For the government, boosting the proportion of the population with access to financial services is a strategic priority. According to a 2016 IMF report, financial inclusion rose by 42 percentage points to 58% of the population between 2009 and 2013 – a surge which the IMF attributes almost entirely to new distribution channels, such as mobile...
The government’s process of economic reform is having far-reaching effects on various entries on banks’ balance sheets. Many reform measures, such as the more rigorous implementation of the tax code, are being felt indirectly by the banking sector in the form of rising non-performing loans and slower loan growth. However, a recent decision...
The slowing growth rate of credit to the private sector has emerged as a key industry issue in 2016 and 2017. After expanding at a rate in excess of 20% throughout most of 2015, central bank data shows that in January 2016 growth began to decline sharply. By October 2016 credit expansion to the private sector had fallen beneath the 10% level,...
There are currently 31 insurance companies in Tanzania, and as the regulator of the sector we do not necessarily see the need for consolidation. Insurance companies have expressed, however, that there are significant barriers to consolidation, including the application of the 18% value-added tax (VAT). There is a charge on signed premiums, but...
While Tanzania’s insurance industry premiums have increased over the past year, elevated competition has affected underwriting profits. An agenda of wholesale regulatory reform may be welcomed by the larger players as a basis for a more sustainable market, but many insurers with lower levels of capitalisation face an uncertain period, as...
One of the focal points of the Tanzanian government’s long-term development strategy is industrialisation. In the five-year development plans (FYDPs) that serve as the foundation for the Tanzania Development Vision 2025, manufacturing is a key component. The second FYDP – covering 2016 to 2021 – set a sectoral growth target of over 10%...
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