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Tuesday, 10 September 2019

CLYDE & CO UPDATER - THE MICROFINANCE (ROLE OF THE MINISTER) REGULATIONS 2019

Following our updater on the Microfinance Act 2018 (the Act), this month's legal briefing focuses on the Microfinance (Role of the Minister) Regulations, Government Notice No. 575 of 2019 (the Regulations). The Regulations have been made under section 15(4) of the Act and were made public on 2 August 2019. The Regulations will come into operation via a commencement notice that will be published in the Gazette by the Minister of Finance (the Minister).


The Regulations will give the Minister power to enhance, ensure and promote a sustainable microfinance business environment and implement microfinance policies, transparency and accountability. When the Regulations come into operation, they will mainly affect Microfinance Service Providers (MFIs), promoters and stakeholders.
Key definitions in the Regulations

Focal Person refers to a person responsible for coordinating all matters relating to microfinance business within his area of designation. Among other things, the Focal Person will be responsible for developing and managing the microfinance database in his locality; promoting microfinance business in the country; monitoring and evaluating the progress of microfinance business; conducting registration of, and issuing permits to, Promoters; and registering and deregistering Promoters.

Forum refers to the Microfinance Stakeholders Forum whose function is to deliberate on issues of common interest for the purpose of coordination and promotion of the microfinance subsector. The Forum will be composed of representatives from the Ministry for Finance, the Bank of Tanzania (BoT), delegated authority, MFIs, microfinance industry associations, business development service providers, development partners, Promoters and relevant Stakeholders.

Promoter is an individual or an entity registered under the Regulations whose function is to promote microfinance business.

Stakeholder is an individual or entity that is directly or indirectly engaged in activities relating to microfinance business and includes MFIs, consumers, Promoters and government institutions.


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