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The Minister of Finance, Mwigulu Nchemba, has reaffirmed the government’s firm stance on tackling informal money lending in Tanzania.
Speaking at the First Forum of Financial Sector Stakeholders in Dar es Salaam on December 10, 2024, Nchemba highlighted that informal lenders who charge high interest rates and use aggressive tactics to recover debts are facing intensified scrutiny and legal action.
Nchemba urged the public to steer clear of such lenders and instead, turn to recognized and licensed financial institutions that are authorized by the government. He explained that informal lending can create a cycle of financial distress, especially for those who may not fully understand the risks involved.
“We must protect our communities from the exploitation of those who lend money in ways that can harm rather than help,” Nchemba said. “I encourage Tanzanians to seek financial assistance from accredited institutions, which provide structured, fair, and legally compliant loan terms.”
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The warning comes as the government seeks to bolster consumer protection and encourage responsible borrowing. Informal lending, while sometimes offering quick solutions, poses serious risks for individuals who often find themselves under pressure from aggressive debt collection practices.
The finance minister’s message was clear: a more secure and regulated financial system is essential for the country’s growth and stability. Through these measures, the government aims to create an environment where people feel safe and empowered to make sound financial decisions.
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