The Tanzanian banking segment remained resilient last year amid the outbreak of Covid-19 pandemic as it fared well compared to other segments. The country has about 50 banks with approximately 840 branches including 23,500 agents. Furthermore, NMB Bank has been the top performer in the banking segment.
It is reported that the robust performance during the pandemic indicates the bank’s efforts and plans for growth. The bank has focused on income growth, enhancing operational efficiency through technology to balance cost and customer experience.
The country’s central bank, BoT, has imposed stringent measures and regulation to weather the pandemic situation. BoT has reduced its statutory minimum reserve requirement and reduced the discount rate. It also allowed banks to lend from it with less collateral than before. Furthermore, NMB Bank has generated record profits which is considered the highest profit in the history of the banking sector in Tanzania.
NMB Bank, chief executive officer, Ms Ruth Zaipuna, told the media, “The year (2020), despite the global uncertainties in the wake of a global pandemic, we delivered a record-setting performance with strong stakeholder support, operational excellence, and solid strategy execution. The market at large also benefited from the unprecedented monetary and fiscal support by the Central Bank and the government. This in turn led to our profits reaching all-time high.”
Tanzania, as an economy, needs serious development in terms of infrastructure, healthcare facilities and others. However, the banking sector’s record performance is impressive.