Youth Advised on Reporting Financial Challenges

Youth have been urged to submit their complaints regarding financial services to the relevant authorities for swift resolution and to address various challenges facing the financial sector, including fraud and high-interest loans (“blood-sucking loans”).

The authorities where these complaints should be lodged include the Bank of Tanzania, Capital Markets and Securities Authority, Insurance Regulatory Authority, and the Prime Minister’s Office.

This call was made in Ikungi, Singida region, by Assistant Commissioner of the Financial Sector Development Department at the Ministry of Finance, Ms. Dionesia Mjema, following a financial education session at a youth convention during the Uhuru Torch Night.

Ms. Mjema stated that the government has established rules and guidelines for these complaints to be heard and addressed according to financial laws.

“They should go to the Bank of Tanzania if their complaints concern banking issues, to the Capital Markets and Securities Authority for issues related to securities and capital, to the Insurance Regulatory Authority for insurance matters, and to the Prime Minister’s Office for all matters related to pension benefits,” explained Ms. Mjema.

She mentioned that during the convention, the Ministry of Finance provided financial education to youth on personal finance management, loans, savings, investments, retirement planning, Small Financial Services Act, and various guidelines aimed at protecting financial service users.

“We have educated youth about various opportunities available in the financial sector, including investing in capital markets, mutual funds, accessing loans from banks and financial institutions, and small financial services,” Ms. Mjema emphasized.

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The aim of this education, she added, is to empower citizens, especially youth, to recognize opportunities in the financial sector to build their own, their families’, and the nation’s economy.

Meanwhile, Peter Musa, Coordinator of Small Financial Services in Ikungi District Council, stated that they invited the Ministry of Finance to provide financial education due to the current financial challenges, especially among youth.

He noted that despite efforts by the Ministry to spread this education nationwide, they found the youth forum during the Torch activities as a suitable platform for this crucial education.

Among the participants, Rajabu Kulandera expressed gratitude to the government for continuing to provide such vital education for their development and that of the nation at large.

“The education has opened our eyes. Among other things, the issue of loans has been a burning topic for us, but after this education, we understand the importance of reading contracts before borrowing to determine whether a loan is detrimental or beneficial,” said Kulandera.

He appealed to the government, through the Ministry of Finance, to continue providing essential education to low-income citizens, especially in rural areas, to protect them from suffering due to lack of knowledge about formal financial systems and their rights, which often leads them to take on hard-to-meet loans with stringent terms.