DAR ES SALAAM: THE Bank of Tanzania (BoT) is prioritising price stability, financial sector resilience and digital financial inclusion in its five-year strategy as it supports the country’s Vision 2050 economic transformation agenda.
BoT economist Ladislaus Silydion said the central bank designs its strategic plans to support national development priorities rather than operate independently, with a focus on maintaining macroeconomic stability and strengthening the financial system.
“The Bank ensures its strategic objectives are fully aligned with the country’s broader development agenda,” Silydion told the ‘Daily News’ yesterday in Dar es Salaam.
He added: “At the core of the strategy is maintaining inflation in single digits, stabilising the shilling and ensuring a sound financial system capable of supporting sustainable growth.” He said BoT plans to strengthen monetary policy implementation, liquidity management and financial market surveillance to reinforce price stability and investor confidence.
The central bank is also backing government efforts to reduce the use of foreign currencies in domestic transactions while expanding gold reserves to strengthen foreign exchange buffers and improve external sector resilience.
According to Silydion, stronger reserves are expected to support foreign currency availability and facilitate export growth, particularly in value-added industries, through a more predictable monetary policy environment.
Beyond monetary policy, the strategy focuses on strengthening financial sector oversight, including improved risk management frameworks, tighter supervision of non-performing loans, enhanced cyber security and stronger anti-money laundering systems.
ALSO READ: Border taxes deliver one third revenue
“Financial inclusion is another key pillar, with BoT planning to expand digital payment systems, reduce reliance on cash transactions, strengthen credit information infrastructure and widen access to national identification-linked financial services, ” Mr Silyodion said.
The economist also said the strategy integrates Environmental, Social and Governance (ESG) priorities, including financing for renewable energy, climate-resilient infrastructure and investment in domestic innovation and human capital development. He said the central bank’s plan complements the government’s forthcoming Fourth FiveYear Development Plan, which targets stronger economic growth and higher per capita income by 2030.
“The BoT’s role is to provide the macroeconomic stability needed to achieve national ambitions. Without price stability, sustained growth becomes difficult,” he said. He added: “financial inclusion also ensures that more people can participate in the economy.” The strategy positions BoT as a key anchor institution in Tanzania’s transition toward a more inclusive, stable and sustainable economy under Vision 2050.