Name
Global FinTech Guide
Country _ Name
United Rep of Tanzania
SectionTitle
Loan services/factoring/loan broking/finetrading
Body
FinTechs belonging to this category act as a loan creditor (even short and very short-term loans), are broking loans or receivables or conduct factoring of loans, which were given to private or business customers. In this business area you also find “peer-to-peer” (P2P) services, in which FinTechs enable a multitude of users to give loans (and brokered by the FinTech-platform) to other users or companies.

Finetrading is hereby a financial service of FinTechs, where they buy due receivables and grant the debtor an extension of payment time. 

As an ancillary service some FinTechs offer alternative credit assessment services to check the solvency of a borrower.

Introduction

Attitude of the country towards loan-giving-, factoring-, brokerage-, finetrading- and ancillary services

Tanzania has adopted a cautiously enabling yet firmly regulated approach to modern financial services—including loan-giving, factoring, brokerage, trade financing, and ancillary fintech services. Loan services provided by FinTechs are used as an alternative to financing models by traditional credit or financial institutions in Tanzania. There are instances where traditional credit or financial institutions are not interested in providing the required loan. Then, a person can get a loan through mobile. These alternatives recently became more and more attractive to a broad audience and this trend is expected to continue over the next couple of years.


Legal affairs

Obligations and requirements to provide loan-giving-, factoring-, brokerage-, finetrading, and ancillary services described above

 

SERVICE

  

REGULATOR

  

KEY LICENSE/REGULATION
Loan-Giving (Digital)

 Bank of Tanzania

 Tier 2 Microfinance License (BoT Guidelines 2022, 2024)
Factoring

 Bank of Tanzania

 Tier 2 Lending License
Brokerage

 Capital Markets and Securities Authority

 Broker/Dealer License (CMSA Act & Regulations)
Finetrading

 Bank of Tanzania or Capital Markets and Securities Authority

 Tier 2 Lending or CMSA license
Ancillary Services

 Bank of Tanzania, Capital Markets and Securities Authority, Tanzania Communications Regulatory Authority

 FinTech Sandbox & Data Protection Laws


Additional comments regarding the legal situation for loan-giving-, factoring-, brokerage, finetrading-, and ancillary services or what FinTech’s must be aware of in this business area
The regulatory environment is strict, structured, and actively enforced. All providers of lending and financing services must be licensed under the Microfinance Act or relevant BoT frameworks, while brokerage and investment advisory services require CMSA approval. Innovative or tech-driven models must enter the Bank of Tanzania’s FinTech Sandbox before commercial rollout. Compliance with the Personal Data Protection Act, including obtaining consent and ensuring local data storage, is mandatory. FinTechs must also adhere to AML/CFT laws, implement proper KYC procedures, and avoid aggressive lending practices that violate BoT’s consumer protection guidelines. Cross-border payments and foreign currency lending are tightly regulated, requiring prior approvals. Unlicensed aggregators or apps are also subject to enforcement, and non-compliant platforms risk blacklisting, license revocation, and reputational damage.


Economic conditions

Market size for loan-giving-, factoring-, brokerage-, finetrading- and ancillary services and biggest companies in this business area

Market Size & Growth
  • Alternative Lending (Crowdlending, Digital Loans): In 2024, Tanzania’s alternative lending market was valued at approximately USD 417.6 million. Digital credit transactions surged by 91.5% in 2024, reaching TZS 4.22 trillion, with nearly 269 million loans processed. By end 2023 there were 95.9 million digital loan accounts, up from 32 million in 2022; value of credit jumped 370% to TZS 126 billion.
  • Digital Lending Platforms: The digital lending platform market was estimated at USD 25.2 million in 2023, with forecasts indicating a 20.2% annual growth through 2032
  • Traditional Financial Services (Brokerage, Factoring, Trade Finance): CRDB reported TZS 8.5 trillion in loans on TZS 13 trillion in assets; NMB held TZS 10.2 trillion in assets per 2022 data.
Leading Players by Segment

  • Digital Lending: Tala, Branch, M-Pawa (CRDB/Tigo), Timiza (Tigo/Telkom), and Mungu Credit dominate the sector.
  • Digital Lending Platforms: Notable names include M-KOPA, Tala, Branch, Palmcredit, and local bank-integrated platforms.
  • Traditional Banks & Microfinance: CRDB Bank Plc (TZS 13 trillion assets) NMB Bank Plc (TZS 10.2 trillion assets), Yetu Microfinance Bank Plc, a major listed microfinance institution.
  • Ancillary and FinTech: Selcom Paytech (POS, SIM banking), Maxcom Africa (MVISA, bill payment), and emerging apps like ClickPesa (SME trade financing on blockchain) have been instrumental in bridging gaps.

Additional comments regarding the economic situation for loan-giving-, factoring-, brokerage-, finetrading- and ancillary services or what FinTech’s must be aware of in this business area

Since Tanzania is a developing country, SME is rapidly growing in the market. There is a strong demand for alternative financing solutions such as FinTech loans which can quickly solve their financial problems rather than bank loans.

Thus, it is wise for established banks and financial institutions to see FinTechs not only as competitors but also as essential partners to meet the increasing expectations of their customers and survive the competition.

Authors

Close

Choose country