Browsing: Tanzania

• Less than 40% of adult population in Tanzania has bank accounts.
• Central Bank aims to increase integrated financial services access to 80% by 2028.
• Lack of collateral affecting disadvantaged populations from accessing bank credit.

Financial inclusion in Tanzania has increased considerably but with less than 40 per cent of the adult population having an account at financial institution, a pointer that policymakers in the country have a lot of work to do. To this end, the government, through the Bank of Tanzania (BoT), has announced plans to increase integrated financial services access to 80 per cent of the population by 2028.

BoT Deputy Governor, Ms. Sauda Kassim Msemo recently told media that financial services inclusion is crucial for sustainable economic growth of the East African nation. “The government continues to create a conducive investment environment, but we need to grow financial inclusion, especially access to banking,” she said.

She pointed …

• Illicit financial flows causing major losses to Tanzania’s mining industry.
• Experts cite tax avoidance as the leading motive behind Illicit financial flows.
• Tanzania moves to enforce strict laws to curb Illicit financial flows.

Illicit Financial Flows (IFFs) in Tanzania’s mining sector has become rampant despite government efforts to control the sector. Last month, almost 16 kilogrammes of smuggled gold were seized at the Dar es Salaam Port, a pointer to rising crime amid efforts by the East African country to power growth through increased investment in the mining industry.

Illicit financial flows refers to “the cross-border movements of illegally earned, transferred, or utilized financial capital that deprive countries of essential resources, undermining development and the well-being of citizens.”

IFFs are basically the result of investors seeking to earn profits above a given sector’s average. To do this, the unscrupulous businesses avoid taxes and generally view corporate tax and even corporate …

• Lake Victoria biodiversity is been destroyed by overfishing
• Researchers advice set up of common regulations among EAC states
• Due to overfishing, stock of commonest fish is falling drastically

Overfishing is depleting fish in Lake Victoria with all three countries—Kenya, Uganda and Tanzania—that surround the massive fresh water body reporting a steady decline in output. On the Ugandan side, it is reported that fisheries that mushroomed around the lake region are shutting down at an alarming rate.

“More than ten factories around the lake have closed and the remaining 25 are operating below capacity,” reported Jinja, a Uganda based inter-governmental organization.

On the Tanzanian side, the Department of Economics at the University of Dar es Salaam (UDSM) has conducted several studies on the problem and the findings are pretty grim.

“The depletion of stock in Lake Victoria is part of a similar problem occurring globally with fish stocks being depleted. When …

• 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 …

• Conservation efforts are helping increase the number of black rhinos in the wild.
• Poaching for ornaments and traditional medicines remains the biggest threat to black rhinos.
• Charity WWF reports that over 6000 black rhinos are in the wild today.

Black rhinos are a major tourist attraction in Tanzania, but they are also a key source of treasured ornaments and traditional medicine for China, despite the fact that the country has banned the trade in ivory.

“The main threat to the black rhino is poaching for the international illegal trade in rhino horn. Most, if not all, horn from Kenya and Tanzania is believed to be shipped to Vietnam and China. In the end-user countries, it is ground and used as medicine for a range of ailments, or carved into jewelry or art or preserved whole displayed for status,” reports the World Wildlife Fund (WWF).

However, for decades now, China has …

• Tanzania has received $149.4 million for budget support from the IMF.
• The lender has commended Dodoma’s ongoing economic reform and diversification plan.
• IMF approves $786.2 million for Resilience and Sustainability Facility (RSF) 

Days after the International Monetary Fund (IMF) ranked Tanzania third on its list of top-performing African economies, its Executive Board has announced an immediate disbursement of about $149.4 million for budget support after completing the third review of the country’s Extended Credit Facility (ECF).

“The Executive Board also approved a 23-month arrangement under the Resilience and Sustainability Facility (RSF) of about US$786.2 million to support Tanzania’s efforts to build resilience to climate change,” the IMF reports.

In its report, the IMF attributed Dodoma’s economic performance to the country’s commitment to economic reform and diversification. The multilateral lender noted that the country is currently focusing on attracting foreign investment, promoting sustainable development, and fostering a favorable business climate.

The …

• AI security is a major concern for African policymakers who are equally grappling with tools to harness the power of the new technology better to drive economic growth.
• Currently, Tanzania and other African countries are formulating AI security measures.
• Countries may not have to look far for guidance as the UK National Cyber Security Center (NCSC) has developed AI security guidelines that Africa can embrace.

AI security guidelines are increasingly becoming popular among developing countries as most African nations move to secure their cyber assets from the increasing threat of attacks. The need for Artificial Intelligence (AI) security comes even as governments and private sector leaders grapple with a myriad of options on how to tap the power of this new technology best to drive growth.

In East Africa, the Tanzania Bureau of Standards (TBS) has announced it is taking proactive steps to develop standards to ensure Artificial Intelligence (AI) …

• Kenya’s private equity deals size are expected to remain modest this year.
• However, despite the high optimism, deal sizes in East Africa are expected to remain modest.
• However, businesses are concerned that firms will be scouting for exits, too.

Kenya and its East Africa peers are confident that the fundraising environment for businesses will continue improving in the next 12 months even as the continent experiences mixed expectations.

New findings by Audit firm Deloitte show that while East and West Africans largely anticipate an improvement, opinions in North and Southern Africa are divided, with some expecting improvements, others predicting stagnation, and some foreseeing deterioration.

This outlook comes against the backdrop of persistent high interest rates, inflation, and geopolitical uncertainty, which led to a 9 per cent drop in finalized funds year-on-year in 2023.

The Deloitte Africa Private Equity Confidence Survey 2024, shows that in East Africa, optimism is on …

• China pledges closer economic and trade ties with Africa at 2024 FOCAC Summit.
• Mulit-million dollar deals signed between Africa and China at key summit.
• Annual trade volume between China and Africa to reach $300Bn by 2035

The just concluded Forum on China-Africa Cooperation (FOCAC) Summit has opened new possibilities for Tanzania and Africa’s industry as a whole. Held in Beijing, China, this ninth summit was attended by all 53 African Heads of State or their representative hosted by Chinese President Xi Jinping.

The FOCAC summit has seen President Xi pledge over $50 billion in aid and loans to support what he described as “Africa’s modernization efforts.” He highlighted key funding areas to include infrastructure and agricultural development over the next three years. Notably, President Xi said this new commitment is in addition to China’s zero-tariff policy that was announced earlier to boost trade volume between Africa …

• China commits to refurbishing TAZARA railway system during the just concluded FOCAC Summit in Beijing.
• China Civil Engineering and Construction Corporation (CCECC) has been awarded the tender.
• TAZARA capacity is now set to increase to two million metric tonnes.

TAZARA, a decades-old China-Tanzania railway that is vital in the East African country’s industry is set for modernization as a new pact to turn it into a fast train transportation system comes into force. Last week, a historic milestone was reached when Chinese President Xi Jinping, Tanzanian President Samia Suluhu Hassan, and Zambian President Hakainde Hichilema signed a Memorandum of Understanding (MoU) to revitalize the Tanzania-Zambia Railway Authority (TAZARA) railway.

The deal, which was reached at the 2024 Forum on China-Africa Cooperation Summit (FOCAC) in Beijing, will see China invest into developing the1,860-kilometer railway connecting landlocked Zambia to Tanzania’s port city of Dar es Salaam.

Work on this trans-Africa rail …