In a significant revelation, Bank of Tanzania (BoT) Governor, Emmanuel Tutuba, disclosed that a staggering 70 percent of the financial sector in Tanzania is owned by the private sector. He credited this remarkable achievement to the conducive business and economic environment fostered by the government.
Governor Tutuba attributed the pivotal role of the private sector in the financial landscape to the supportive environment crafted by the sixth phase government, led by President Samia Suluhu Hassan. He emphasized that President Samia's administration has been instrumental in creating an environment where the financial sector can thrive, thereby contributing significantly to the nation's economic growth and stability.
Speaking at the launch of the Scholar Banking Challenge organized by the Tanzania Institute of Bankers (TIOB), Governor Tutuba highlighted the current dominance of the private sector in steering the country's economy. He noted that the financial sector remains stable, boasting ample capital and liquidity, resulting in profitable operations.
Governor Tutuba cited impressive figures from the banking sector, revealing that it generated a profit of approximately 412.8 billion Tanzanian Shillings, with total assets reaching 54.3 trillion Tanzanian Shillings for the quarter ending December last year. He further commended private banks for their robust performance, enabling them to raise capital and issue loans seamlessly.
Remarkably, the rate of non-performing loans (NPLs) decreased to 4.3 percent from 8 percent during the corresponding period in 2022, indicating improved asset quality and financial health within the sector. Governor Tutuba attributed this positive trend to the supportive regulatory framework established by the BoT.
Underscoring the importance of sustained growth in the banking sector, Governor Tutuba reiterated the sector's significant contribution to the country's economic development.
Turning to the Scholar Banking Challenge, Governor Tutuba, who also serves as the Chairman of TIOB, expressed satisfaction with the initiative. He highlighted that the challenge aligns with the board's directive to enhance capacity building on financial issues among youth in colleges.
In response, TIOB's Executive Director, Mr. Patrick Mususa, outlined the objectives of the challenge, emphasizing its role in raising awareness of financial issues and promoting professional management of commercial institutions.
The competition, targeting 2,000 student participants, is expected to run for three months, offering a platform for budding financial enthusiasts to showcase their skills and knowledge.