BoT to monitor TIPS services amid cost concerns

BoT to monitor TIPS services amid cost concerns

Dar es Salaam. The Bank of Tanzania (BoT) has announced plans to begin monitoring service providers on the Tanzania Instant Payment System (TIPS), which has not reduced costs as stipulated in a circular issued earlier this year.

A computer analyst programmer in the system development and support department at the BoT, Mr Octalion Urassa, told The Citizen on Monday during the ongoing 48th Dar es Salaam International Trade Fair (DITF) that so far all 39 commercial banks and six mobile companies, including Vodacom, Halopeasa, TTCL Azampesa, Tigo, and Airtel, have joined TIPs.

He, however, did not reveal what would happen to those financial institutions that were found to be going against the BoT’s directives.

“Initially, we started with a pilot project with a few commercial banks and a mobile company, but now all the service providers have been integrated into the system, which will make transactions more transparent,” he said.

This comes after BoT issued a circular on fees for the Tanzania Interbank Settlement System (TISS) under the provisions of Section 56(3) of the National Payment Systems Act, 2015, and Section 6 of the Bank of Tanzania Act, 2006, notifying the providers of the revised TISS fees.

“The review, which included consultations with stakeholders, is part of ongoing initiatives aimed at reducing the costs associated with electronic payments, promoting digital payment adoption, and decreasing cash usage,” he said.

The new TISS fee schedule took effect on May 1st, 2024. According to the circular, BoT observed that high charges are imposed on customers for transferring funds between banks through retail platforms and channels, thereby increasing the financial burden on consumers.

Regarding TIPs, Urassa explained that previously, banks used to engage in multiple bilateral agreements with other banks and mobile companies, resulting in a cumbersome network of agreements.

“After integration into the TIPs system through a unified connection, they can now transact without the need for multiple bilateral agreements,” he said.

Furthermore, he noted that the public can now make payments for goods and services from any service provider without being restricted to a specific network, unlike before.

“We issued a circular addressing the shortcomings in cost management by service providers after their integration into TIPS. This initiative began in January this year and is expected to be fully implemented by May,” Mr Urassa said.

Analysts say the initiative was good because it will facilitate a transition to a paperless system and eliminate cash-based transfers, which are often used in terrorism and money laundering.

“Storing money in the system is crucial because it allows for traceability of its origin, prevents tax evasion and reduces corruption since the system provides transparency,” said an Associate Professor of Development Economics at the University of Dar es Salaam, Abel Kinyondo.

However, he noted that if the system is not automated and therefore not affordable and efficient, then there is a problem with the system that needs to be addressed.

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Africa: Rwanda Gets a Grip Of Marburg, But Mpox ‘Not Yet Under Control’
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Africa: Rwanda Gets a Grip Of Marburg, But Mpox ‘Not Yet Under Control’

Africa: Rwanda Gets a Grip Of Marburg, But Mpox ‘Not Yet Under Control’

Monrovia — The Rwanda Minister of State responsible for Health, Dr. Yvan Butera, cautioned that while the country is beginning to see positive signals in its fight against the Marburg virus, the outbreak is “not yet over”. He, however, expressed hope that  “we are headed in that direction”. The minister said the epidemiology trend, since the disease was first discovered in the country more than a month ago, is moving towards fewer cases.

Dr. Butera, who was giving updates during an online briefing yesterday, said in the past two weeks, only two deaths were recorded while 14 people recovered from the disease. He said Rwanda was expanding its testing capacity with 16,000 people already inoculated against the disease.

The priority right now, Butera said, is “rapid testing and detection”.

Marburg is a highly virulent disease transmitted through human-to-human contact or contact with an infected animal. The fatality rate of cases, which has varied over the period, is more than 50%, according to the World Health Organization.  WHO said the highest number of new confirmed cases in Rwanda were reported in the first two weeks of the outbreak. There’s been a “sharp decline” in the last few weeks, with the country now tackling over 60 cases.

At Thursday’s briefing, a senior official of the Africa Centers for Disease Control, Dr. Ngashi Ngongo, said mpox – the other infectious disease outbreak that countries in the region are fighting – was been reported in 19 countries, with Mauritius being the latest country to confirm a case. He said although no new cases have been recorded in recent weeks in several countries where outbreaks occurred previously –  including Cameroon, South Africa, Guinea, and Gabon – Uganda confirmed its first Mpox death. This, he said, is one of two fatalities reported outside Central Africa.

Dr. Ngashi revealed that there was an increase in cases in Liberia and Uganda. He said mpox cases were still on an upward trend.

“The situation is not yet under control.”

Source: allafrica.com

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