Banks deposits in Central Zone soar

Dar es Salaam. Central Zone recorded the highest growth in banks deposits during the first quarter of this year compared with the fourth quarter of last year.

The Bank of Tanzania (BoT) consolidated zonal economic report for the first quarter of this year has shown that deposits in the Central Zone grew by 40 per cent to Sh1.5 trillion in March from Sh1.08 trillion recorded during the fourth quarter of last year.

During the first quarter of this year, banks mobilised deposits amounting to Sh18.8 trillion, which was 0.7 per cent higher than Sh18.7 trillion recorded during the fourth quarter of last year.

Analysts say the tremendous growth of banks deposits in central zone was due to the shift of the government offices to the capital city of Dodoma, which has also attracted many banks and financial institutions to open branches.

Nearly all ministries and government departments have shifted to the capital city, which has also attracted the shift of businesses from the commercial city of Dar es Salaam to Dodoma.

However, the central zone accounts for only eight per cent of all total deposits countrywide, the third behind Dar es Salaam with 59.8 per cent and Northern Zone with 17.2 per cent.

The second highest growth was recorded by South Eastern Zone, whose deposits grew by 10 per cent to Sh628.9 billion from Sh571.9 billion.

Northern Zone also recorded positive growth of banks deposits during the period reviewed by 7.4 per cent to Sh3.2 trillion from Sh3 trillion.

Other zones including Dar es Salaam, Lake, Southern Highlands deposits shrank during the period under review.

Deposits in Dar es Salaam fell by four per cent to Sh11.25 trillion from Sh11.72 trillion, Lake Zone by five per cent to Sh1.40 trillion from Sh1.48 trillion and Southern Highlands shrank by 6.5 per cent to Sh776 billion from Sh830 billion.