Advancing inclusive finance for the displaced through MSC’s diagnostic study on financial inclusion of climate-induced IDPs in Tanzania

• Sep 8, 2025
• 2 min

As climate change continues to intensify across Tanzania, growing numbers of people are displaced from their homes. These internally displaced persons (IDPs), often uprooted by floods, droughts, or other climate-related events, face heightened economic vulnerability and limited access to formal financial services. In response, the Bank of Tanzania recognized the urgent need to include displaced populations within the country’s financial inclusion agenda. To support this goal, a comprehensive diagnostic study was initiated to better understand the financial needs and barriers faced by climate-induced IDPs and to develop a strategic roadmap for their inclusion.

MSC led this diagnostic study. Drawing from both demand and supply side perspectives, we assessed the financial behaviors, needs, and constraints of climate-displaced populations, while also examining the capacity and readiness of financial institutions to serve them. The study explored regulatory gaps, institutional coordination challenges, and opportunities to build more inclusive financial products and delivery channels. The generated insights informed the development of a practical and forward-looking roadmap to support the integration of IDPs into the National Financial Inclusion Framework (NFIF) and broader financial sector policies.

The project marked an important step in ensuring that Tanzania’s financial inclusion strategy is responsive to the evolving risks of climate change and displacement. By equipping policymakers with a nuanced understanding of the financial exclusion experienced by IDPs, the study has catalyzed greater alignment among financial sector stakeholders and strengthened the foundation for inclusive, resilient policy action. The roadmap now serves as a guide for incorporating displaced populations into national financial systems and enhancing their economic participation and protection.

This project was commissioned by the Alliance for Financial Inclusion (AFI).