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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Tanzania Confirms Second Marburg Outbreak After WHO Chief Visit
Tanzania Foreign Investment News
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Tanzania Confirms Second Marburg Outbreak After WHO Chief Visit

Dar es Salaam — Tanzania’s President Samia Suluhu Hassan has declared an outbreak of Marburg virus, confirming a single case in the northwestern region of Kagera after a meeting with WHO director-general Tedros Adhanom Ghebreyesus.

The confirmation follows days of speculation about a possible outbreak in the region, after the WHO reported a number of deaths suspected to be linked to the highly infectious disease.

While Tanzania’s Ministry of Health declared last week that all suspected cases had tested negative for Marburg, the WHO called for additional testing at international reference laboratories.

“We never know when an outbreak might occur in a neighbouring nation. So we ensure infection prevention control assessments at every point of care as routine as a morning greeting at our workplaces.”Amelia Clemence, public health researcher

Subsequent laboratory tests conducted at Kagera’s Kabaile Mobile Laboratory and confirmed in Dar es Salaam identified one positive case, while 25 other suspected cases tested negative, the president told a press conference in Dodoma, in the east of the country today (Monday).

“The epicentre has now shifted to Biharamulo district of Kagera,” she told the press conference, distinguishing this outbreak from the previous one centred in Bukoba district.

Tedros said the WHO would release US$3 million from its emergencies contingency fund to support efforts to contain the outbreak.

Health authorities stepped up surveillance and deployed emergency response teams after the WHO raised the alarm about nine suspected cases in the region, including eight deaths.

The suspected cases displayed symptoms consistent with Marburg infection, including headache, high fever, diarrhoea, and haemorrhagic complications, according to the WHO’s alert to member countries on 14 January. The organisation noted a case fatality rate of 89 per cent among the suspected cases.

“We appreciate the swift attention accorded by the WHO,” Hassan said.

She said her administration immediately investigated the WHO’s alert.

“The government took several measures, including the investigation of suspected individuals and the deployment of emergency response teams,” she added.

Cross-border transmission

The emergence of this case in a region that experienced Tanzania’s first-ever Marburg outbreak in March 2023 has raised concerns about cross-border transmission, particularly following Rwanda’s recent outbreak that infected 66 people and killed 15 before being declared over in December 2024.

The situation is particularly critical given Kagera’s position as a transport hub connecting four East African nations.

Amelia Clemence, a public health researcher working in the region, says constant vigilance is required.

“We never know when an outbreak might occur in a neighbouring nation. So we ensure infection prevention control assessments at every point of care as routine as a morning greeting at our workplaces.”

The Kagera region’s ecosystem, home to fruit bats that serve as natural reservoirs for the Marburg virus, adds another layer of complexity to disease surveillance efforts.

The virus, closely related to Ebola, spreads through contact with bodily fluids and can cause severe haemorrhagic fever.

Transparency urged

Elizabeth Sanga, shadow minister of health for Tanzania’s ACT Wazalendo opposition party, says greater transparency would help guide public health measures.

“This could have helped to guide those who are traveling to the affected region to be more vigilant and prevent the risk of further spread,” she said.

WHO regional director for Africa Matshidiso Moeti says early notification of investigation outcomes is important.

“We stand ready to support the government in its efforts to investigate and ensure that measures are in place for an effective and rapid response,” she said, noting that existing national capacities built from previous health emergencies could be quickly mobilised.

The situation coincides with leadership changes in Tanzania’s Ministry of Health, with both the chief medical officer and permanent secretary being replaced.

This piece was produced by SciDev.Net’s Sub-Saharan Africa English desk.

Source: allafrica.com

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