Tanzania Banking and Finance Sector

Tanzania embarked on financial liberalization in 1992 in order to sustain its economic growth.

This has been done by mobilizing financial resources, increasing competition in the financial market and enhancing quality and efficiency in credit allocation.

As a result, the sector has been booming, particularly during the last few years.

Since embarking on financial liberalization, the total assets have increased by 60%, from $1.7 billion at the end of 1999 to $2.7 billion at the end of June 2004.

With a total of 27 registered banks and the few non-banking financial institutions, which are not allowed to open current accounts, the market is characterized by a few big players and several small banks.

The securities market in Tanzania also emerged in the 1990s as a result of the government policy of liberalizing the financial sector, which included a study on monetary issues.

Within such framework, the Capital Markets and Securities Authority (CMSA) was established in 1994 under the Capital Markets and Securities Act.

Following the establishment of the CMSA, the Dar es Salaam Stock Exchange (DSE) was incorporated into the Tanzania banking and finance sector.

Currently, the Dar es Salaam Stock Exchange is the only formal trading place for securities in Tanzania, where nine companies are listed.