Tanzania, Nov. 29 -- Dar es Salaam. The Bank of Tanzania (BoT) has moved to compel all lenders to be licensed as part of efforts to create a level playing field and protect the rights of borrowers and lenders alike.

In its circular issued last week, BoT warned unlicensed individuals, institutions and companies lending money, saying they risked being fined not less than Sh20 million or spend not less than two years in jail or both.

"Lending by these unlicensed companies or individuals is against Section 16 (1) of the Microfinance Act 2018," the circular says.

In order to avoid being defrauded or suffering any other consequence of obtaining informal credit and to maintain stability and public trust in the banking system, BoT urged the pu...