DAR ES SALAAM: BANK of Tanzania (BoT) Governor, Emmanuel Tutuba yesterday said that 70 per cent of the financial sector in the country is owned by the private sector, thanks to the friendly business and economic environment put by the government.
He attributed the private sector’s role in the financial sector to the enabling environment created by the sixth phase government under President Samia Suluhu Hassan.
The Central Bank Governor said under President Samia, the financial sector has played a pivotal role in fostering economic growth and stability in the country.
“The country’s economy is currently run by the private sector due to conducive economic and business environment put by the government,” said Mr Tutuba during the launch of the Scholar Banking Challenge organised by Tanzania Institute of Bankers (TIOB).
He said the country’s financial sector has continued to be stable, with sufficient capital and liquidity and therefore operating profitably.
For example, the banking sector generated a profit of approximately 412.8bn/- with total assets reaching 54.3tri/- for the quarter ending December last year.
He added that many private banks are doing well and due to that, they can raise capital and issue loans without difficulties, which indicates the government’s effort to ensure a friendly economic environment.
During the period under review, the rate of non-performing loans (NPLs) decreased to 4.3 per cent from 8 per cent in the corresponding period in 2022.
The operating environment, regulated by the BoT, has been supportive for banks and financial institutions to post outstanding performance during the period.
The sustained growth of the banking sector and the sector’s ability to contribute to the country’s economic growth is of paramount importance.
Speaking about the programme, Governor Tutuba who is also the TIOB’s Chairman said the launch of the challenge is a fulfilment of the board’s directives to the TIOB management to find a way of enhancing capacity building on financial issues to the youth in colleges.
“I instructed TIOB to find an easy way to reach students in colleges pursuing financial courses and I am happy to see that you have started taking action,” said Mr Tutuba.
On his part, TIOB’s Executive Director, Mr Patrick Mususa said the objective of the challenge is to increase awareness on financial issues by using best practices and also run a commercial institution professionally.
The competition which targets 2,000 students participants is expected to run for three months.
