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Tanzania: fintech & payments regulation

Regulated

Tanzania fintech & payments: BoT-regulated payments/microfinance; CMSA-regulated capital markets; no standalone VASP law

Lead regulator:
Bank of Tanzania
Key law:
National Payment Systems Act, 2015; Microfinance Act, 2018
Last updated:
2026-07-12

The Bank of Tanzania (BoT) is the primary supervisor for payments, electronic money, and microfinance. Electronic money licenses are restricted to licensed Mobile Network Operators (MNOs), with banks and existing non-MNO entities exempted from this restriction. Digital lenders operating as Tier 2 Microfinance Service Providers must notify the BoT and obtain a no-objection letter to continue operations.

The Capital Markets and Securities Authority (CMSA) regulates capital markets fintech, including investment-based crowdfunding, private equity, venture capital, and regulatory sandboxes for innovative products. These activities require specific licensing and compliance with CMSA guidelines.

Microfinance services are structured under a four-tier licensing framework, with distinct capital and operational requirements for each tier. The BoT oversees Mainland Tanzania, while Zanzibar has its own Microfinance Service Act and regulations, also supervised by the BoT in coordination with local authorities.

Who regulates

  • Bank of Tanzania

    Primary supervisor for payments, electronic money, microfinance, and financial institutions.

    [1][2][3]

  • Capital Markets and Securities Authority

    Supervisor for capital markets, including crowdfunding, PE/VC, and regulatory sandboxes.

    [4][5][6]

Core laws & rules

  • National Payment Systems Act (2015)

    Establishes the legal framework for payment systems and electronic money, including restrictions on E-money license issuance to MNOs.

    [1]

  • Microfinance Act (2018)

    Establishes a four-tier regulatory framework for microfinance service providers, licensing, and supervision by the BoT.

  • Capital Markets and Securities Act (2010 (Amended))

    Establishes the CMSA and provides the legal basis for regulating capital markets activities, including crowdfunding and investment advisory.

    [7][8]

Licensing & registration

  • Electronic Money

    Licenses restricted to licensed Mobile Network Operators (MNOs). Banks and existing non-MNO entities are exempted from this restriction.

    [1]

  • Digital Lending (Tier 2 Microfinance)

    Digital lenders must notify the BoT within 14 days and obtain a no-objection letter within 30 days to continue operations. Capital: TZS 20,000,000

    [3][9]

  • Investment-Based Crowdfunding

    Requires licensing under CMSA guidelines, with rigorous due diligence on issuers and investors.

    [6]

Restrictions & warnings

  • Electronic money licenses are restricted to licensed MNOs, with exemptions for banks and existing non-MNO entities.

    [1]

  • Digital lenders must obtain prior no-objection from the BoT to continue operations.

    [3]

Direction of travel

  • The regulatory framework is evolving with new regulations for microfinance in Zanzibar and updated guidelines for digital lenders and crowdfunding.

    [10][4]

Sources

  1. Restriction on Issuance of Electronic Money Licenses · 2020-12-18
  2. The Microfinance Act 2018 · 2018-01-01
  3. Guidance Note on Digital Lenders Under Tier 2 Microfinance Service Providers, 2024 · 2024-01-01
  4. Capital Markets and Securities (Regulatory Sandbox) Regulations 2024 · 2024-09-04
  5. Capital Markets and Securities (Private Equity and Venture Capital) Regulations, 2024 · 2024-09-04
  6. Capital Markets and Securities (Investment-Based Crowdfunding) Guidelines · 2024-06-04
  7. Capital Markets and Securities (Amendments) Act, 2010 · 2019-12-11
  8. Capital Markets and Securities Act · 2019-12-11
  9. Tier 2 Microfinance Service Providers · 2020-03-17
  10. The Zanzibar Microfinance Service (Non-Deposit Taking Microfinance Service Providers) Regulations, 2025 · 2025-01-01

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This guide is compiled automatically from 10 primary-source documents published by Tanzania's regulators, reviewed by RegAlert, and refreshed monthly (last updated 2026-07-12). It is not legal advice — always confirm requirements with the regulator or local counsel before acting.