Dar es Salaam. The newly introduced caps on fees for bank-to-bank transfers through the Tanzania Instant Payments System (TIPS) will strengthen liquidity in the banking industry and promote the transition towards a cashless economy, according to analysts.
The Bank of Tanzania (BoT) recently announced new fee limits for bank-to-bank transactions conducted through retail platforms and channels such as TIPS and the Tanzania Automated Clearing House (TACH). The news rates will come into effect tomorrow.
According to a circular signed by BoT deputy governor (financial stability and deepening) Sauda Msemo, transfer fees will not exceed Sh2,000 for transactions of up to Sh20 million.
Transfers ranging from Sh500,001 to Sh5 million will be subjected to charges ranging from zero to Sh1,500, with transfers ranging from Sh50,001 to Sh500,000 incurring charges of between zero and Sh1,000. Transfers of Sh1 to Sh50,000 will attract charges of from zero to Sh500.
“The Bank of Tanzania has observed that high charges are imposed on customers for transferring funds from one bank to another through retail platforms and channels, which increases the burden on consumers of these services,” the BoT statement said.
TIPS, operated by the BoT, facilitates real-time payments among various digital financial service providers (DFSPs), including banks and non-banking entities such as mobile money operators.
TACH, on the other hand, is a centralised automated system operated by the BoT for clearing cheques and electronic funds transfers (EFTs).
TIPS enables one to instantly make transfers and payments between bank accounts and mobile wallets around the clock.
The system is an upgrade of the Tanzania Interbank Settlement System (TISS), which charges a fee of up to Sh10,000 for each transfer regardless of the amount involved.
“The system allows for cheaper bank-to-bank transfers. It’s cost-effective and enhances customer convenience and trust by providing immediate confirmation and notification of payments. With TISS, customers had to wait for a number of minutes or even hours before transactions were completed,” banker and analyst Kelvin Mkwawa told The Citizen.
He noted that through TIPS, the central bank will be able to address liquidity management issues by maintaining a single connection as the system will support the BoT’s objective of retaining liquidity within the banking system through convenient and easy money transfers.
“With cost-effective and straightforward transactions being made possible, there will be no need to resort to alternative channels. Consequently, liquidity will be maintained within the banking system,” Mr Mkwawa said.
A seasoned economist, Prof Abel Kinyondo, said by reducing transfer costs, the central bank will encourage many more people to conduct banking transactions.
“Making banking transactions more affordable will also promote a cashless economy. Customers will be encouraged to use bank-to-bank transfers instead of carrying large sums of cash from one bank to another and risking being robbed and even harmed. The new system will also make it easier for the relevant authorities to trace suspicious transactions,” he said.
Prof Kinyondo added that promoting bank-to-bank transfers is beneficial for the country in terms of revenue collection, with the Tanzania Revenue Authority (TRA) being able to estimate tax more accurately.
According to the BoT, while mobile phones have continued to play a key role in bridging the infrastructural gap by providing a platform for the unbanked population to access financial services, TIPS provided a platform for facilitating instant and secure retail payments and transfers between digital financial service providers.
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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.
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“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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