TANZANIA: TANZANIA is on the cusp of a financial awakening, with new doors opening for its citizens to actively participate in capital markets.
The inaugural financial inclusion report by the Bank of Tanzania (BoT) reveals an inspiring narrative of growth, innovation and opportunity.
As the nation celebrates a leap from 65 per cent of adults accessing formal financial services in 2017 to an impressive 76 per cent by 2023, the stage is set for a dynamic era of savings and investment that could redefine individual prosperity and national economic growth.
The momentum is palpable in the capital markets, where the number of investors surged by 12.5 per cent in 2023, reaching nearly 908,000 participants. This growth reflects the power of accessible technologies and innovative strategies to break traditional barriers.
Platforms like M-Pesa and Hisa Kiganjani are reshaping the way Tanzanians engage with the stock market. With just a few clicks, retail investors from urban hubs and remote villages alike can now participate in securities trading—a concept once limited to the few with insider knowledge and proximity to financial centres.
This financial inclusion renaissance has not happened by chance. Regulatory reforms, combined with targeted financial literacy programmes, have equipped Tanzanians with the tools to save and invest responsibly.
For instance, government securities attracted over 13,000 new investors in 2023, up from 11,000 the previous year, offering a safe and stable investment avenue.
Similarly, corporate bonds have seen a fourfold increase in investor participation, underlining a growing appetite for diversification.
The introduction of ESG-linked bonds by two banks, namely CRDB and NMB, in 2023 marks another significant milestone. These bonds direct investments toward sustainable projects such as renewable energy and waste management, enabling Tanzanians to grow their wealth while contributing to a greener future.
Meanwhile, Sukuk bonds, such as the one issued by KCB Tanzania, offer Sharia-compliant investment options, catering to the nation’s diverse demographic and fostering greater inclusivity in the financial sector.
Yet, it is not just about the innovations—it is about the people they empower. The report highlights the role of digital platforms in bridging the gap for underserved populations. With 51.72 million active mobile money accounts by the end of 2023, up nearly 35 per cent from the previous year, mobile technology is rewriting the rules of financial engagement.
Recently, M-Pesa, the largest super app in Tanzania with over 10 million active users, introduced the DSE Mobile Trading platform to its already extensive catalog of financial products.
Following this, it launched M-Wekeza, a service that enables Tanzanians to seamlessly invest their money under the guidance of professional asset managers.
This surge in digital access ensures that savings accounts, loans and even stock market trades are just a few taps away, even for those in the most remote regions.
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The strides in financial inclusion extend beyond technology to targeted efforts for women, youth and micro, small and medium enterprises (MSMEs). Tailored savings and investment products are bringing these traditionally underserved groups into the financial fold.
For instance, MSMEs secured 3.6tri/- in loans in 2023, a 16 per cent increase from the previous year. Such interventions not only fuel entrepreneurial growth but also set the stage for a culture of investment and wealth creation.
As this financial revolution gains momentum, the call to action for Tanzanians is clear: embrace the opportunities. Saving and investing are no longer the reserve of the elite; they are within reach for all. By participating in financial literacy programs, exploring digital tools and engaging with innovative products, individuals can unlock new possibilities for themselves and their families.
