The Tanzania banking sector embarked on a plan for financial liberalization in 1992 in order to sustain its economic growth. As a result of this liberalization, the banking sector in Tanzania has been booming, particularly over the last few years. 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.

The securities market in Tanzania emerged in the 1990s as a result of the government policy to liberalize the financial sector. Since then, most of the listed companies have been giving dividends of about 20% and none of them below 10%. The Market capitalization for the quarter ending December 2004 rose to TShs 2,325 bn from TShs 665 bn the year before.