Bank of Tanzania Launches Fintech Regulatory Sandbox to Drive Financial Innovation

Dar es Salaam, Tanzania – The Bank of Tanzania (BOT) has unveiled its Fintech Regulatory Sandbox, a strategic initiative aimed at fostering financial innovations through a controlled testing environment. The Sandbox, established under the BOT Fintech Regulatory Sandbox Regulations, 2024, will begin accepting applications in January 2025.

This innovative platform is designed to facilitate the testing of financial products and services that fall outside the scope of existing regulatory frameworks under the BOT's jurisdiction. The initiative underscores Tanzania's commitment to advancing financial technology and promoting inclusive, efficient financial services.

Applications for the Sandbox will be accepted quarterly via the Bank’s Fintech Regulatory Sandbox Application Portal (frsp.bot.go.tz). Evaluations will be conducted based on regulatory requirements, with applicants receiving feedback within 30 working days after the application period closes.

Speaking about the initiative, Sauda K. Msemo, Deputy Governor for Financial Stability and Deepening, emphasized its significance for the country’s financial ecosystem. “This initiative is designed to support banks, financial institutions, mobile money operators, electronic money issuers, and fintech companies, enabling them to innovate within a supportive regulatory environment,” she said.

The BOT statement highlighted the importance of the Sandbox in fostering innovation:

“The Bank of Tanzania promotes financial technologies and innovations for inclusive and efficient provision of financial services and products through creating enabling regulatory environment. The Fintech Regulatory Sandbox provides a controlled environment through a test-and-learn approach for products and services not yet fully covered by current regulations.”

The first application window for the Sandbox will open from January 2 to January 22, 2025, marking a significant milestone in Tanzania’s journey toward becoming a regional leader in financial technology.

For more details, visit the official portal at frsp.bot.go.tz.