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Central Bank sets 80 pc financial inclusion target

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THE Bank of Tanzania (BoT) has set new targets of achieving usage of formal financial services under the National Financial Inclusion Framework (NFIF 2014/17) of having 80 per cent of adult population using a financial access point.

The Monetary Statement of the first half of the 2015/16 fiscal year also shows that BoT is targeting to have at least 70 per cent of the population living within five kilometres of a financial access point by 2017.

The new development follows the country’s outstanding performance in the usage of formal financial services among the un-banked population that surpassed its initial target by 50 per cent of adult population in 2014.

According to the BoT report, the increase in access and usage of formal financial services has been driven mostly by innovation and technology in the financial sector, particularly the use of mobile phones for accessing financial services.

The digital technology has made Tanzania one of the global hot spots of innovative financial services. By the end of December 2015, the number of registered active users of mobile phone financial services was 19 million.

Similarly, the other driving force was the enhancement of legal and regulatory framework for the National Payment Systems achieved with the National Payment Systems Act 2015 that became operational in October 2015.

Subsequently, two regulations were operationalized, namely, the Licensing and Approval Regulations 2015 and the Electronic Money Issuance Regulations 2015.

Furthermore, the Bank has embarked on awareness initiatives to ensure that the stakeholders are complying with the new requirements by the end of April 2016.

The other major development reached was for the Bank embarking on modernization initiatives of High Value Payment Systems (TISS) and improvements on retail payment infrastructures and services.

The Bank is also in the process of operationalizing new NPS regulatory framework following the enactment of the NPS Act 2015 and subsequent Regulations on Electronic Money Issuance regulations (2015) and NPS Licensing and Approval regulations (2015).

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Posted by on February 17, 2016 in Business News, Tanzania News

 

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Tanzania Government to borrow for productive ventures‏

The government will continue borrowing abroad for productive investment, senior central bank official said.

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Bank of Tanzania Director of Research and Policy, Dr Joseph Masawe, said talks were currently going on with banks on a syndicated loan of between $500 million and $800 million, with proceeds earmarked to finance development projects.

“The government is in talks with various institutions, but that is being done very cautiously,” he said.

He said the country’s total debt now stood at the equivalent of about 39 percent of gross domestic product (GDP), a

figure that takes into account the maturity profile of the debt.

Based on those debt levels, he said, there was still “a lot of headroom” for borrowing for productive investment.

He also said that Tanzania still intended to issue its first Eurobond but that it would not do so “at any cost”, noting that the cost of such borrowing had climbed.

Several African nations have sold debut Eurobonds in the past the two years or so, including neighbouring Kenya and Rwanda, but turmoil on global markets has driven up yields on such issues, discouraging some other new

sovereign borrowers.

Tanzania had in the past said it would seek to issue the Eurobond in financial year 2015/16, which started on July 1.

Dr Masawe said that the government was now in discussion with banks to raise $500 million to $800 million

via a syndicated loan for this financial year.

“All these resources will be for investment in development projects, including infrastructure,” he said.

“We intend also to go for a Eurobond. Definitely we will look at price, because it is not money at any cost,” added Dr Masawe. “Tanzania intends to issue a Eurobond when the prices are favorable.”

He said Tanzania’s likely cost of borrowing in the Eurobond market had risen in recent months from 6-7 percent

to 9 percent.

Dr Masawe said it would take about 12 months before Tanzania had secured a credit rating, so the east African

country could be ready to issue a Eurobond by late 2016, assuming the pricing was right then.

 
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Posted by on September 25, 2015 in Tanzania News

 

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Central Bank keen on Liquidity Control

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THE Bank of Tanzania (BoT) is to use dual policies to control liquidity in the economy until money markets satisfactorily support interest rate targeting.
Source: Daily News

BoT said since capital and security markets are yet to be fully exploited, introduction of the interest targeting policy would not work effectively.

The central bank chief, Prof Benno Ndulu, told the ‘Daily News’ that the policy change would not be effective as desired, leading to the use of both reserve money and interest rate targeting at the initial stage.

“The old policy will be phased out gradually after the market adopts the new policy,” Prof Ndulu said. He said promotion of the new policy was underway and upon its completion it would be introduced to the market.

“The current policy rate is 12 per cent,” the governor said, but the rate is not regarded as the market benchmark since the policy used to control money does not use interest rate rather other instruments – like Treasury Bills (TBs).

