Microfinance policy, Law is timely
The newspaper article reports about microfinance policy in Tanzania. The government’s decision to launch the microfinance policy, 2017 has come at the right time. The policy, together with the planned microfinance law, will give the country the required legal framework to effectively regulate the subsector. According to a recent report by the Business and Assets Formalization Programme millions of Tanzanians are still sitting on $29.3 billion (about Tsh65 trillion) worth of dead capital. The policy is also coming at a time when levels of non-performing loans (NPLs) have increased to reach about 10% of total gross loans against the acceptable threshold rate of 5%.