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The Minister for Finance, Hon. Ambassador Khamis Mussa Omar (MP), presenting to Parliament the Movable Assets Secured Lending Bill, 2026, which seeks to establish an effective framework for managing loans provided against movable assets as collateral. |
DODOMA - August 31, 2026: Minister for Finance, Hon. Ambassador Khamis Mussa Omar (MP), has tabled the Movable Assets Secured Lending Bill, 2026 in Parliament, seeking to establish a comprehensive framework for the management of loans secured by movable assets.
Presenting the Bill in Parliament in Dodoma, Hon. Ambassador Omar said the proposed legislation is aimed at increasing the use of banking services in Tanzania from 22 percent in 2023 to 50 percent by 2030.
He said the Bill also seeks to increase private sector credit as a proportion of Gross Domestic Product (GDP) from 22.5 percent in 2024 to 50 percent by 2030, while supporting job creation and increasing the contribution of the financial sector to 20 percent by 2030, from 17.1 percent in 2024.
According to the Minister, the proposed legislation is important in expanding access to credit for individuals and businesses by allowing them to use movable assets as collateral, rather than relying predominantly on immovable assets such as land and buildings.
ADDRESSING CHALLENGES IN MOVABLE ASSET COLLATERAL
Hon. Ambassador Omar said one of the key challenges the Bill seeks to address is the absence of a unified registration system for movable assets that can be used as collateral.
The lack of such a system has created a situation where the same asset can potentially be used as collateral for multiple loans without other lenders being aware of existing claims over the asset. This could contribute to an increase in non-performing loans within the financial sector.
Other challenges include the absence of a coordinated system for managing movable assets used as collateral, as well as inadequate procedures for enforcing the rights of borrowers and lenders when such assets are sold.
