Page 19 - Tanzania-Enabling-Mobile-Money-Policies
P. 19
oUtLooK and next StePS
box 2
coordinaTed regulaTion
The BOT and the Tanzanian Communication Regulatory Authority (TCRA) collaborated successfully in the early days of mobile
money, and the BOT still recognises the need for coordination between the regulators and within the regulatory bodies themselves.
For example, since MNOs traditionally fall under the purview of the TCRA, the draft regulations for mobile financial services make
note of the licensing requirements for mobile money as a value-added service. The BoT has also signed a Memorandum of Under-
standing to support coordination between the two regulators.
It remains the prerogative of BOT to coordinate their efforts internally and with other relevant regulators and policymakers. For
instance, mounting pressure from the banking sector looking to find its place as a mobile money provider has created an imperative for
coordination between the NPSD and the Banking Supervision Department, though in practice this has been a challenge. BOT’s Financial
Inclusion Working Group, founded in 2012, has been a step towards this type of internal coordination. In 2013, the BOT worked diligently
to prevent internal disharmony from potentially arising from the Banking Supervision department’s recently issued Guidelines on Agent
Banking for Banking Institutions (2013) and the rules governing agents under the draft mobile banking regulations.
29
The 0.15% excise duty on all mobile money transfers (along with all other money transfers) proposed in July 2013 threatens to curb
30
uptake and usage of mobile money in a relatively new sector. Coordination with the Revenue Authority may be necessary to ensure
policy objectives are aligned.
The new National Financial Inclusion Framework reflects this commitment to coordination. A new coordination structure has been
created for three levels of committees: the National Council, the National Steering Committee, and the Financial Inclusion National
Technical Committee. The Bank of Tanzania will serve as the secretariat to all three committees. 31
29. Bank of tanzania (2013), “Guidelines on a gent Banking for Banking institutions”, http://www.bot-tz.org/BankingSupervision/GUideLineS%20on%20a Gent%20BanKinG%20For%20BanKinG%20inStitUtionS%202013.pdf
30. tanzania revenue authority (2013), “introduction of the excise duty on money transfer”, http://www.tra.go.tz/index.php/excise-duty/94-excise-duty/229-introduction-of-the-excise-duty-on-money-transfer. on the taxation
of mobile money services, the rationale behind it and its potential effect, see also the economist, “Charging the mobile. east african governments are targeting telecoms firms”, http://www.economist.com/news/finance-
and-economics/21579870-east-african-governments-are-targeting-telecoms-firms-charging-mobile, 22 July 2013; and Simone di Castri, “GSma position on the taxation of mobile money transactions in Kenya”, http://www.
gsma.com/mobilefordevelopment/gsma-position-on-the-taxation-of-mobile-money-transactions-in-kenya, 19 october 2012, and “on the proposed 10% tax on mobile money transactions in Uganda”, http://www.gsma.
com/mobilefordevelopment/on-the-proposed-10-tax-on-mobile-money-transactions-in-uganda, 19 July 2013.
31. See Chapter 7 of the nFiF, available at: http://www.bot-tz.org/nFiF/national%20Financial%20inclusion%20Framework.pdf
13
box 2
coordinaTed regulaTion
The BOT and the Tanzanian Communication Regulatory Authority (TCRA) collaborated successfully in the early days of mobile
money, and the BOT still recognises the need for coordination between the regulators and within the regulatory bodies themselves.
For example, since MNOs traditionally fall under the purview of the TCRA, the draft regulations for mobile financial services make
note of the licensing requirements for mobile money as a value-added service. The BoT has also signed a Memorandum of Under-
standing to support coordination between the two regulators.
It remains the prerogative of BOT to coordinate their efforts internally and with other relevant regulators and policymakers. For
instance, mounting pressure from the banking sector looking to find its place as a mobile money provider has created an imperative for
coordination between the NPSD and the Banking Supervision Department, though in practice this has been a challenge. BOT’s Financial
Inclusion Working Group, founded in 2012, has been a step towards this type of internal coordination. In 2013, the BOT worked diligently
to prevent internal disharmony from potentially arising from the Banking Supervision department’s recently issued Guidelines on Agent
Banking for Banking Institutions (2013) and the rules governing agents under the draft mobile banking regulations.
29
The 0.15% excise duty on all mobile money transfers (along with all other money transfers) proposed in July 2013 threatens to curb
30
uptake and usage of mobile money in a relatively new sector. Coordination with the Revenue Authority may be necessary to ensure
policy objectives are aligned.
The new National Financial Inclusion Framework reflects this commitment to coordination. A new coordination structure has been
created for three levels of committees: the National Council, the National Steering Committee, and the Financial Inclusion National
Technical Committee. The Bank of Tanzania will serve as the secretariat to all three committees. 31
29. Bank of tanzania (2013), “Guidelines on a gent Banking for Banking institutions”, http://www.bot-tz.org/BankingSupervision/GUideLineS%20on%20a Gent%20BanKinG%20For%20BanKinG%20inStitUtionS%202013.pdf
30. tanzania revenue authority (2013), “introduction of the excise duty on money transfer”, http://www.tra.go.tz/index.php/excise-duty/94-excise-duty/229-introduction-of-the-excise-duty-on-money-transfer. on the taxation
of mobile money services, the rationale behind it and its potential effect, see also the economist, “Charging the mobile. east african governments are targeting telecoms firms”, http://www.economist.com/news/finance-
and-economics/21579870-east-african-governments-are-targeting-telecoms-firms-charging-mobile, 22 July 2013; and Simone di Castri, “GSma position on the taxation of mobile money transactions in Kenya”, http://www.
gsma.com/mobilefordevelopment/gsma-position-on-the-taxation-of-mobile-money-transactions-in-kenya, 19 october 2012, and “on the proposed 10% tax on mobile money transactions in Uganda”, http://www.gsma.
com/mobilefordevelopment/on-the-proposed-10-tax-on-mobile-money-transactions-in-uganda, 19 July 2013.
31. See Chapter 7 of the nFiF, available at: http://www.bot-tz.org/nFiF/national%20Financial%20inclusion%20Framework.pdf
13
