The central Bank of Tanzania in collaboration with Financial sector deepening trust (FSDT), have launched a national financial education framework to increase financial knowledge and consumer protection challenges.
The governor of the Central Bank explained that the programme was launched for the sole purpose of improving the financial acumen of people.
The National Financial Inclusion Framework (NFIF) 2016 – 2020 comprises strategies that aim to tackle supply side, demand side and structural obstacles in financial inclusion.
In a financial and Consumer Protection Conference Governor Ndulu presented a paper where among the many things he addressed, the issue of financial inclusion was highly emphasized.
He said that developments in the financial market created challenges for users particularly the poor and less educated.
The poor who are making up 28.2% of the households, were more vulnerable to exclusion due low unstable incomes, low confidence and self – exclusion, said Prof.Ndulu.
“Financial services providers and regulators have major roles to play in complementing the efforts of improving financial capabilities of individuals by addressing information asymmetry with the users,” he said.
Prof.Ndulu advocated for public education to be provided to the users, the education should go together with the new a sophisticated products that are developed. The education provide should cover on the issues of the features of the services, how to operate them and also the cost of the products.
He also said“The financial capacity baseline study have guided preparation of the framework and has informed its components including consumer financial education strategy, coordination and implementation structures as well as monitoring and evaluation framework.”
He further explained that the framework will target the youth by strengthening the base of financial literacy by embedding financial education in school curricula and via a special programme that will target dropouts.
FSDT Executive Director Sosthenes Kewe stressed that it was important to educate the public on financial literacy.