‘Banking sector stable’

DAR ES SALAAM: TANZANIA’s banking sector has continued to show strong and steady growth, with rising assets, improved liquidity and a significant decline in non-performing loans, a move that reflects the resilience of the national economy and the solid performance of financial institutions in the country.

Speaking during the 24th Graduation Ceremony of the Tanzania Institute of Bankers (TIOB) in Dar es Salaam yesterday, the bank of Tanzania (BoT) Governor, Emmanuel Tutuba said the banking sector remains stable and strong, backed by positive financial soundness indicators and solid macroeconomic performance.

According to him, total banking sector assets rose to 71.89tri/- in September 2025, up from 68.07tri/- in June 2025, reflecting continued expansion and deeper financial intermediation.

Loans, advances and overdrafts reached 43.62tri/-, while deposits amounted to 50.29tri/-.

He added that the sector continues to maintain strong capital and liquidity positions, with the capital adequacy ratio at 19 per cent nearly double the regulatory threshold of 10 per cent.

Liquidity also remained high at 27.4 per cent, above the 20 per cent requirement.

He also pointed to the significant gains made in reducing Non-Performing Loans (NPLs), which dropped to 3.27 per cent, well within the acceptable benchmark of 5 per cent.

“About four years ago, NPLs were at eight percent. We have made remarkable progress in improving asset quality,” he said.

On the broader economy, Tutuba cited positive macroeconomic trends, including robust GDP performance.

He said the country’s economy grew by 5.5 per cent in 2024, up from 5.0 per cent in 2023, with average growth for the first three quarters of 2025 reaching 5.8 per cent.

“We are optimistic to reach the expected growth of six per cent for this year,” he said.

He also said inflation also stabilised at 3.3 per cent, below global averages.

“Similarly, for our inflation, as you may recall, that inflation in the year 2024 as of December was about average of 3.3 per cent, which was more favourable as compared to the world inflation last year, which was 4.7 per cent. We have observed good trends in the year 2025, where for three consecutive quarters, we have remained with average inflation rate of about 3.3 per cent,” he said.

He added that Tanzania’s current account deficit has narrowed dramatically from around eight per cent three years ago to 2.6 per cent as of September 2025, reflecting improved external balances and continued recovery of key sectors.

“In terms of current accounts and balance as well, we have continued to narrow the gap, about three years ago current account deficit, Tanzania was about eight per cent. Now, as of September this year, we have reached the time where our current account deficit has narrowed to up to 2.6 per cent,” he said. Addressing the new graduates, Mr Tutuba commended TIOB for strengthening professional standards in the banking industry and urged banks to continue investing in human capital.

“Today’s graduation is not just a celebration of academic excellence but a commitment to strengthening the backbone of our financial sector,” he said.

He stressed that professional bankers play a critical role in safeguarding public resources, accelerating private-sector growth, enhancing transparency and fostering good governance.

Mr Tutuba encouraged graduates to embrace continuous learning, digital transformation and innovative thinking, noting that the future of banking relies heavily on data analytics, technology-driven solutions and strong governance frameworks.

“With great pleasure, I congratulate you all for reaching this level. The knowledge you have acquired is an important asset not only for yourselves but for Tanzania’s banking sector and economic development,” he said.

TIOB Executive Director, Patrick Mususa reaffirmed the institute’s commitment to strengthening the country’s banking profession through innovation, partnerships and continuous skills development.

A total of 74 candidates graduated during the ceremony, among them, 4 students completed the Banking Certificate programme, while 64 candidates successfully qualified as Certified Professional Bankers (CPB) and six graduates completed the specialty certificate programmes, which included Agricultural Finance and Advanced International Trade Finance