Regulatory Alerts2024-01-01
Guidance Note on Change of Ownership, Lease of Licence and Closure of Business by Licensed Microfinance Service Providers (2025)
The Bank of Tanzania has issued a 2025 Guidance Note mandating licensed Tier 2 Microfinance Service Providers in Mainland Tanzania to comply with new procedures for business closure, ownership changes, and licence leasing. Providers intending to close operations must notify the Bank and submit prescribed documentation, while those changing ownership must secure prior regulatory approval before proceeding. A thirty-day moratorium from the January 10 effective date allows previously unnotified providers to regularize their status by submitting the required filings.
Ref. No. FD.56/377/01/2652 10th January 2025 To: All Tier 2 Microfinance Service Providers RE: PUBLICATION OF GUIDANCE NOTE ON CHANGE OF OWNERSHIP, LEASE OF LICENCE AND CLOSURE OF BUSINESS BY LICENCED MICROFINANCE SERVICE PROVIDERS, 2025 Reference is made to the captioned subject. 2. Pursuant to the provisions of Section 12(3) of the Microfinance Act, 2018, the Bank of Tanzania has issued the Guidance Note on change of ownership, lease of licence and closure of business by licenced Microfinance Service Providers, 2025. 3. The Guidance Note shall apply to all Tier 2 Microfinance Service Providers operating in Mainland Tanzania. The effective date of the Guidance Note shall be 10 January 2025; 4. All Microfinance Service Providers who have closed business operations whether temporally or permanently without notifying the Bank are given a moratorium period of 30 days from the date of issuance of the Guidance Note to notify the Bank and submit all necessary documents as prescribed under Section 3.0 of the Guidance Note; 5. A Microfinance Service Provider who intends to close business shall comply with the Guidance Note by notifying and submitting to the Bank all information prescribed under sections 3.0, 3.1 and 3.2 of the Guidance note; 6. A Microfinance Service Provider who intends to change its ownership shall seek and obtain prior approval from the Bank of Tanzania and submit all necessary documents as prescribed under section 4.0 of the Guidance note; and 7. Kindly note that the Guidance Note has been published on the website of the Bank and can be accessed at: https://www.bot.go.tz. 8. Kindly be guided accordingly. Emmanuel M. Tutuba GOVERNOR 16 Jakaya Kikwete Road, P. O. Box 2303, 40184 Dodoma – Tanzania, Email: governoroffice@bot.go.tz, info@bot.go.tz Website: www.bot.go.tz, Telephone: +255 22 223 2541 Direct line: +255 22 223 2501 In reply please quote: THE UNITED REPUBLIC OF TANZANIA BANK OF TANZANIA
Copy: Executive Secretary, Tanzania Microfinance Associations (TAMFI), 54A Uporoto Street, P. O. Box 950, DAR ES SALAAM. “ General Secretary, Tanzania Microfinance Union (TAMIU), P. O. Box 2547, MOROGORO. 2
16 Jakaya Kikwete Road, P. O. Box 2303, 40184 Dodoma – Tanzania, Email: governoroffice@bot.go.tz, info@bot.go.tz Website: www.bot.go.tz, Telephone: +255 22 223 2541 Direct line: +255 22 223 2501