Interest Rate Landscape — March 2026
Overall rate structure, stability signals, and transmission dynamics
Rate Stability Amid Global Uncertainty March 2026
Tanzania's bank interest rates remained largely unchanged month-on-month in March 2026, despite the challenging global environment arising from the escalation of geopolitical conflicts in the Middle East.
The overall lending rate held steady at 15.11 percent, identical to February 2026, while negotiated lending rates for prime customers remained around 12 percent. The stability in lending rates suggests limited immediate transmission of the Bank of Tanzania's monetary policy changes to retail credit conditions — a common phenomenon in emerging market banking systems where institutional and competitive frictions slow the pass-through of policy rate adjustments.
Lending Interest Rates
Overall, negotiated, and term-specific lending rate breakdown — March 2025 to March 2026
Lending Rate Trend Mar 2025 – Mar 2026
Overall lending rate has edged downward over 12 months from 15.50% to 15.11%, while negotiated rates for prime clients show a more pronounced decline from 12.94% to 12.21%.
Source: Bank of Tanzania, Table A4 Interest Rates Structure, 2025–2026.
Lending Rates by Term Structure Full Historical Data
Comprehensive breakdown of lending rates across all maturities, demonstrating the yield curve shape within bank lending portfolios.
| Rate Category | Mar-25 | Apr-25 | Jul-25 | Sep-25 | Nov-25 | Dec-25 | Jan-26 | Feb-26 | Mar-26 | 12M Chg |
|---|---|---|---|---|---|---|---|---|---|---|
| Overall Lending Rate | 15.50% | 15.16% | 15.16% | 15.18% | 15.27% | 15.24% | 15.10% | 15.11% | 15.11% | ▼ 39 bps |
| Short-Term (≤ 1 year) | 15.83% | 16.15% | 15.51% | 15.52% | 15.53% | 15.46% | 15.49% | 15.41% | 15.45% | ▼ 38 bps |
| Medium-Term (1–2 years) | 16.56% | 16.33% | 16.41% | 16.26% | 16.42% | 16.42% | 16.73% | 16.70% | 16.53% | ▼ 3 bps |
| Medium-Term (2–3 years) | 16.44% | 15.25% | 15.22% | 15.19% | 15.18% | 15.43% | 14.97% | 15.27% | 15.31% | ▼ 113 bps |
| Long-Term (3–5 years) | 14.32% | 13.88% | 14.39% | 14.26% | 14.43% | 14.29% | 14.05% | 13.95% | 13.95% | ▼ 37 bps |
| Term Loans (> 5 years) | 14.36% | 14.19% | 14.28% | 14.66% | 14.79% | 14.61% | 14.24% | 14.20% | 14.30% | ▼ 6 bps |
| Negotiated Rate (Prime) | 12.94% | 12.88% | 12.56% | 12.84% | 12.61% | 12.38% | 12.25% | 12.19% | 12.21% | ▼ 73 bps |
Source: Bank of Tanzania, Table A4 Interest Rates Structure.
Lending Rate by Maturity Bracket March 2026 Snapshot
Visualising the shape of Tanzania's lending rate curve — from short to ultra-long tenors — showing the inverted medium-term premium.
Scale based on max 18%. Source: BOT Table A4, March 2026.
Foreign Currency Lending Rates USD-Denominated
Banks also offer foreign currency lending, typically at rates linked to international benchmarks plus a country risk premium.
| Maturity Bracket | Mar-25 | Jul-25 | Sep-25 | Dec-25 | Feb-26 | Mar-26 |
|---|---|---|---|---|---|---|
| Overall USD Lending Rate | 8.93% | 8.82% | 8.43% | 8.61% | 8.61% | 8.70% |
| Short-Term (≤ 1 year) | 9.99% | 9.91% | 9.89% | 9.91% | 10.00% | 10.00% |
| Medium-Term (1–2 years) | 7.94% | 8.23% | 7.49% | 7.68% | 7.72% | 7.69% |
| Medium-Term (2–3 years) | 8.28% | 7.03% | 7.25% | 8.31% | 8.23% | 8.19% |
| Long-Term (3–5 years) | 8.61% | 9.42% | 9.16% | 8.50% | 8.83% | 9.09% |
| Term Loans (> 5 years) | 9.83% | 9.52% | 8.35% | 8.66% | 8.28% | 8.50% |
Source: Bank of Tanzania, Table A4 — Section B: Foreign Currency Rates.
