situation analysis
Situational Analysis and Stocktaking Report
Executive Summary
A. Introduction
This report concludes the first phase of the National Payment System (NPS) modernisation project --situational stocktaking—- which took about a year and involved banks, users, regulators, providers and most parties with a stake in the country’s payment systems. It was carried out through literature reviews, research, study tours, interviews, surveys and workshops. The findings of this phase will form the base for the work to be undertaken in subsequent phases of this project.
The report focuses on the major factors influencing payment systems in the country. It includes:
1. An introduction of the problems associated with NPS, purpose of the project, factors affecting NPS, methodologies used and the report’s contents.
2. Background of the country’s socio-political culture, economy and an outline of its vision;
3. The infrastructure situation (i.e. power, telecommunication, transport, mail, courier) and the state of automation within and between bank branches and their customers;
4. The legal structures that affect payments e.g. legislation overlaps, the law not fully covering or accommodating modern payment systems, etc.
5. The key institutional structures in national payments and requisite human resource capacity;
6. The existing payment instruments, Inter-bank Clearance and Settlement systems.
7. The risks associated with Payments in the country, measures put to mitigate the risks and cost recovery methods for payment services; and,
8. A conclusion on the country’s national payment system needs, vision and some preliminary suggestions on the way forward.
A. The National perspectives and Background
Tanzania came into existence after the union of two countries (Tanganyika and Zanzibar). It is a vast country with over 945,000 square kilometres and a population of about 30 million. The travelling distance from a town in the North-West (Bukoba) to one in the
Executive Summary
A. Introduction
This report concludes the first phase of the National Payment System (NPS) modernisation project --situational stocktaking—- which took about a year and involved banks, users, regulators, providers and most parties with a stake in the country’s payment systems. It was carried out through literature reviews, research, study tours, interviews, surveys and workshops. The findings of this phase will form the base for the work to be undertaken in subsequent phases of this project.
The report focuses on the major factors influencing payment systems in the country. It includes:
1. An introduction of the problems associated with NPS, purpose of the project, factors affecting NPS, methodologies used and the report’s contents.
2. Background of the country’s socio-political culture, economy and an outline of its vision;
3. The infrastructure situation (i.e. power, telecommunication, transport, mail, courier) and the state of automation within and between bank branches and their customers;
4. The legal structures that affect payments e.g. legislation overlaps, the law not fully covering or accommodating modern payment systems, etc.
5. The key institutional structures in national payments and requisite human resource capacity;
6. The existing payment instruments, Inter-bank Clearance and Settlement systems.
7. The risks associated with Payments in the country, measures put to mitigate the risks and cost recovery methods for payment services; and,
8. A conclusion on the country’s national payment system needs, vision and some preliminary suggestions on the way forward.
A. The National perspectives and Background
Tanzania came into existence after the union of two countries (Tanganyika and Zanzibar). It is a vast country with over 945,000 square kilometres and a population of about 30 million. The travelling distance from a town in the North-West (Bukoba) to one in the