DAR ES SALAAM: TANZANIA’S banking sector has remained resilient, with total deposits across all banks reaching around 67tri/-, driven by the country’s steady economic performance over the past four years.
According to the Director of Financial Markets at the Bank of Tanzania (BoT) Mr Emmanuel Akaro, this growth reflects the trust and confidence individuals and businesses have in the banking system, underscoring the sector’s vital role in economic development.
“With a robust deposit base, the banking sector is well-positioned to finance investments, support economic activities and enhance financial inclusion, ultimately driving sustainable national development,” he stated.
Furthermore, the banks’ capital adequacy has risen by 21 per cent above the 10 per cent minimum threshold set by the Central Bank, while non-performing loans have significantly dropped from 9 per cent in 2020 to 3.3 per cent in 2025.
During the review period, return on equity increased to 25 per cent, while return on assets surpassed 6 per cent.
Mr Akaro, representing the central bank chief, spoke at the second ‘Tanzania Institute of Bankers (TIOB) Scholar Banking Challenge 2025,’ in Dar es Salaam yesterday.
The competition, organised for the second time by TIOB, aims to equip university students with financial literacy and enhance their understanding on banking and financial systems.
Starting yesterday, the competition will run for three months, concluding in July this year.
“Overall, I can describe our banking sector as strong, steady and resilient. This is reflected in the substantial loans granted to the private sector and the significant profits reported by banks,” said Mr Akaro.
Mr Akaro further explained that the banking sector has seen a 30 per cent increase in liquidity, enabling substantial loan disbursements to the private sector.
He commended TIOB for organising the competition for university students, highlighting its importance in preparing skilled professionals for efficient banking and economic management.
“The economy of any country, including Tanzania, relies on a strong and effective financial system. Therefore, we need creative professionals in banking and finance to address emerging economic challenges,” he said.
He further emphasised that financial literacy will motivate youth to avoid betting and lotteries, encouraging them to focus on legitimate, productive income-generating activities.
TIOB Executive Director Patrick Msusa stated that their mission is to collaborate with financial and banking institutions to contribute to Tanzania’s economic development by building the talents and skills of youth through these competitions.
“As the economy continues to grow under the leadership of our Sixth-Phase government, we see banks playing a key role in facilitating this growth by ensuring capital is accessible for investors and businesses,” said Mr Msusa.
He urged all universities and higher learning institutions to support these competitions and encourage youth participation.
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Last year’s competition winner, Mr Erick Kundael, encouraged fellow students to join the competition, highlighting the benefits of gaining practical insights into how banks and financial systems operate.
Launched by the BoT Governor, the competition attracted 2,460 students from 49 universities.
