THE BANK Of Tanzania (Bot) Has Issued A Stern Warning To Individuals And Groups Running Village Community Banks (VICOBA) Without Official Registration, Stressing That The Practice Is Illegal. The Central Bank Is Urging The Public To Report Any Unregistered Financial Activities To Authorities To Help Strengthen Oversight In The Microfinance Sector.
Speaking During A Media Seminar Held In Dodoma On November 20, 2025, Bot’s Manager For Microfinance Supervision, Dickson Gama, Emphasized That Operating Unregistered VICOBA Constitutes A Criminal Offense. He Noted That Offenders Face Penalties Ranging From Tsh 1 Million To Tsh 10 Million, Imprisonment Of Two To Five Years, Or Both.
Gama Revealed That As Of September This Year, A Total Of 70,900 Groups Have Been Registered Through The Wezesha Portal Under OR-TAMISEMI, In Line With The Microfinance Act Of 2018, Which Aims To Enhance Transparency And Accountability In The Microfinance Sector. He Urged All Remaining Informal Groups To Formalize Their Operations To Ensure Compliance With National Financial Regulations.
He Further Explained That Formal Registration Helps Safeguard Members’ Funds, Promotes Transparency, And Strengthens Trust Within VICOBA Groups. According To Gama, Microfinance Services Play A Crucial Role In Empowering Citizens, Particularly Marginalized Groups, By Increasing Income Opportunities And Reducing Poverty Levels.
The Seminar, Organized By Bot, Brought Together Journalists From Zanzibar, Dodoma, Dar Es Salaam, Pwani, And Morogoro To Deepen Their Understanding Of Financial Systems And The Governance Of Microfinance Operations Across The Country.
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