Tanzania’s banking sector assets grow by 4%

Tanzania’s banking sector has seen an asset growth of almost 5%, beating several adverse odds brought on by the coronavirus pandemic in 2020.

According to a report filed by EY Tanzania during the previous week, the asset growth rate dropped from 2019’s 9.6% to 4.1% in 2020.

However, it is a laudable increase given the challenges posed, and the economic crises brought on, by the devastating effects of the pandemic and the various resulting restrictions imposed in 2020. 

About 54.1% of the growth witnessed in 2020 was powered primarily by loans, advances, and overdrafts, while investment in government and debt securities contributed 17.1%, and other assets accounted for 12.8%.

The report, titled “Tanzania Banking Sector Review 2020”, was developed based on data gathered from 39 banks and other financial institutions. Part of the resolution reached based on the study is that the industry is relatively stable and resilient, given the level of capital buffers and the liquidity available to most of the banks.

The report indicated that Tanzania’s banking sector is “still considered stable and resilient, [and has the] ability to quickly capitalize on alternative channels such as agency, mobile and internet banking.”