DAR ES SALAAM, Dec. 25 -- IN 2026, Tanzanias banking sector is expected to maintain its strong performance, supported by resilient balance sheets, improved asset quality and steady credit growth, clear indicators of macroeconomic stability and a healthy economy.

With audited results for Q1–Q3 of 2025 pointing to consistent Q4 performance, the outlook is reinforced by a stable interest-rate environment and rising economic optimism. These conditions are likely to boost credit demand, driving loan growth of about 18 per cent year on year by end-2026.

From an investment perspective, banks remain well positioned to sustain profitability, as the Bank of Tanzanias policy rate, expected to hold at 5.75 per cent, supports strong net intere...