Dodoma — The Vice-President Samia Suluhu Hassan has unveiled a ten-year National Microfinance Policy (NMP) in a bid to provide low income population with financial services.
The NMP that will run from 2017/18-2027/28 set to provide legal and regulatory framework that ensures a stable, vibrant and inclusive microfinance sub sector.
The Vice-President noted here yesterday the implementation of NMP would enable the low income population which was excluded from financial services to begin benefiting from the services.
"The implementation of NMP will provide an ideal environment for low income population to increase income," observed the Vice President at a ceremony to launch the implementation of NMP.
The NMP will create enabling environment that promotes the development of appropriate and innovative micro-finance products and services to meet the real needs of the low income segments so as to enhance economic growth and accelerate poverty reduction.
Ms Hassan urged the financial institutions to join hands with the government to empower low income population, pointing out that the financial institutions can play a vital role to empower the population.
"The financial institutions should help to impart knowledge on financial issues to the low income population," she said. Ms Hassan directed all regional councils to earmark a 10 per cent for economic empowerment focusing on youth and women and that the regional authorities should set aside special areas for petty traders carry out their activities without interruption.
The new NMP policy came after reviewing the old plan that came into being in some 17 years ago due to a number of political and technology changes. The Finance and Planning Minister, Dr Philip Mpango, said that the government came up with the idea to review the NMP of 2000 due to a number of changes in microfinance sector.
"NMP 2000 has witnessed a growing number of microfinance service providers hence the need to review the policy to cope with the changes," said the Minister.
Dr Mpango pointed out 72 per cent of adult population was currently using financial services in the country which includes Village Community Bank (VICOBA), financial institutions and mobile transaction.