Author: Giza Mdoe

The private sector is not responsive to the government’s stimulus package as banks report less than desired activities in borrowing. Even though huge fiscal and monetary measures have been taken by the Central Bank, still commercial banks are facing reduced demand on borrowing. This is evident in weekly turnovers for Interbank trading which is down 92 per cent, the lowest it has ever been over the last decade. Money market analysis for the month of May reported that the Interbank Money Market (IMM) suffered its lowest activities since 2010. You will recall that 2010 is just two years into the…

The African Development Bank Group has got a new member, Ireland, bringing its total number of international members to 27. Ireland’s membership goes along way to boosting the banks financial muscle and with it, the ability to fund development projects across the continent. Ireland officially joined the Group last month after a declaration of its membership was issued in late April, a little less than an year after the country submitted its application to join the Group mid last year. Following the declaration, Ireland’s top ranking government official the Minister for Finance Mr. Paschal Donohoe explained that its membership will…

Even as share values for US futures on crude oil prices hit rock bottom, spotting a worrisome negative figure (-4.0 USD) there are still several functions that claim the crush of oil prices in the US and around the World will have no effect on stock shares in Tanzania, the numbers are giving a different story. Lets start with the optimistic side. As US futures for oil price continue to free fall some are of the view that it will have no effect on Tanzania’s sole bourse, the Dar es Salaam Stock Exchange (DSE). Why? Well, simple, most African countries,…

Members of Parliament in Tanzania are urging the government to consider giving tax breaks to businesses in a bid to help them stay afloat. Alternatively, the government is encouraged, through the Central Bank, to scrap interest on loans so that borrowers do not fall into default. At the moment, despite the global slowdown, businesses are still operational but they are operating way below their year revenue projections. Already, at the start of the second quarter, the country is facing potentially huge loan defaults by both large corporations as well as small and medium sized companies. Big businesses are now turning…

Once upon a time in Kenya, tea and coffee were the big players, the rulers of the country’s agribusiness the top foreign exchange earners. However with time passing the crops contribution to annual earnings kept falling, because the farmers were simply not getting paid in time. The peasants’ payment was little and delayed. As a result, production and quality of the coffee and tea out remained poor and could not earn the country its potential income from the sector. Now the government has set aside USD15 million to revitalize the sector. The funding is from the World Bank which is…

The falling price of crude oil spells good favour for importers in Africa. The price of crude has been on a steady drop despite attempts by producers to cut output. As a result, many African countries are taking advantage of the situation and stock piling their reserves. Take for instance the case of East Africa, crude oil represents more than 20 percent of Tanzania’s annual imports. So a drop in price of crude means the country can afford to buy more and reserve for future use. However no official report has been issued as to the government policy on the…

Countries neighbouring Tanzania including Uganda, Rwanda and Zambia have barred truck drivers from the country to cross their borders. The development comes as cases of the COVID-19 in Tanzania now reach 480 with 196 new cases reported both on the mainland and on the island of Zanzibar. Of these, 174 are from Tanzania Mainland and the other 22 are from spice isles of Zanzibar. The grim news gets only worse with the announcement of six more deaths bringing the total number of deaths to 16. Not all is doom and gloom, there are reports of 167 people recovering from the…

Rwanda is poised to launch what it refers to as the ‘COVID-19 recovery fund’ that will serve to finance economic recovery efforts post the virus pandemic. Among the sectors slated to benefit from the recovery fund is the country’s tourism sector. It only makes sense since, the tourism sector is one of the most affected sectors along with the catering and hospitality sectors as well. In so doing Rwanda, which actually called for an emergency East Africa Community (EAC)  Heads of State meeting to deliberate regional response to the coronavirus pandemic, has again set precedent been the first country in…

Most businesses are looking for digital options to conduct their businesses and banks are no exception. Already the economy was tipping towards digitizing most all its activities but with the onslaught of the coronavirus, digitizing is no longer optional but a must. Banks are now pushing for 100 percent digital migration of their customers seeking at least 90 percent of their services to be offered remotely. In Tanzania, CRDB Bank has announced that it is aiming to increase online and simbanking to 90 percent by the end of the year. To achieve this goal, the bank has launched a campaign…

The second 20 years Treasury Bond that was auctioned last week by the Central Bank of Tanzania has oversubscribed, again. The Bank of Tanzania (BoT) was forced to close the trading session as the market gabbled up the high interest rate bond. The  bond had an attractive interest rate of 15.85 percent coupon rate was offered in the 20-year instrument held on Wednesday slightly down compared to 16.21 per cent of the session held in February this year. The auction was meant to serve as a debt instrument that the government targeted to raise only 117bn/-, local media reported mid…