Samia calls for affordable loans

DAR ES SALAAM: PRESIDENT Samia Suluhu Hassan has called on financial institutions to make credit more affordable and accessible to ordinary Tanzanians, saying the true measure of success in the financial sector lies in its ability to improve lives, expand businesses and create economic opportunities for citizens.

She said financial sector reforms and economic growth would have little meaning if their benefits failed to reach wananchi and improve their livelihoods. Speaking during the Bank of Tanzania’s (BoT) 60th anniversary celebrations in Dar es Salaam yesterday, she said the performance of the financial sector should not be assessed solely by the number of people accessing financial services, but also by the extent to which those services enable individuals and businesses to prosper.

“The success of the financial system must go hand in hand with the well-being of individual citizens. Our measure of success should not be limited to the number of people who have access to financial services, but also to the extent to which these services help small businesses build capital and contribute meaningfully to the national economy,” she said.

President Samia further said that policymakers and financial institutions should regularly evaluate the real impact of financial services by examining how many people have increased their incomes, how many businesses have expanded, how many farmers have obtained timely financing and how many young people have transformed innovative ideas into successful enterprises.

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According to her, such indicators provide a more accurate assessment of whether financial inclusion is translating into tangible economic benefits for citizens. She also called on banks and other lenders to address barriers that continue to limit access to credit, including high borrowing costs, stringent collateral requirements and lengthy loan approval procedures.

President Samia stressed that concerns raised by citizens regarding high lending rates deserve serious attention. “When citizens raise concerns about high lending rates, they should be listened to rather than being presented with economic growth statistics,” she said.

The Head of State further encouraged financial institutions to adopt innovative lending models capable of reaching groups that often face difficulties accessing formal credit. She said that many women and young entrepreneurs operate successful businesses and maintain credible sales records, but remain excluded from formal lending systems because they lack conventional forms of collateral such as land and property.

“Many women and young people do not own land or property, yet they have thriving businesses, credible sales records and the ability to repay loans. Financial institutions should find innovative ways to recognise and support such borrowers,” she said.

President Samia urged lenders to explore alternative methods of assessing creditworthiness, including business performance records, transaction histories and other indicators that can help broaden access to financing. She said expanding access to affordable credit would enable more Tanzanians to invest, create jobs and contribute more effectively to national development.

Speaking at the event, BoT Governor Emmanuel Tutuba said the country’s strong economic performance over the years has been supported by prudent monetary policies, financial sector reforms and continued institutional transformation. He said since its establishment in 1966, the central bank has continuously adapted to changing domestic and global economic conditions, while maintaining macroeconomic stability and supporting sustainable economic growth.

“The reforms undertaken over the years enabled Tanzania to successfully navigate economic transitions and laid a foundation for sustainable growth and financial sector development,” Mr Tutuba said. He added that the external sector has remained resilient, with foreign exchange reserves sufficient to cover more than four months of imports, exceeding internationally recommended benchmarks.

Looking ahead, Mr Tutuba said the central bank would continue embracing innovation, strengthening payment systems and promoting financial inclusion to support implementation of the country’s Vision 2050 development aspirations. Minister for Finance Ambassador Khamis Mussa Omar described the establishment of the BoT in 1966 as a landmark achievement in the country’s economic history and a cornerstone of Tanzania’s monetary sovereignty.

He said the He said the institution has played a critical role in maintaining monetary stability, safeguarding the financial system and supporting economic growth over the past six decades.

Meanwhile, Zanzibar Deputy Minister for Finance and Planning, Dr Hamad Omar Bakar, described the anniversary as a testament to the central bank’s resilience, credibility and enduring contribution to national development. He reaffirmed Zanzibar’s commitment to continued cooperation with the Bank of Tanzania in advancing economic development and improving the welfare of present and future generations.