Banks witness deposit growth in Tanzania
Tanzanian banks have witnessed an increase in deposits over the past two years, according to the Tanzania Banking Survey 2012.Tanzanian banks have witnessed an increase in deposits over the past two years, according to the Tanzania Banking Survey 2012.
Overall, customer deposits in the banking system increased by about 2.2trn (€1 billion) in 2011, representing a 17 per cent jump in one year, Tanzania Daily News reports.
Small and new mid-sized banks have taken the lead in deposit growth as measured by percentage increase. Deposits at Njombe Community Bank recorded a deposit increase of 853 per cent, while Ecobank Tanzania and Access Bank Tanzania rose 188 per cent and 107 per cent, respectively.
Tanzania Securities CEO Moremi Marwa told the 'Daily News' on Monday (January 21st) that banks now have money to invest and enough liquidity to grant loans to businesses.
This increase is partly due to efforts from the Tanzanian government and development partners to improve access to finance in the African nation.
In 2010, the World Bank agreed to provide $171 million (€128 million) of credit for the country's MKUKUTA national development strategy.
John Murray McIntire, the World Bank Country Director for Tanzania, said the funds had been allocated to boost access to finance and maintain poverty reduction measures.