Tanzania: Bank of Tanzania plans to increase money supply growth

The MINISTRY of Finance and Planning plans to spend 14.94 tri/- on development and recurrent expenditure in the financial year 2022/23 as the government has identified key priorities to be implemented by the ministry, among which institutional capacity building of all departments and institutions under the ministry.

Tabling the ministry’s budget in the Upper House on Tuesday, Minister of Finance and Planning Dr. Mwigulu Nchemba said that in the next financial year, the Bank of Tanzania (BoT) plans to increase the growth of the money supply, to ease monetary policy and to ensure that there is expanded broad money supply (M3) to meet the demands of economic growth.

According to him, the ministry plans to collect 1.05 tri/- in returns from various sources including dividends, withholding taxes, loan repayments, contributions from public entities and sales of brokerage licenses.

As part of efforts to alleviate the shortage of sugar and edible oil in the country, Dr Nchemba said, in the financial year 2022/23, the Tanzania Agricultural Development Bank (TADB) plans to grant 78 billion in loans to the industrial sector, in particular sugar and oil. industries in Kigoma, Shinyanga and Manyara regions.

“The bank also plans to provide loans amounting to 130 billion/- for the purchase of cotton and coffee,” the minister said.

The Tanzania Investment Bank (TIB), according to the Minister of Finance and Planning, plans in the next financial year to provide loans in the amount of 47 billion / – in the sectors of energy, water, industry, minerals, water, fuel and gas as well as tourist services. .

The Tanzania Commercial Bank (TCB), according to Dr. Nchemba, plans among other things to provide secured loans in the amount of 709 billion / – On insurance, said the minister in the next financial year, the Tanzania Insurance Regulatory Authority (TIRA) which falls under the Ministry plans to carry out inspections on 30 insurance companies, 278 agents from different banks as well as provide insurance training to about 1.5 million people across the country.

The UTT Asset Management and Investor Service (UTT AMIS) in 2022/23 plans, among other things, to increase funding resources by 15%, to increase the number of investors by 5%, as well as to intensify the campaign of sensitization with government institutions, pension funds and SACCOS to register for UTT AMIS.

“In addition, the SELF Microfinance Fund is expected to provide concessional loans totaling 43.5 billion/- to approximately 28,255 entrepreneurs, ensure that loan repayment increases by 95% and provide training to 4,000 groups of entrepreneurs. “, he added.

During the 2022/23 financial year, the Public Procurement Regulatory Authority (PPRA) plans to construct its offices at the country headquarters in Dodoma, as well as an area office in Dar es Salaam, as well as dispense training 940 employees from 170 different supply entities. . The chamber approved the ministry’s budget.

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