Deposit Interest Rates
Savings, time deposits, and negotiated deposit rates — structure and trends
Time Deposit Rates by Tenor Full Structure
Tanzania's time deposit market offers a range of tenors. The 6-month and 12-month rates are most widely offered, while negotiated large-value deposits command substantially higher returns.
| Deposit Product | Mar-25 | Apr-25 | Jul-25 | Sep-25 | Nov-25 | Dec-25 | Jan-26 | Feb-26 | Mar-26 | 12M Change |
|---|---|---|---|---|---|---|---|---|---|---|
| Savings Deposit Rate | 2.86% | 2.89% | 2.90% | 2.92% | 2.88% | 3.02% | 2.94% | 2.98% | 2.89% | ▲ 3 bps |
| 1-Month Time Deposit | 9.88% | 7.94% | 11.50% | 9.65% | 9.31% | 9.35% | 8.96% | 9.10% | 8.65% | ▼ 123 bps |
| 2-Month Time Deposit | 8.81% | 8.78% | 10.75% | 9.28% | 9.67% | 9.34% | 9.56% | 9.16% | 9.34% | ▲ 53 bps |
| 3-Month Time Deposit | 9.42% | 9.43% | 10.19% | 9.61% | 9.42% | 9.70% | 9.43% | 9.03% | 9.56% | ▲ 14 bps |
| 6-Month Time Deposit | 9.68% | 9.36% | 10.28% | 10.12% | 10.01% | 9.96% | 10.20% | 10.26% | 10.51% | ▲ 83 bps |
| 12-Month Time Deposit ★ | 8.14% | 9.27% | 9.88% | 9.84% | 10.02% | 9.58% | 9.70% | 9.82% | 9.60% | ▲ 146 bps |
| 24-Month Time Deposit | 6.90% | 6.66% | 5.99% | 7.63% | 7.92% | 7.21% | 7.11% | 7.35% | 7.03% | ▲ 13 bps |
| Overall Time Deposit Rate | 8.00% | 7.82% | 8.83% | 8.50% | 8.54% | 8.36% | 8.33% | 8.32% | 8.33% | ▲ 33 bps |
| Negotiated Deposit Rate | 10.35% | 10.52% | 10.72% | 11.05% | 11.67% | 11.66% | 11.74% | 11.48% | 11.57% | ▲ 122 bps |
Source: Bank of Tanzania, Table A4 Interest Rates Structure, 2025–2026.
Key Deposit Rates Trend Mar 2025 – Mar 2026
Tracking the divergence between savings rates (low, sticky) and negotiated/time deposit rates (rising), revealing the growing gap in returns available to different depositor categories.
Source: Bank of Tanzania, Table A4.
Foreign Currency Deposit Rates USD-Denominated
USD deposit rates reflect international money market conditions plus a country-specific liquidity premium.
| Product | Mar-25 | Jul-25 | Sep-25 | Dec-25 | Feb-26 | Mar-26 |
|---|---|---|---|---|---|---|
| USD Savings Deposit | 0.77% | 0.83% | 0.98% | 0.87% | 0.70% | 1.22% |
| 1-Month USD Deposit | 3.01% | 2.50% | 2.46% | 2.45% | 2.45% | 2.47% |
| 3-Month USD Deposit | 2.23% | 4.31% | 2.56% | 4.92% | 4.94% | 4.69% |
| 6-Month USD Deposit | 3.81% | 4.94% | 5.10% | 4.82% | 4.80% | 4.97% |
| 12-Month USD Deposit | 3.50% | 4.00% | 4.61% | 3.19% | 4.43% | 4.35% |
Source: Bank of Tanzania, Table A4 — Section B: Foreign Currency Rates.
Interest Rate Spread
The gap between lending and deposit rates — implications for bank profitability and financial inclusion
Short-Term Interest Rate Spread Widening in Mar 2026
The short-term interest rate spread — defined as the difference between the short-term lending rate and the negotiated deposit rate — widened to 5.85 percentage points in March 2026, from 5.59 percentage points in February 2026.
| Metric | Mar-25 | Apr-25 | Jul-25 | Sep-25 | Nov-25 | Dec-25 | Jan-26 | Feb-26 | Mar-26 |
|---|---|---|---|---|---|---|---|---|---|
| Short-Term Lending Rate | 15.83% | 16.15% | 15.51% | 15.52% | 15.53% | 15.46% | 15.49% | 15.41% | 15.45% |
| Negotiated Deposit Rate | 10.35% | 10.52% | 10.72% | 11.05% | 11.67% | 11.66% | 11.74% | 11.48% | 11.57% |
| Overall Lending Rate | 15.50% | 15.16% | 15.16% | 15.18% | 15.27% | 15.24% | 15.10% | 15.11% | 15.11% |
| Overall Time Deposit Rate | 8.00% | 7.82% | 8.83% | 8.50% | 8.54% | 8.36% | 8.33% | 8.32% | 8.33% |
| Overall Lending–Deposit Spread | 7.50pp | 7.34pp | 6.33pp | 6.68pp | 6.73pp | 6.88pp | 6.77pp | 6.79pp | 6.78pp |
| Short-Term Interest Spread | 7.69pp | 6.88pp | 5.00pp | 4.47pp | 3.86pp | 5.88pp | 5.79pp | 5.59pp | 5.85pp |
Source: Bank of Tanzania, Table A4. ST Spread = Short-term lending minus negotiated deposit rate.
