Whether true or not, clearly that inflation in your beloved Tz is not benefitting anyone as populations continue to wallow in poverty, Tzs inflation has always been lower than Kenya's over the past decade yet on average Kenyans consume more commodities than Tanzanians even on basic stuff like cooking oil, soap, rice, maize,.... So maybe your beloved Tanzanians can't even afford stuff at the cheapest rate....
This is a summary of IMF review of Tanzania's financial sector performance, mind you Tanzania has no rate cap law that negatively affect credit growth of citizens like in Kenya and yet they perform worse! Don't also forget rha despite the fact that Kenya has more govt debt than Tz, almost 80% of domestic loans in Tz go to GoT compared to Kenya which is about 65%, leaving nothing to regular Tanzanians.
And speaking of debt, IMF had also predicted that Kenya's fiscal deficit would continue to widen because of low revenue collection forcing us to take more loans and also use what we have to pay more debts, IMF was surprised to see the fiscal deficit narrow after a few austerity measures that did not hinder economic performance .... IMF got schooled this time!
Here is the summary of IMF review of Tz published 4 Dec 2018. Credit growth continues to fall precipitously!!!!!
Tanzania’s bank-dominated financial sector is small, concentrated, and at a relatively nascent stage of development. Financial services provision is dominated by commercial banks, with the ten largest institutions being preeminent in terms of mobilizing savings and intermediating credit. Medium-to-small banks rely systematically more on costlier, short-term, interbank financing and institutional deposits and have markedly higher operating costs. These structural features underpin financial stability challenges which are significant. Bank asset quality has deteriorated sharply in recent years, and under-provisioning is significant, belying the apparently comfortable capital cushions. Credit growth has fallen precipitously, corporate debt loads have risen, and their cash flows are weak. Dollarization of bank balance-sheets raises the possibility of solvency stress under shocks being exacerbated by funding liquidity pressures, especially at smaller banks.
United Republic of Tanzania : Financial Sector Assessment Program-Press Release; Staff Report; and Statement by the Executive Director for the United Republic of Tanzania
Honest to god, after reading that I am convinced Tanzania's nacent financial sector is about to collapse as most banks look like they'l go broke in the comming years... This is what IMF is insinuating..