According to International Monetary Fund (IMF), the central bank is collaborating and seeking the assistance from the East Africa Technical Assistance Centre (AFRITAC).

AFRITAC is a collaborative venture between the IMF, recipient countries, bilateral and multilateral donors for technical assistance mainly on capacity building.

BoT said the central bank rates would be computed based on TBs, liquidity stance and other market rates under supervision of the Monetary Policy Committee which will issue the interest rate after a space of time.

Looking ahead, IMF said, the BoT is also in the process of developing a web based questionnaire for evaluating business conditions and inflation expectations and develop indices of leading economic indicators in order to further strengthen its monetary policy framework.

The central bank has it that increasing economic activities that expanded the money markets to bring sophisticated financial systems have obliged the central bank to shift curbing liquidity goal posts.

These changes, according to BoT, brought in new challenges which mostly are positive – like developing further the capital and securities markets.

The challenges including developing money markets such as Debt Market, Dar es Stock Exchange and Foreign Exchange Market that normally fluctuate in either direction on central bank interest rates.

 
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Posted by on March 19, 2013 in Tanzania News

 

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BoT chief: Shilling remains relatively stable

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Prof Ndulu

The Tanzania shilling has been the most stable currency in the Eastern African region, but since the beginning of this year, it fails to hold against the US dollar and currencies of the country’s other major trading partners.

The shilling currently trades at 1,620/- for the greenback, up from last year’s average of 1,580/-. Staff Writer ABDUEL ELINAZA had an interview with the Central Bank Governor, BENNO NDULU, on the issue. Excerpts…

QUESTION: Why is the shilling sliding down against the US dollar to reach 1,620/- by mid-last month?

ANSWER: The movement of the shilling to the US dollar to exchange at 1,620/- is the outcome of normal market forces as opposed to failure of country’s monetary policy. For the past 14 months, since December 2011, the exchange rate of the shilling against the US dollar has remained stable in comparison to the depreciation for the previous year and in comparison with many currencies including those of our major trading partners.

The annual depreciation of the shilling against the US dollar at the end of January 2013, was only one per cent. In the 12 months to December 2011, the shilling had depreciated by nearly 15 per cent, but the measures we took have considerably slowed down the rate of depreciation.

Q: Has the tight monetary policies failed?

A: No. Not at all. Actually, the data shows that while Tanzania Shilling depreciated by 1 per cent in the 12 months ending January 2013, the Kenyan shilling depreciated by 4.6 per cent and the Ugandan shilling by 11.7 per cent. At the same time the exchange rate of the South African Rand against the US dollar depreciated by 11.8 per cent, while that of Indian Rupee depreciated by 6.8 per cent and that of Japanese yen by 18.6 per cent during the same period. There has been significant increase in the demand for the dollar among non-typical users.

Typically we pay for power generation in shillings. Currently the Independent Power Producers (IPPs) — other than TANESCO are mostly paid in foreign exchange — since they have to meet their obligations in foreign currency. The weekly demand for US dollars by TANESCO to purchase power from the IPPs and to pay for their fuel import bill is substantial and at present in excess of four million US dollars, putting additional pressure on the amount spent on importing expensive fuel for transportation and industrial use.

The annual bill for importing expensive oil still stands at more than 3,300 million US dollars a year. Furthermore, foreign contractors building roads and other infrastructure projects funded by domestic revenue have to be paid and they typically externalise their revenues adding to the demand pressure for foreign exchange.

Q: Tanzania is now taking the IMF Standby Credit Facility loan of about 117 million US dollars. Is this because we have failed to boost exports and thus the foreign exchange inflow?

A: The decision by Tanzania to take the IMF’s Standby Credit Facility of about 117 million US dollars is not unusual. This decision is based on our assessment of the balance of payment needs, external debt sustainability position and concessionality of the loan. Tanzania has been borrowing from external concessional sources such as the World Bank and the African Development Bank to finance various development projects and programmes in order to boost economic growth and expedite poverty reduction.

It has also borrowed from the IMF from time to time for balance of payments purposes. In its endeavour to expedite implementation of development projects, including transport infrastructure, power generation and the gas pipeline, the government has decided to borrow from nonconcessional sources.

This decision has been taken with careful consideration of the country’s debt sustainability status. In 2011, the government borrowed 221.8 million US dollars for power generation. In 2012, some 213.5 million US dollars was borrowed for construction of the gas pipeline.

