Financial sector stable: BoT Governor

THE financial sector is strong and stable despite the global economic challenges and has continued to play a significant role in the growth of the economy, Bank of Tanzania (BoT) Governor, Mr Emmanuel Tutuba, said

Speaking at the launch of the Savings and Credit Cooperative Societies (SACCOS) annual report for the year 2022 over the weekend, he said Tanzania had a well-managed financial sector with adequate capital and sufficient funds.

“The financial sector in our country is very stable such that if you are to utilise the partnership well by fulfilling your targeted goals, you will accelerate our economic growth”, said Mr Tutuba.

He said Tanzania has made great strides in the cooperative sector where some SACCOS have graduated and generated big capital and shares with its members saying they can still use the opportunity to increase their incomes thus, boosting the country’s economy.

He urged Saccos leaders, members, and executives to continue to protect their resources and systems to ensure the efficiency of work to be able to compete in the financial sector.

Governor Tutuba also praised the Tanzania Cooperative Development Commission (TCDC) for improving the cooperative-related issues emphasizing the government road map towards cooperative societies maintaining strong partnerships by building a new image and modern working environment.

He said the Central bank and the commission will continue creating the enabling environment to ensure that Saccos across the country operate at all times in a safe and conducive environment in accordance with laws, guidelines, and policies to ensure strong systems with effective control of resources, capital, and security for the members’ assets.

For his part, the Registrar of Cooperative Societies Dr Benson Ndiege said TCDC has continued to implement its roles of promoting, registering, licensing, and supervising cooperative societies and attaining positive success and progress.

He said for the Saccos annual performance and supervision for the year 2021, a total of 801 Saccos were licensed and members have increased by 38 per cent to 18 million last year, from 13 million members in 2021.

Mr Ndiege further noted the increase in assets by 37 per cent 889.53bn/- recorded in 2021 to 1.22tri/- by last year while total savings and deposits climbed to 223bn/- from 678.81bn/- in 2021 to 897bn/- in 2022.

He highlighted the Saccos loan portfolio that has increased by 12 per cent to 105tri/- until December last year from 798.40bn/- registered in 2021.

Furthermore, he said Saccos share capital rose to 203bn/- from 140.11bn/- registered in 2021, equivalent to 45 per cent.

He further clarified that the number of employees in the co-operative society increased to 15,321 until last year from 14, 976 of the prior.

The number of female employees has increased to 6,459 until last year from 6,038 recorded in 2021.

Mr Ndiege however said the investment in Saccos increased by 18.3 per cent to 94.2bn/- from 79.6bn/- in 2021 pushed by the most significant investment component in buildings, attributing some 39.6bn/- of the total investment, equivalent to 42 per cent.

In addition, Saccos payments to the government as tax and other deductions have increased to 9.5bn/- from 7.84bn/- recorded in 2021 pushed up by numerous reasons including the amendments done by the government in the Finance Act NO.3 of 2021.

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