Financial sector stability, growth impresses government as banks urged to widen access

Arusha. The government has hailed the continued growth and resilience of Tanzania’s financial sector, while calling on banks and financial institutions to expand access to formal banking services for millions of Tanzanians still excluded from the system.

Speaking during the Shareholders Investment Day organised by CRDB Bank Plc at the Arusha International Conference Centre on May 15, Finance Minister Khamis Mussa Omar said the country’s financial sector has continued to record impressive growth driven by reforms, innovation and increasing investor confidence.

He said the government remains committed to building a strong, inclusive and competitive financial sector capable of accelerating economic and social transformation through the National Development Vision 2050, the Financial Sector Development Master Plan and the National Financial Inclusion Framework.

Mr Omar said the value of investments in Tanzania’s capital markets rose by 33.7 percent from Sh47.2 trillion in 2024 to Sh63.1 trillion in 2025 while share and bond trading increased by 91 percent.

“This is a clear indication of growing investor confidence and the increasing ability of the capital markets to mobilise resources for economic development,” Mr Omar said.

He noted that the banking subsector, which accounts for more than 71 percent of all financial sector assets, has continued to expand significantly over the past four years.

Banking sector assets increased from Sh39.3 trillion in 2021 to Sh77 trillion in 2025, while deposits rose from Sh28.5 trillion to Sh53.5 trillion and loans increased from Sh20.8 trillion to Sh46.7 trillion over the same period.

Mr Omar said the ratio of non-performing loans tototal gross loans dropped from 5.8 percent in 2021 to 2.8 percent in 2025, reflecting improved asset quality and growing sector stability.

Despite the progress, he cautioned that access to banking services remains low among Tanzanians.

Citing the 2023 FinScope survey, Mr Omar said only 22 percent of Tanzanians currently use banking services, urging financial institutions to innovate and introduce deliberate measures to reach the remaining 78 percent.

“My call to our banks is to continue innovating and taking deliberate steps to ensure more Tanzanians access formal banking services,” he said.

Mr Omar also underscored the importance of involving young people in capital markets through shares, bonds and collective investment schemes, saying youth remain central to productivity, innovation and technological advancement.

He commended CRDB Bank Plc for its growing contribution to the national economy, noting that the bank currently accounts for nearly 29 percent of all private sector lending in Tanzania.

The minister said CRDB recorded a net profit after tax of Sh725 billion in 2025 and expressed confidence that the bank could soon reach the Sh1 trillion mark in annual profits.

He also praised the bank’s role in promoting innovative financial products, including the Samia Infrastructure Bond, green bonds and Sharia-compliant financial instruments such as Sukuk.

Mr Omar further hailed CRDB’s regional expansion into Burundi and the Democratic Republic of Congo, as well as plans to enter the Kenyan and Zambian markets, describing the move as an important milestone in positioning Tanzania within the international financial landscape.

He also urged banks to protect minority shareholders and address public concerns over lending rates and transaction charges.

“President Samia Suluhu Hassan has directed that our services should leave Tanzanians smiling,” he said.

Earlier, the chairperson of the board of CRDB Bank Plc, Prof Neema Mori, said the number of investors in the bank had increased from 30,000 in 2021 to 89,000 currently, with the majority being young people.

She said the bank would continue strengthening corporate governance, investing in technology, expanding financial inclusion initiatives and creating more value for shareholders.

Meanwhile, Denmark’s ambassador to Tanzania, Jesper Kammersgaard, said cooperation between Denmark, through Danida, and CRDB dates back to the mid-1990s and has played a key role in strengthening the institution’s capacity.

He said Denmark would continue supporting CRDB to ensure the bank remains resilient and sustainable as millions of Tanzanians increasingly depend on banking systems in their daily lives.

Mr Kammersgaard also commended CRDB for successfully migrating to a new core banking system, describing the move as a sign of institutional maturity and long-term commitment to customer service improvement.