Source: The Daily News, http://www.dailynews.co.tz

 

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GROWING HOUSING OPPORTUNITIES IN AFRICA CONFERENCE 8TH – 10TH OCTOBER, 2012

 

via GROWING HOUSING OPPORTUNITIES IN AFRICA CONFERENCE 8TH – 10TH OCTOBER, 2012.

 
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Posted by on August 25, 2012 in General Knowledge

 

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Investors rush for 10-year treasury bonds‏

Daily News

THE 10-year bond by the Bank of Tanzania (BoT) was oversubscribed by 19.49bn/-, an equivalent of 65 per cent.

According to the results of the tender floated last week, despite the  oversubscription, the central bank accepted only 30bn/- sought to be  mobilised after bidders demanded for high prices.

“The highest  and lowest bids were valued at 84.10 and 70.06, respectively while the  average price for successful bids was 81.56,” stated the report. The  continued oversubscription testifies to stability of the liquidity  stance in the market.

The BoT interventions to either ease or  tight liquidity stance in the market is done cautiously without  disturbing interest rates of the money instruments.

In the  10-year tender, only 24 out of 31 bids received emerged successful, an  indication that some investors tendered below the price offered at the  market.

In the preceding auction deal, the government accepted  more funds and concentrated on bond issuance to finance its development  expenditures.

In the meantime, interest rates was 15.06 per cent  lower than the rates offered in the previous 10-year deal, it did not  prevent investors from injecting massive funds.

Furthermore  according to the central bank’s monthly economic review for the year  ending June 2012, auctioned Treasury bonds worth 30bn/- and 15bn/- of  2-year and 10-year maturities, respectively.

The auctions were  oversubscribed and dominated by commercial banks, pension funds,  insurance and few micro-finance institutions firms which are among the  key players in the long term fixed instruments.

The BoT accepted bids amounting to 20bn/- and 15bn/ for the 2-year and 10-year Treasury bond, respectively.

The weighted average yields for the treasury bonds increased when compared to the rates recorded in the preceding auctions.

 

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GROWING HOUSING OPPORTUNITIES IN AFRICA CONFERENCE 8TH – 10TH OCTOBER, 2012

GROWING HOUSING OPPORTUNITIES IN AFRICA CONFERENCE  8TH – 10TH OCTOBER, 2012

SOURCE: Bank of Tanzania


ABOUT THE CONFERENCE
1.Registration

Delegates of this conference are required to pay registration fee of US $300 or TZS 450,000 and register by downloading the Conference Registration Form, fill and email it to the Conference Secretariat conf@bot.go.tz. Alternatively, the filled form may be faxed to +255 22 2234053, attention: Valentine Buberwa.
For future reference, you may wish to save the filled form before sending it. Nevertheless, feel free to contact the following individuals for enquiries:

1.Mrs. Valentine Buberwa Tel: +255 22 223 3424 e-mail: vkbuberwa@hq.bot-tz.org
2.Ms Zawadi Mwitula Te: +255 22 223 3435 e-mail: zemwitula@hq.bot-tz.org
3.Ms. Deborah Wapalila Tel: +255 22 223 5195 e-mail: dewapalila@hq.bot-tz.org
4.Mr. Baraka Munisi Tel: +255 22 223 5324 e-mail: bdmunisi@hq.bot-tz.org
5.Mr. Oscar Mugaya e-mail:  info@tmrc.co.tz
Registration deadline is ……15 September, 2012……………………………..
2.The Conference Venue

The conference will be held at the Bank of Tanzania headquarters in Dar es Salaam, Tanzania.
3.Delegates Accommodation

Delegates are advised to make their own accommodation arrangements and inform the conference secretary (conf@bot.go.tz) For Hotel information. (click here).
4.Travel Information

Visa for Tanzania. Where possible, Delegates are strongly advised to obtain visa from their resident countries to facilitate their travel arrangements.

5.Conference Agenda

To view confrerence schedule and Agenda (click here)
For More Information about Payment Methods, Tanzanian Embassies, Diplomatic missions, Immunization Requirements, Currencies, Transports, Time Zone, Power Ratings, Climates, Tourist Attractions, please! Download the document below:-
GROWING HOUSING OPPORTUNITIES IN AFRICA CONFERENCE  8TH – 10TH OCTOBER, 2012 INFORMATION

REGISTRATION FORMS
 
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Posted by on August 16, 2012 in General Knowledge, Tanzania News

 

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