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Banking in Tanzania is taking a different shape and form as competitive banks such as CRDB Bank begin injecting serious resources to transform banking and businesses.
Banks are now offering a rather creative element of financial services. Agents, ATMs, mobile and internet banking are transforming how people exercise financial services while bringing the gap between the banked and unbanked population.
- Global Finance has recently awarded CRDB Bank best bank in the country.
- CRDB Bank is the first bank in Tanzania to be rated by Moody Investor Services.
- CRDB Bank singlehandedly becomes the first bank in the country to have pulled a successful deal of raising funds from international markets.
From that standpoint, CRDB Bank is working tirelessly to play its part in improving the welfare of small and medium-sized businesses by offering them realistic and creative banking services that lead as an example for other banks in Tanzania.
Tanzania is building irrigation schemes for rice production and encourages efficient use of fertilizers via its 10-year National Rice Development Strategy Phase II (NRDS-II). “The NRDS-II purpose is to double the area under rice cultivation from 1.1 to 2.2 million hectares from 2018 to 2030, double on-farm rice productivity from two t/ha to four t/ha by 2030, and reduce post-harvest loss from 30 per cent to 10 per cent by 2030,” according to ITA.
The exportation of goods is a numbers game. Numbers give a unique perspective on the trend of agro-product exportation across potential and competitive markets in the region and abroad.
ITA shows that the exportation of corn has faced setbacks in the financial year 2021/2022 as forecasted to decrease by 20 per cent, equivalent to 80 million metric tonnes, due to the COVID-19 pandemic disrupting supply chains. The decrease is attributed to reports of truck drivers’ screenings,…
Thanks to the credit extended by BoT, the private sector credit maintained a strong recovery pace, recording an annual growth of 10 per cent, the same as in the preceding month, and significantly higher than the 2.6 per cent recorded in January 2021.
The central bank report noted that accommodative monetary policy had catapulted good performance of the sector. Money supply growth was strong in January 2022 and consistent with the target of 10 per cent for 2021/2022.
“Extended broad money supply (M3) grew at an annual rate of 14.9 per cent compared with 15.5 per cent in the preceding month.”
The review unequivocally pointed out that the growth rate was more than twofold of the outturn in the corresponding period in 2021.…
In the past decade alone, there has been a proliferation of new means of digital payment that to a great extent has brought about financial inclusion in a way that traditional platforms like banks and money lenders couldn’t.
It is the introduction of these new non-bank financial services providers generally referred to as FinTechs that has conjured the need for digital financial services regulations. Towering above FinTechs are Mobile Network Operators (MNOs), commanders of the Digital Financial Services market.
MNOs were lucky enough to find a ready and defined market to usurp. MNOs already had an existing client base and an enormous network of agents that were using their mobile telecom services for texting and calling.…
According to the review, money supply to accommodative monetary policy measures and supportive fiscal policy during the first half of 2021/2022.
Tanzania is a nation whose economy is driven by the healthy participation of the private sector, the sector fair well amid slow times.
Credit to the private sector grew by 5.9 per cent compared with an average of 5.1 per cent from July to December 2020.…
It further explains that the RCF disbursement will continue to help address Tanzania’s urgent balance of payment needs arising from the Covid-19 pandemic.
The money will also serve to provide Tanzania with concessional resources needed to take measures to mitigate the severe socio-economic impact of the pandemic.
Tanzania’s economy is heavily dependent on the tourism industry and as yet, the IMF cautions that travel services receipts and travel arrivals continue to remain below pre-pandemic levels.…
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Since Tanzania is still conducting research on cryptocurrencies, rules to govern the sector will be issued after research on crypto is complete. Currently, Tanzania has no regulations for cryptocurrencies and those trading in the sector have been urged to be cautious.
However, there is no timeframe for when regulations will be issued.
In June, President Suluhu asked the country’s financial leaders to prepare for crypto and blockchain as the country drops its conservatism and flies its doors open to the new era of digital currency.…
- Gold exports accounted for 43 per cent of goods exported by the year ending September 2021
- The Tanzanian shilling is argued to be stable against the US dollar
- Still, debt is a thorn to the Tanzanian government as it stands at more than $33 billion
The central bank of Tanzania released its monthly economic review report on 11 November, for October 2021, and it depicts the economy to be stabilised, despite a few sectors showing some decline in performance.
One of the most promising notes in the report is the stability of the shilling against the US dollar, “trading at an average rate of Tshs. 2,309.62 per US dollar in September 2021, compared to Tshs. 2,310.88 per US dollar in the preceding month,” the report noted.
On this crucial sector of the economy, the report noted that inflation remained within the target of 3.5 per cent for the years …
As the world and the East African region continue to recover from different kinds of economic shocks triggered by Covid-19, inflation in Tanzania has also taken different turns. According to the review, in August 2021, twelve-month inflation remained at 3.8 per cent, which is noted to be the same, as the last month.
On the other side of the fence, the review showed that core inflation—of which its index calls of the largest share in consumer price index (CPI), rose to 4.5 per cent in August 2021 from 4.1 per cent in July 2021, this is attributed to the increase in transport costs, “reflecting an upward shift in fuel prices”.
Things seemed to work better in food inflation, whereby annual food inflation—excluding alcoholic beverages, slimmed down to 3.6 per cent from 5.1 per cent, the review argues that this is due to a decrease in prices of maize and maize …
- Energy, fuel, and utility inflation increased to 5.1 per cent in August 2021 from 3.6 per cent in July 2021
- 12-month inflation remained at 3.8 per cent which is the same rate as the previous month
- Interest rates charged on loans by banks remained unchanged
The Tanzania Central Bank (BoT) released the monthly economic review last week, which breaks down the performance of different economic sectors, of which most portions of the economy portrayed modest performance.
The report showed that, in August 2021, twelve-month inflation remained at 3.8 per cent which is the same rate as the previous month, and below the country target of 5 per cent in 2021/2022.
Further, on that line, core inflation which BoT argues, is the index accounts for the largest share in consumer price index (CPI), increased to 4.5 per cent in August 2021 from 4.1 per cent in July 2021—this is attributed …