The banking sector in Tanzania is yawning for more customers following the detailing of how the half-a-century of financial institutions in the country are only catering for a 12.4% margin, meaning six million locals.
Dr William Mgimawa, who is the Minister for Finance said that what the banking sector needs is to spruce up investments by spreading its tentacles to further areas of the country that are now suffering a financing deficit.
He related the institutionalization of banks in all corners of a country as privy to the development of an economy, and thus the reason the government is ready to uphold the right policies to ensure that the private stratum of the economy, to which commercial banks belong, operates in a competitively conducive setting.
Tanzania has about fifty commercial financial institutions alongside the Bank of Tanzania (BOT) which is the government’s banker. Tanzania has also attracted a regional bank, namely Kenya Commercial Bank, which has experienced exponential growth in recent years.
The traditional heavyweights in world banking, including Barclays, have also made a mark on the fiscal economy of the country by serving all classes of the market. Barclays Tanzania has been in operation beginning 1925, and since then has experienced gradual growth that has insured it a place in the sector as having a proportion equal to 6 percent of the market. Barclays vaunts an asset base of $480m against the year 2011’s value of the gross asset base in the entire Tanzania banking sector, which stood at $8b.
One of the most prominent of these financial outlets is Bank of Africa which has hitherto had 17 branches in the country, before launching its eighteenth outlet in the province of Kahama, a function that the delegation from Treasury went to oversee.
The other prominent banks that have taken root in the East African country include Access Bank, Bank M, Azania Bank, Akiba Commercial Bank and Citibank. The Orient also vaunts a consortium of interests similar to what the West has enjoyed since the colonial era with its subsidiaries. The high-flyers from Asia include Bank of Baroda and Bank of India.
Bank of Africa has an equally wide outreach in periphery markets in the region including Kenya, besides 13 other destinations in the continent. Its asset base, inclusive of that of the Tanzania market totaled to some 3.55b Euro in the tally of three years to date. It serves the business as well as small-scale borrowing community, but has also investment interests.
Tanzania has also attracted a regional bank, namely Kenya Commercial Bank, which has experienced exponential growth in recent years. The bank, which is constructing its first state-of-the-art banking tower in the Upperhill suburb of Nairobi, after staying for a long time at the congested commercial heart of the city, has also a branch in Rwanda.
As Tanzania looks for more banking partners to help in its economical stakes and increase its citizenry’s access to monetary resources, the country is also attracting large multinationals. These cut across all classes of lending.