The Bank of Tanzania has recently delegated its powers and
functions by providing that the Savings and Credit Cooperative
Societies shall be regulated by the Tanzania Cooperative
Development Commission, and the Community Microfinance Groups shall
be regulated by Local Government Authorities. This article outlines
the new licensing requirements and the powers or functions that
have been delegated under the Microfinance Act in detail.
The Microfinance Act No. 10 of 2018 (the Act)
provides that an application for a licence under Tier 3 (i.e. the
Savings and Credit Cooperative Societies or SACCOS) or Tier 4 (i.e.
the Community Microfinance Groups) may be made to the Bank of
Tanzania (BoT) or Delegated Authority. A Delegated Authority is a
public institution mandated by the BoT to execute its functions and
powers under the Act.
