Tier 2 Microfinance: Bank of Tanzania Introduces New Regulatory Submission Framework

Endoxa Admin Banking & Finance, Capital Markets, Fintech

The Bank of Tanzania (“BOT”) has issued the Guidance Note on Submission of Documents by Tier 2 Microfinance Service Providers, 2026 (the “Guidance Note”), published on 21 September 20261.

The Guidance Note introduces a prescribed framework for Tier 2 Microfinance Service Providers (“MSPs”) and applicants when making licence applications, seeking approvals or submitting notifications to the BOT. It is intended to standardise submissions, improve completeness and reduce delays arising from incomplete, inaccurate or inconsistent applications.

The Guidance Note refers to the Microfinance (Non-Deposit Taking Microfinance Service Providers) Regulations, 2026 (the “2026 Regulations”) and states that it does not amend, replace or supersede any law or regulation. It is to be read together with the Microfinance Act, 2018, the applicable Microfinance Regulations and other relevant laws and regulations.

Regulatory position at publication: The Guidance Note refers to the Microfinance (Non-Deposit Taking Microfinance Service Providers) Regulations, 2026. As at the date of this publication, the BOT’s publicly accessible regulations page continued to list the Microfinance (Non-Deposit Taking Microfinance Service Providers) Regulations, 2019. This update refers to the 2026 Regulations based on the references contained in the Guidance Note.

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Mandatory Electronic Payments for Specified Transactions in Tanzania: What You Need to Know

Endoxa Admin Banking & Finance, Capital Markets, Fintech

On 30 June 2026 the Minister for Finance published the Electronic Transactions (Mandatory Electronic Payments for Specified Transactions) Order, 2026, Government Notice No. 158C (Order). The Order was made under section 13(2) of the Electronic Transactions Act (Cap. 442 Revised Edition 2023) and came into force on 1 July 2026. The Order requires that payments for a defined list of transactions must be made and received through electronic means. It forms part of Tanzania’s wider push toward a more digital economy, greater transparency in commercial dealings, stronger tax compliance and better financial inclusion.

WHAT THE ORDER REQUIRES

The Order requires any person who makes or receives payment for a transaction listed in the Schedule must do so through electronic means. The duty applies to both the payer and the recipient. “Electronic Means” is defined broadly to cover any method, system or channel that uses electronic or digital technology. This includes, but is not limited to:

  • Mobile money
  • Bank transfers
  • Electronic funds transfers
  • Payment cards
  • Electronic wallets
  • Point-of-sale (POS) devices
  • Internet or mobile banking
  • Government electronic payment systems

The Order does not constitute a general prohibition on cash payments. The Tanzanian shilling remains legal tender, and the requirement to use electronic means applies only to the categories of transactions specified in the Schedule. Transactions falling outside those categories may continue to be settled in cash.

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