(Ecofin Agency) - The Central Bank of Tanzania set a deadline of three months for commercial banks and finance institutions operating in the country to set up local data centers. The Bank said the institutions that will not comply with the measure will face a hefty fine of TSh5 billion ($2.18 million).

“The bank of Tanzania has noted with serious concern that most of the banks and financial institutions have not provided a true position on compliance with the requirements to put in place a primary or secondary data center in Tanzania,” Bernard Kibesse, deputy central bank governor for financial stability said.

Since 2014, the Central Bank has issued three circulars, calling banks to set up their data centers in Tanzania rather than setting them up in other countries. Currently Tanzania has 40 commercial banks, 11 community banks and 5 microfinance institutions.

Chamberline Moko