Diplomatist Special Report - Tanzania Tanzania 2018 - Page 41

and regulatory framework to allow for competition in the delivery of fi nancial services. The Tanzanian government has been promoting the expansion of the banking system through the Second Generation Financial Sector Programme and allowed more private banking and microfi nance institutions to enter the market. Tanzania has emerged as a regional leader in its push to provide a conducive environment for fi nancial inclusion by allowing non-banking institutions to provide fi nancial services. As a result of the liberalisation, the banking sector in Tanzania has been booming, particularly over the last few years. New merchant banks, commercial banks, bureau de change, insurance companies, a stock exchange and related fi nancial units have entered the market. The Capital Market and Security Act, 1997 led to the establishment of the Dar es Salaam Stock Exchange as another alternative for raising capital. It is small, with total market capitalisation at 20 percent of GDP. According to the National Board of Statistics (NBS) of Tanzania, the fi nancial services sector grew by 6.6 percent in Q3 of 2015 compared to 9.4 percent in Q3 of 2014. Lending increased from TZS 11.7 trillion in 2014 to TZS 14.3 trillion in 2015. According to the state-run National Bureau of Statistics (NBS), growth is projected to remain robust at 6.7 percent in 2018 and 6.9 percent in 2019, representing one of the best performances in East Africa. *Author is the Consulting Editor at Diplomatist Magazine TANZANIA• 41