundness.

Furthermore, the **National Payment Systems Act, 2015** (Act No. 4 of 2015), along with its subsidiary regulations like the Payment Systems (Electronic Money) Regulations, 2015, and the Payment Systems (Licensing and Approval) Regulations, 2021, governs the rapidly expanding digital financial services landscape. This legislation empowers the BoT to regulate electronic payment instruments, electronic money issuers, and payment system service providers, ensuring the integrity and efficiency of digital transactions, including mobile money services which have been instrumental in driving financial inclusion. The Framework also places emphasis on strengthening financial consumer protection, a critical element for building trust in formal financial services. The **Bank of Tanzania (Financial Consumer Protection) Regulations, 2019** (G.N. No. 884 of 2019) and the subsequent **Guidelines for Handling Financial Consumer Complaints, 2025**, mandate financial service providers to establish robust mechanisms for addressing consumer grievances, ensuring fairness, transparency, and timely resolution.

The NFIF 2023-2028 specifically targets disproportionately excluded segments, including women, youth, Micro, Small, and Medium Enterprises (MSMEs), smallholder farmers, and persons with disabilities, by outlining specific interventions to expand their access to and usage of quality financial services. This focus necessitates the development of tailored financial products and services, which in turn requires legal innovation and careful navigation of existing and new regulations. For example, the recent **Banking and Financial Institutions (Non-Interest Banking Business) Regulations, 2025** (G.N. No. 688 of 2025), issued under the Banking and Financial Institutions Act, exemplifies the regulatory efforts to diversify financial offerings and cater to specific market needs, such as Shari'ah-compliant financial services. While the framework promotes digital financial services, the legal implications of levies on electronic money transactions, as amended in the National Payment Systems Act, 2015, by the Finance Act 2022, require careful consideration to ensure they do not inadvertently hinder the drive towards a cashless economy or disproportionately affect low-income users. The BoT's ongoing commitment to innovation is also evident through initiatives like its Fintech Regulatory Sandbox, which provides a controlled environment for testing new financial technologies, further shaping the future regulatory landscape.

The National Financial Inclusion Framework 2023-2028 is a pivotal policy document that will profoundly influence Tanzania's financial sector and, by extension, the practice of law within this domain. For legal professionals, the Framework necessitates a deep understanding of its objectives and the underlying regulatory instruments. This includes advising financial institutions on compliance with licensing requirements under the Microfinance Act, 2018, navigating the intricacies of the National Payment Systems Act, 2015, for digital financial services, and ensuring adherence to the stringent consumer protection regulations.

Practitioners must be prepared to guide clients through the development of innovative and inclusive financial products tailored for underserved segments, while also anticipating and responding to evolving regulatory interpretations and new directives from the Bank of Tanzania. The emphasis on digital transformation, consumer trust, and targeted interventions for vulnerable groups presents both challenges and opportunities for legal expertise. Staying abreast of the annual financial inclusion reports and engaging with the National Council for Financial Inclusion's initiatives will be crucial for legal professionals to effectively contribute to and navigate Tanzania's journey towards a truly inclusive financial future.