Diplomatist Special Report - Tanzania Tanzania 2018 | Page 41

and regulatory framework to allow for competition in the
delivery of fi nancial services. The Tanzanian government has
been promoting the expansion of the banking system through
the Second Generation Financial Sector Programme and
allowed more private banking and microfi nance institutions
to enter the market.
Tanzania has emerged as a regional leader in its push
to provide a conducive environment for fi nancial inclusion
by allowing non-banking institutions to provide fi nancial
services. As a result of the liberalisation, the banking sector
in Tanzania has been booming, particularly over the last few
years. New merchant banks, commercial banks, bureau de
change, insurance companies, a stock exchange and related
fi nancial units have entered the market.
The Capital Market and Security Act, 1997 led to the
establishment of the Dar es Salaam Stock Exchange as
another alternative for raising capital. It is small, with total
market capitalisation at 20 percent of GDP. According to the
National Board of Statistics (NBS) of Tanzania, the fi nancial
services sector grew by 6.6 percent in Q3 of 2015 compared
to 9.4 percent in Q3 of 2014. Lending increased from TZS
11.7 trillion in 2014 to TZS 14.3 trillion in 2015. According
to the state-run National Bureau of Statistics (NBS), growth
is projected to remain robust at 6.7 percent in 2018 and 6.9
percent in 2019, representing one of the best performances
in East Africa.
*Author is the Consulting Editor at Diplomatist Magazine
TANZANIA• 41