Browsing: BoT

• Tanzania is Africa’s fourth-largest gold producer and ranks 18 in the world.
• The country is ramping up production of the precious metal, targeting over 6 tonnes of gold annually.
• Gold miners and traders asked to allocate no less than 20% of their gold output to Central Bank of Tanzania.

Tanzania’s national gold reserve is growing and recent push geared at speeding up the growth of the country’s reserves signal to better days ahead for the nation’s currency. In the latest move, Tanzania has ordered all gold miners and traders to allocate no less than 20 per cent of their gold output to its central bank.

According to the Central Bank of Tanzania (BoT), this strategy is meant to help the country diversify its foreign reserves. By boosting its gold reserves, Tanzania hopes to offset the depreciation pressure facing the Tanzanian shilling.

According to authorities in the country; “This diversification intends …

• Inflation in Tanzania has gone down to 3%, lower than Kenya’s 4.3% and Uganda’s 4% posted in July.
• While economic experts commend the country’s monetary policy for managing inflation, economic woes facing the poor persist.
• Policymakers in Tanzania project to control inflation within the National Vision 2020-2025 target of 3.3 to 4.4%.

Inflation in Tanzania has inched slightly lower to 3.0 percent, compared to 3.1 which was recorded in June, the National Bureau of Statistics (NBS) has reported.  The NBS attributes this reduction to the country’s Monetary Policy Committee (MPC) in controlling inflation.

“What lower inflation means is that the cost of living has reduced…the price of goods and services have gone. The current efforts have ensured inflation remains within acceptable limits,” Central Bank’s Directorate of Research and Policy, Mr. Marwa Patrick commended the MPC as strategic and successful. 

“This achievement reflects meticulous fiscal and monetary policies and …

The Monetary Policy Committee (MPC) which most recently held its ordinary meeting on 22nd May 2023 has approved the toughened stance. The MPC resolved that; “Given the domestic and global economic conditions, the Bank is to sustain the implementation of less accommodative monetary policy in May and June 2023,” in other words, Tanzanians should tighten their belts. Some more. This policy stance will ensure that inflation in Tanzania remains within the target of 5.4 percent in the remainder of 2022/23.” …

• Tanzania’s economic reform program is progressing well in a challenging global economic environment and the authorities remain committed to IMF’s loan plan.
• Ongoing reforms in the country touch on strengthening the economic recovery, preserving macroeconomic stability, and supporting structural reforms toward sustainable and inclusive growth.
• Tanzania’s three-year Extended Credit Facility Arrangement for total access of about $1,046.4 million at the time of program approval received the greenlight on July 18, 2022

The International Monetary Fund (IMF) has given Tanzania’s economy a shot in the arm by furnishing the country with $153 million loan, bringing to around $304.7 million, the amount received so far under the lender’s extended credit arrangement struck in July last year.

The loan will be channeled towards economic recovery, preserving macro-financial stability, and promoting sustainable and inclusive growth.

IMF argued that reforms centre on strengthening fiscal space to allow for much-needed social spending and high-yield public investment, …

• Tanzania inflation hits five year high
• Zanzibar bans export of food commodoties ahead of Holy Month
• China reopens market, expected to speed global recovery

Tanzania’s annual inflation rate has hit its highest point in five years clocking 4.9% in January 2023 and at the close of February the rate was no better.

According to the Tanzania Central Bank The Bank of Tanzania (BoT), the prices of food & non-alcoholic beverages went up by 9.9% up from 9.7% in December of last year.

The BoT monthly economic update report showed similar increase in prices across all sectors and indicator that the cost of living in Tanzania has increased drastically. Wit no matching increase in income, this means that the burden of acquiring daily basic needs like food has become worse for Tanzanians.

With percentages in the brackets here are how several sectors are suffering from price increase in Tanzania: Transportation (6.2% …

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. (topvillasrealty.com)

• 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 …

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.…