3RD AFI GLOBAL POLICY FORUM

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A BRIEF TANZANIA'S EXPERIENCE IN FINANCIAL
EDUCATION

• 3RD AFI GLOBAL POLICY FORUM
• 29 SEPTEMBER 2011
• Flora Lugangira Rutabanzibwa
• Bank of Tanzania

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RATIONALE -2006/9 Financial Access Strands
very low access-One of key dd-side barriers
high financial illiteracy (20 rural)
Source FinScope 2006 and 2009
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DEVELOPMENT PROCESS

• Flag areas/issues
• Champion -BoT continued to highlight problem
  in national forums ?FE emerged as a
  critical national issue
• -Rural Micro Finance Technical Team of the
  Financial Sector Reform Programme was tasked
  to spearhead national response to systemic
  illiteracy
• Coordination T/team was a PPP under Bank of
  Tanzania co-opted Ministry of Educ.
• New Concept -Technical Support (consultant,
  international peer review, exposure
  visits facilitate team in undertaking a FE
  diagnostic study
• -Interest groups meetings for awareness
  creation consensus building
• Study Period gt a year (approval June 2011)
• Study Results FE Framework under BoT
  recommendation for a
  Financial Capability baseline survey and consumer
  protection framework

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NATIONAL FE FRAMEWORK

• Part of the broad approach of Consumer Protection
  (3 pillars)
• Aim
• Educate stakeholders on importance of FE
  potential roles
• Optimize resources through initiative
  coordination partnership
• Guide stakeholders
• Establish mechanism to measure national progress
• Components
• Consumer strategy to enhance financial capability
  through interest groups for each market segment
• Coordination Mechanism under the Bank (Policy
  Team (PPP) Secretariat Technical Team(PPP)
  working instruments
• ME Framework

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Challenges Key Question Areas

• At Stage of Setting up a Secretariat
• Severe shortage of skills in FE how to balance
  the urgent need to get things done through use of
  external technical assistance building local
  skills
• How best to handle FE with the existence of a
  financial consumer protection framework should
  the 2 issues be handled by different entities?
• Which market segment is of high priority to start
  with?

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• END - THANK YOU!