NMB

Tanzania is one of the top growth performers in East Africa, with an average real GDP growth rate of 6% over the past five years. Growth slowed in 2020, due to COVID-19 resulting in a slowdown in economic activity and weakened business confidence. The economy showed signs of recovery after experiencing supply chain disruptions, covid related challenges, and climate-related constraints, evidenced by an improvement in economic indicators. The economy recorded an estimated GDP growth rate of 4.6% in 2022, marginally higher than the 4.3% growth in 2021. The government’s efforts combined with the Bank of Tanzania’s proactive implementation of accommodative policies yielded an improvement in the business environment.

The agriculture and services sectors remain the key sectors in Tanzania however, the government continues to prioritise the energy, mining, and tourism sector. The country is amongst the fastest growing economies in Africa, with a projected GDP growth rate of 5.2% for 2023. Tanzania’s resurgence both economically and politically has brought a sense of stability to the country.

The Bank of Tanzania (BoT) regulates the sector, which includes 34 commercial banks. BoT has played a key role in maintaining stability, managing credit risks, and implementing reforms to promote banking activities, reduce interest rates, and improve the financial environment. These efforts have contributed to continued sector growth. As of 2024, the banking sector is dominated by five major banks, accounting for over 70% of profitability, with NMB and CRDB leading in net profit, assets, loans, and customer deposits. NMB remains the most profitable, with an average Return on Equity (ROE) of 22% from 2019 to 2023, reflecting strong performance despite market challenges. With a business-friendly approach from the President and ongoing regulatory support, the sector is well-positioned for continued growth.