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Tanzania’s Central Bank will no Longer Allow Unlicensed Digital Lenders to Operate

Tanzania’s Central Bank has banned the operation of unlicensed digital lenders in the country. The Bank requested that customers ascertain that a digital loan platform is licensed before patronizing them. While the bank didn’t provide any reason for its decision, it is widely believed the restrictions are an attempt to curb the predatory practices of these companies, which includes debt-shaming and harassment of defaulters as well as unreasonable high interest rates. This move, if enforced, will lead to the demise of 100 digital loan apps operating in the East African country.