THE government has allocated over 133bn/- to enhance the financial sector, focusing on strategies to help citizens move away from informal financial systems.

The funds will be utilised to conduct research within the financial sector, provide education on the use of formal financial services for small and medium-sized enterprises and increase adoption of technology in finance.

Prof. Adolf Mkenda, Minister for Education, Science and Technology, made the remarks recently in Mbeya while representing Minister for Finance and Planning Dr Mwigulu Nchemba at the opening of the national Financial Services Week celebrations.

He noted that the funds began to be utilised in the 2021/2022 financial year and are expected to be fully spent by 2025/2026 financial year.

“Additionally, the government is in the process of improving the new education curriculum which aims to integrate financial literacy and entrepreneurship for our youth, enabling them to become self-employed. Once this process is complete, we will inform the stakeholders,” he said.

Dr Charles Mwamwaja, representing the Ministry of Finance, stated that the government aims for 80 percent of Tanzanians to use formal financial services by 2026.

He explained that the Financial Services Week celebrations are designed to educate the public about various aspects of the financial sector, including the proper use of financial systems to boost the economy.

He said currently 46 percent of Tanzanians rely on informal financial services such as keeping money at home, hiding it in containers or burying it.

“All stakeholders present at these celebrations provide education on the use of formal financial services and this will be offered throughout the week,” he added.

Some participants expressed their intention to use the event to encourage citizens, particularly in rural areas, to embrace formal financial services.

He called on financial institutions across the nation to intensify their efforts and refine strategies aimed at educating various social groups, particularly students and rural citizens on the effective use of formal financial services.

He underscored the importance of disseminating knowledge about formal financial services to the public.

This year’s National Financial Services Week was the fourth national event and the first to be held in Mbeya Region.