Individuals taking part in BoT financial markets up by two percent

The number of ordinary people taking part in the financial markets being conducted by the Bank of Tanzania (BoT) has increased to 2 percent for the past one year.

Speaking to this paper at an the going 38th Dar es Salaam International Trade Fair in the city on Sunday, the BoT Senior Financial Analyst, Mohamed Kailwa, said this is a clear indication that the level of awareness on financial market matters among individual Tanzanians has slightly increased.

Individuals are now taking part fully in financial markets at BoT as compared to few years ago when most of the participants were organisations.

The major participants in the financial markets are pension funds, commercial banks and the Unit Trust of Tanzania (UTT)
The increase is a result of the countrywide campaign which conducted by the Bank through various ways, he said.

“We have been educating people through the media and trade fairs on the importance of financial markets for their development,” he said.
Explaining, he said, financial markets play a crucial role because they ensure good returns as compared to other money sources.

Meanwhile, the BoT has called upon Tanzanians with vital projects which have trickle down effect and that which can contribute to goverment revenue and employment to apply for Small and Medium Enterprise Credit Guarantee Scheme (SME-CGS).

The objective of the scheme among other things is to promote and support small and medium enterprises (SMEs) which play a significant role in economic growth.

The scheme is managed by the Bank of Tanzania as an agent of the government, he said.

The SMEs can access the guarantee facility through the banks and financing institutions.

The scheme provides credit guarantees to participating financial institutions relating to short and medium term financing to SMEs; and to cooperate with various stakeholders in promoting SMEs entrepreneurial skills.

“We guarantee entrepreneurs with vital projects which have trickle down effects that can contribute on tax revenue and employment. These can get a guarantee from the Bank of Tanzania,” Kailwa said.

Explaining, he said: “Individuals with wise ideas that can make him create employment, can broaden tax base, but lack collateral, BoT can guarantee them to secure loans and implement the intended project,”.

BoT was established under the Bank of Tanzania Act
in 1965. However, in 1995, the government decided that the central bank had too many responsibilities hindering its other objectives.
As a result, it introduced the Bank of Tanzania Act 1995, which gave it the single objective of carrying out monetary policy. 

SOURCE: IPPMEDIA

• 389