Tanzania Banking Sector Report – 2024 Analysis Update

Tanzania Banking Sector Market Players

The Tanzanian banking sector embarked on a plan for financial liberalization in the ’90s to sustain the country’s economic growth. This has been accomplished through the mobilization of financial resources as well as by increasing competition in the financial markets and by enhancing the quality and efficiency of credit allocation.

As a result of the liberalization, new merchant banks, commercial banks, bureaus de change, credit bureaus, and other financial institutions have entered the market.

The number of commercial banks increased steadily throughout the 2000s but has since declined in recent years. This decrease is attributed to some banks leaving the market, being acquired, or closing due to issues with meeting capital requirements.

During 2022, BOT issued licenses, revoked licenses, and approved acquisitions aimed at enhancing compliance, efficiency, and performance within the financial sector.

Specifically, BOT approved the acquisition of First National Bank (FNB) Tanzania, a subsidiary of FNB and one of South Africa’s “big four” banks, by Exim Bank Tanzania Limited.

Additionally, BOT changed the banking license of Mwanga Hakika Microfinance Bank from a microfinance institution to a fully-fledged commercial bank, now known as Mwanga Hakika Bank.

In 2023, the Bank of Tanzania (BOT) completed its administration of Yetu Microfinance Bank due to the bank’s failure to meet regulatory requirements regarding liquidity and capital adequacy. Consequently, the assets and liabilities of Yetu Microfinance Bank were transferred to NMB Bank.

During the same year, Letshego Bank in Tanzania successfully concluded the merger of its two entities, Letshego Tanzania Limited (operating as ‘Faidika’) and Letshego Bank Tanzania. This merger resulted in the establishment of a unified entity, now operating under the new brand name, “Letshego Faidika Bank“.

As of March 2024, 47 licensed banks are operating in Tanzania: 34 commercial banks, 4 community banks, 4 microfinance banks, 2 development banks, 1 Non-Bank Financial Institution, 1 House Financing Company, and 1 Mortgage Refinancing Company.

Altogether, in 2022 they had 981 branches and 75,238 bank agents.

Commercial Banks

In 2022, there were 34 commercial banks with 901 branches. In terms of ownership, 11 were locally owned while 23 banks were foreign owned.

Total assets of commercial banks accounted for 97.2% of total assets of banking institutions, whereby locally and foreign-owned commercial banks accounted for 60.5% and 36.7%, respectively.

The 10 largest banks dominated the Tanzanian market in 2022, accounting for 77.4% of total assets, 78.9% of total loans, and 77.9% of total deposits.

CRDB and NMB, Tanzania’s two largest banks by far, maintained their position as frontrunners in the banking sector, collectively representing 46.4%, 49.2%, and 49.0% of total assets, customer deposits, and loans and advances, respectively.

The Top 10 Biggest Commercial Banks in Tanzania by Assets in 2022

1. CRDB with TZS 11.6 trillion (USD 4.9 billion)

2. NMB with TZS TZS 10.2 trillion (USD 4.2 billion)

3. NBC with TZS 2.8 trillion (USD 1.2 billion)

4. Exim with TZS 2.3 trillion (USD 1 billion)

5. DTB with TZS 1.6 trillion (USD 680 million)

6. PBZ with TZS 1.4 trillion (USD 590 million)

7. Stanbic with TZS 1.3 trillion (USD 560 million)

8. StanChart with TZS 1.3 trillion (USD 560 million)

9. Citi Bank with TZS 1.3 trillion (USD 560 million)

10. Absa with TZS TZS 1.1 trillion (USD 460 million)

11. TCB with TZS 1.1 trillion (2021) (USD 460 million)

Microfinance Banks

These are banks licensed to undertake banking business mainly with individuals, groups and micro, and small enterprises in rural or urban areas.

In Tanzania, there are four specialized microfinance banks: Selcom Microfinance Bank (formerly AccessBank), Finca Microfinance Bank, VisionFund Tanzania Microfinance Bank, and Yetu Microfinance Bank which has been taken over by NMB Bank.

In 2022, their total assets accounted for 0.4% of the total assets of banking institutions.

Development Banks

These are banks licensed to mobilize long-term funds to finance medium and long-term development projects.

In Tanzania, there were two, state-owned, development banks: the TIB Development Bank, and the Tanzania Agricultural Development Bank (TADB).

Their total assets accounted for 2.0% of the total assets of all banking institutions.

Community Banks

These are banks licensed to provide banking services in a defined geographical area. As at the end of 2022, there were five locally owned community banks with 11 branches.

In 2022, the total assets of community banks accounted for 0.4% of the total assets of banking institutions.