WHERE ARE WE ON THE LEGAL, SUPERVISORY AND REGULATORY FRAMEWORK FOR ISLAMIC BANKING IN TANZANIA?

There has been sound evidence that a country with Islamic banking regulations is seriously posed to fast-move the growth of Islamic banking in the country. As a result, more countries are in consultations with renown organizations and entities such as World Bank and Malaysia International Islamic Finance Centre among others to assist on formulation of Islamic Banking Laws or revision of existing laws to embrace Islamic banking operations.

Tanzania is among the countries that realized the need to relook its existing banking laws in order to take necessary changes to provide required legal and supervisory framework for Islamic banks. Two years ago, Tanzania took initiative to request World Bank to advise the Bank of Tanzania on formulation of legal, supervisory and regulatory framework for Islamic banking. I had an opportunity to meet World Bank delegation given the tasks for consultations in May 2013.

Since then, there is no progress on what was advised by the World Bank Team. In November 2014, i learned that the World Bank Team tabled the proposed framework to BOT timely for consideration. When I had an opportunity to inquire when should stakeholders expect it to be discussed, there was no clear timeline as to when this framework shall be discussed by stakeholders before its adopted.

What is going on with BOT to seat with this important matter for months without any sign of progress? For how long Tanzania shall be a follower in East African Community rather than leader when it comes to matter of economic significance? Don't we aspire to be a regional hub for Islamic Finance if we could not attain been a financial center? Don't we desire to attract foreign investors in the financial sector to widen our financial services outreach and supplement our financial inclusion strategy? Don't we want to increase youth employment in the formal sector? Don't we want economic partnership with Middle East beyond the social and political relationship?

Lets us all push for answers to these questions.

Wabillahi Tawfiq.