Tanzanians are benefiting from major improvements in the financial sector as the government continues to roll out its Financial Sector Development Plan.
The program has expanded access to banking and microfinance services, encouraged the use of digital payments, and strengthened the overall stability of the sector.
Dr. Natu El-maamry Mwamba, Permanent Secretary at the Ministry of Finance, said the plan is helping citizens access affordable and reliable financial services in both urban and rural areas.
She urged all institutions in the sector to maintain momentum as the country works toward achieving the Financial Sector Master Plan by 2029/30.
“The Ministry is committed to making financial services more accessible to all Tanzanians. We will continue promoting digital payment systems, protecting users from cybercrime, and making sure that our financial system grows stronger and safer,” Dr. Mwamba said in Dodoma during a meeting of the Financial Sector Steering Committee.
The government is also developing a national financial sector database, which will make it easier to access important statistics and monitor progress.
At the same time, efforts are being made to improve financial literacy among citizens so they can make informed decisions when using financial services.
Ms. Dionisia Mjema, Assistant Commissioner for Financial Sector Development, explained that the microfinance sector has expanded rapidly.
By December 2024, the country had more than 2,300 non-deposit-taking microfinance institutions, 964 licensed SACCOS, and nearly 59,000 community groups providing financial services to their members.
“These groups and institutions are bringing services closer to people who were previously left out,” she said.
The plan has already produced visible results. Financial inclusion rose from 65 percent in 2017 to 76 percent in 2023, giving more people access to loans, savings, and insurance.
The financial sector grew by 13.8 percent in 2024, while non-performing loans dropped sharply from 9.4 percent in 2020 to 3.3 percent in 2024, showing better loan repayments.
Private sector credit also expanded, rising from 10 percent of GDP in 2021 to 17.2 percent by mid-2024.
Experts say these gains are important for ordinary Tanzanians. Stronger financial services mean that small businesses can access affordable credit, farmers can borrow to improve production, and families can save and invest safely.
The sector’s growing contribution to the national economy – now at 3.1 percent of GDP – reflects how financial reforms are directly supporting growth and development.
The Steering Committee meeting included representatives from the Bank of Tanzania, insurance and capital market regulators, the Financial Intelligence Unit, as well as ministries and agencies responsible for regional administration, labour, foreign affairs, and industry.
