Banking

Tanzania has a well-developed and diverse financial services sector, with a number of large domestic and multinational lenders present, and a rate of financial inclusion that exceeds that of most other large economies in Africa. However, in line with major markets elsewhere on the continent, just five bodies account for roughly half of total assets. 2017 was a challenging year for Tanzania’s banks, as they adjusted to changes in the economic and regulatory environment. Slowing credit growth and increasing loan defaults have compelled the regulator to intervene, adjusting policy rates and increasing supervision of troubled lenders. Nonetheless, the fundamental stability indicators of the sector remain sound, and the industry is well positioned to take advantage of opportunities arising from the government’s development programme. This chapter contains interviews with Benno Ndulu, Former Governor, Bank of Tanzania; Ineke Bussemaker, CEO and Managing Director, NMB Bank; and Charles Kimei, CEO and Managing Director, CRDB Bank.