Page 155 - The Digital Financial Services (DFS) Ecosystem

ITU-T Focus Group Digital Financial Services
Ecosystem

Challenges with enrollment or use of the Not specified
program by women:
% of the enrolled who are women: Not specified

Challenges with enrollment or use of the Not specified
program by other populations:

Cost/Person: 9,504 – 10,330 Tanzanian shillings (US$5.96 – US$6.48) based on
237.6 billion Tanzanian shillings (US$149 million) for issuing identity cards to
between 23 million and 25 million people. 25
Challenges with Implementation or Program: Cost and Human Capacity – High costs and a lack assigned personnel to support
the program slowed implementation at the beginning and caused the government
to temporarily suspend the issuance of national identity cards. 26,27

Process for responding to implementation Not specified
challenges:
FUNCTIONAL USES OF PROGRAM

Financial Services
• KYC: The Managing Director of CRDB, a prominent bank in Tanzania, said that the new national ID would lower the cost of
registering new customers and the cost of lending because the ID offers stronger guarantees of customers’ identity and infor-
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mation. Where before bank officials had to conduct home visits to verify a customer’s address, now the ID can reliably provide
that information. The Director cited that lower costs would be passed on to customers. A national ID has also been cited as
necessary to address facilitating easier identification for would-be borrowers of housing loans. The national ID system, in con-
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junction with the credit bureau, is said to be expected to significantly raise credit provision. 30
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• Social Transfers: The national ID will be used to enable agencies that issue social pension funds to identify beneficiaries. The
Deputy Minister of Home Affairs said that the government will also use the national ID to “establish efficient and accountable
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ways to implement social relief projects.” The central database also provides a foundation for supporting other citizen-centric
services. 33
Agricultural Services
The Managing Director of CRDB Bank said that the new national ID would lower the cost of registering new customers and the cost
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of lending. He cited that lower costs would lead more accessible agribusiness loans for rural populations.
Election
• Voter registration and monitoring: National IDs can be used to register to vote. Biometric information associated with the IDs
will be used to de-duplicate voter databases and ensure only eligible voters participate in elections, preventing voter fraud. 35,36
Surveillance and Security – Law enforcement and Passport
• Law enforcement: It is believed that the electronic ID cards will be useful to combat organized crime and illegal trade given that
law enforcement, immigration, revenue, and other officials will have access to the citizen registry, thus enabling coordination
and information sharing across agencies.
• Passport: The national ID doubles as a passport for travel between East African Community member countries. 37
Other
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The identification database is the basis for development of a civil servants information system. By running government payrolls
and pension payments with the help of a national ID system and through systems that require biometric verification of identity
when making and collecting payments, the Tanzanian government can weed out ghost workers from the civil system and save an
estimate US $6 million. 39

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1 Makoye, 2013, ID World – ID Community Publications, 2015, Makoye, 2013, African Health Observatory, World Health
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Organization Africa, 2015, Ibid., Ibid., Ibid., Great Lakes Voice, 2015, Mugwe, 2013, Ibid., African Health Observatory,
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6
9
5
11
World Health Organization Africa, 2015, Id World – ID Community Publications, 2015, African Health Observatory, World
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15
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Health Organization Africa, 2015, Id World – ID Community Publications, 2015, Nachilongo, 2015, Issa, et al., 2015, Id
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World – ID Community Publications, 2015, Makoye, 2013, Great Lakes Voice, 2015, Ibid., Id World – ID Community Publi-
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26
27
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cations, 2015, Ibid., Makoye, K2013, Nachilongo, 2015, Mugwe, 2013, Id World – ID Community Publications, 2015,
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Nachilongo, 2015, Mugwe, 2013, Kironde, et. Al. 2003, CGAP and McKinsey, 2015, Robertson, et al., 2012, Id World – ID
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36
Community Publications, 2015, Ibid., Magomba, 2014, Ibid., Makoye, 2013, President of the Republic of Uganda, 2015,
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38 African Health Observatory, World Health Organization Africa, 2015, Zelazny, 2012.
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