Regulatory Alerts2025-01-01
The Zanzibar Microfinance Service (Non-Deposit Taking Microfinance Service Providers) Regulations, 2025
Issued by the Zanzibar Minister of State for Finance and Planning under the 2023 Microfinance Service Act, these regulations establish comprehensive licensing, management, and operational frameworks for Tier Two non-deposit taking microfinance providers operating in Zanzibar. The Bank of Tanzania must approve applications based on capital, integrity, and fit-and-proper criteria, while mandating governing bodies with Tanzanian majority, strict activity restrictions (prohibiting public deposits and foreign exchange), and mandatory internal and external audits. Providers are required to maintain accurate financial records, submit monthly credit data to reference bureaus, adhere to standardized lending policies and loan lifecycle procedures, and comply with capital, liquidity, and solvency thresholds under continuous regulatory supervision.