The world is today witnessing the great economic growth due to the increase of population and modification of technology (FinTech). The financial markets experience the numerous increase of innovation that forces the economic trends to change globally. Tanzania is not an island on its own it share these global economic impacts.
The government of Tanzania realizing such, passed an Act of Parliament, The microfinance Act 2018 that specifically is mandated to regulate the operations of the financial Institutions and give the operative framework of how these financial institutions must operate.
The sole purpose is to give accessibility to the financial institutions in Tanzania cope with the global economic pace. This affects the national economy at large it is in this light all financial institutions in Tanzania are regulated amongst many things.
The Microfinance Act covers and gives shield to microfinance institutions with additions or recognition of the Social Cooperative Societies famously known as SACCOS and VICOBA and Small scaled financial institutions in the law recognized as Individual Money Lenders.
The inclusions of these small scaled financial institutions comes from the ambitions and dream of the Late Mwl. Julius Kambarage Nyerere, first president of the United republic of Tanzania, who in his time emphasized formation of Social Economic Unions in Tanzania. He also believed and wished that the National economy be structured from the struggle and activities of these Socio-economic unions. These unions were formed by farmers and civil servants at that time.
Mwl. Nyerere believed that, Social Economic Unions were the basic source of building the nation’s economy and were solid institutions with which they did not only shape the economic status alone but breed the sense of togetherness as one Community. Despite the failure that happened in the mid-of 1990’s in transformation to the industrial economy. The Government has now made al in its power to relive the dream of Late Mwl. Julius Nyerere and that is realized in the Microfinance Act of 2018.
Among many requirements of the law is financial institutions to deploy and use of financial technology systems (FinTech). It is this course that Amala Core Banking is designed and prepared to serve the financial institutions with the perfect, premium, accurate and efficient system for Financial Institutions in Tanzania.
We are dedicated to adding value in Financial Institutions’ operations and contribute the growth of the economy in light of the global economic demands and for that we together commemorate by living the dream of Mwl. Nyerere.
