BoT has licenced 10 new bureaus de change in 3 Months

Dar es Salaam. The Bank of Tanzania (BoT) has breathed new life into the bureau de change industry, granting licenses to 10 new companies since relaxing regulations in October.

This move promises more convenient foreign exchange services and potentially increased economic activity.

The BoT’s new Foreign Exchange (Bureau de Change) Regulations, introduced in October 2023, replaced the stricter 2019 regulations.

These new regulations introduced a tiered licensing system with three classes: A, B, and C.

Governor Emmanuel Tutuba told The Citizen that companies meeting the new criteria have been swiftly approved. “Just last week and Monday, I signed licenses for two new bureaus,” he revealed.

He noted that while some companies met most requirements, they received a six-month provisional license to address minor shortcomings. “They can obtain the full license after fulfilling all conditions,” he explained.

Class A can be either Foreign or locally owned, with branches nationwide. Minimum capital: Sh1 billion (foreign) or Sh500 million (local). Services: spot forex buying/selling, money remittances, bank/insurance/mobile operator agency services, and other BoT-approved activities.

Class B is locally owned, single outlet with a minimum capital of Sh200 million providing services such as spot forex buying/selling, bank/insurance/mobile operator agency services, and other BoT-approved activities.

Whereas, Class C is exclusive to 3-star hotels with no minimum capital required, offering limited forex buying/selling.

Previously, only companies with Sh1 billion capital could operate, limiting options for smaller players. This liberalization could boost competition and potentially lower forex exchange rates.

The BoT’s move is a welcome step towards a more vibrant and accessible foreign exchange market.

With 10 new licenses issued in just three months, it’s clear that businesses are eager to tap into this revitalized sector.