Africa Financial Sector Responses to COVID-19 - Tanzania

Jul 29, 2020

As a Partnership committed to the African financial sector (AFS) development and resilience, Making Finance Work for Africa (MFW4A) has implemented a number of recent initiatives to strengthen the resilience of the African financial sector.

In addition to its webinars series and discussions aimed at identifying the sector's difficulties and solutions, a portal dedicated to domestic and international responses to the impact of COVID-19 on the regional financial sector has been set up.  The exercise consists in monitoring, collecting and classifying by country or region the measures taken by governments, central banks and DFIs in in support of the AFS vis-à-vis the financial impact of the pandemic. 

This page presents measures and initiatives by the Tanzanian government, national central bank and Development Finance Institutions (DFIs) in support of a resilient domestic financial sector facing the effects of the COVID-19 pandemic.

Disclaimer: This page contains information and links from third parties. These links are being provided as a convenience and for informational purposes only; they do not constitute an endorsement or an approval by MFW4A.

Instrument

Institution

Financing volume

Description 

Monetary Policy

Bank of Tanzania

N/A

(May 12, 2020) The Bank of Tanzania (the BoT) has taken steps to introduce policy measures to safeguard the stability of the financial sector.
* The Federal council has lowered the Statutory minimum reserves (SMR) requirement from 7% to 6%;
* In anticipation that banks may require additional funding from the BoT in light of COVID-19, the BoT has reduced the discount rate from 7% to 5%;
* Reduced haircut on government securities from 10% to 5% for treasury bills and from 40% to 20% for treasury bonds;
*Provide regulatory flexibility to banks and other financial institutions that will carry out loan restructuring in a transparent and impartial manner;
* Recommend to mobile money operators to increase daily transaction limit to customers.

Loan rates Tanzania agricultural development bank (TADB) N/A (June 11, 2020) TADB has lowered interest rates on loans given to cooperative societies from 12% to 9% to relieve farmers of loan repayment burden.