Source: Bank of Tanzania, Table A4. Short-Term Spread = Short-term lending rate minus negotiated deposit rate.
Credit Growth by Economic Sector
Where bank credit is flowing — sector-by-sector annual growth rates to March 2026
Annual Credit Growth by Sector Mar-26 vs Mar-25
Private sector credit grew by 24.1% in the year ending March 2026. Credit growth was broad-based but highly uneven across sectors, with mining and quarrying leading at 78.4%, driven by government initiatives to improve artisanal and small-scale miner financing.
Scale: 0–100%. Source: Bank of Tanzania Section 2.3, Table 2.3.2. March 2026 annual growth rates.
| Sector | Mar-25 | Apr-25 | Dec-25 | Jan-26 | Feb-26 | Mar-26 | Trend |
|---|---|---|---|---|---|---|---|
| ⛏️ Mining & Quarrying | -24.8% | -10.5% | 91.1% | 91.4% | 103.9% | 78.4% | ⬆ Turnaround |
| 🛒 Trade | 12.7% | 14.4% | 49.7% | 50.0% | 48.7% | 43.3% | ▲ Expanding |
| 🚛 Transport & Comms | 22.4% | 23.8% | 29.4% | 34.2% | 39.4% | 39.5% | ▲ Accelerating |
| 🌾 Agriculture | 36.3% | 29.8% | 28.9% | 27.9% | 31.9% | 28.5% | ◆ Stable growth |
| 🏗️ Building & Construction | 35.1% | 39.2% | 25.6% | 29.5% | 28.1% | 21.8% | ▼ Moderating |
| 👤 Personal Loans | 9.4% | 14.7% | 17.7% | 17.8% | 18.9% | 20.7% | ▲ Accelerating |
| 🏨 Hotels & Restaurants | 5.4% | 7.0% | 2.5% | 1.6% | 5.2% | 4.4% | ▼ Slowing |
| 🏭 Manufacturing | 10.9% | 7.7% | -8.2% | -7.7% | -8.5% | -4.9% | ⚠ Contracting |
Source: Bank of Tanzania, Table 2.3.2 Annual Growth of Credit to Select Economic Activities.
Credit Portfolio Share by Sector March 2026
Personal loans continue to dominate the credit portfolio at 35.3% of total private sector credit, followed by trade (14.6%) and agriculture (13.4%).
| Sector | Mar-25 | Jun-25 | Sep-25 | Dec-25 | Jan-26 | Feb-26 | Mar-26 |
|---|---|---|---|---|---|---|---|
| Personal Loans | 36.4% | 36.0% | 36.4% | 35.8% | 35.8% | 35.6% | 35.3% |
| Trade | 12.7% | 14.2% | 13.2% | 15.3% | 14.9% | 14.7% | 14.6% |
| Agriculture | 13.0% | 13.2% | 12.9% | 13.0% | 13.2% | 13.1% | 13.4% |
| Building & Construction | 9.7% | 8.6% | 8.3% | 7.2% | 7.3% | 7.2% | 7.4% |
| Manufacturing | 4.9% | 4.4% | 4.5% | 4.5% | 4.8% | 4.9% | 5.0% |
| Transport & Communication | 4.5% | 4.4% | 4.6% | 4.5% | 4.7% | 4.7% | 4.8% |
| Hotels & Restaurants | 4.1% | 5.2% | 4.8% | 4.4% | 4.5% | 4.3% | 4.4% |
Source: Bank of Tanzania, Chart 2.3.6 Share of Credit to Select Economic Activities.
TICGL Summary: Tanzania Rate Environment
Complete rate structure at a glance — March 2026
Complete Interest Rate Structure — March 2026 Quick Reference
All key interest rates across monetary policy, lending, deposit, and government securities markets as at March 2026.
| Rate Category | Description | Mar-25 | Mar-26 | 12M Change |
|---|---|---|---|---|
| Policy & Reference Rates | ||||
| Central Bank Rate (CBR) | MPC policy signal rate | 6.00% | 5.75% | ▼ 25 bps |
| Lombard Rate | Overnight facility ceiling | 8.00% | 7.75% | ▼ 25 bps |
| Discount Rate | T-bill discounting rate | 8.50% | 8.25% | ▼ 25 bps |
| Lending Rates (TZS) | ||||
| Overall Lending Rate | Weighted all maturities | 15.50% | 15.11% | ▼ 39 bps |
| Short-Term Lending (≤1yr) | Up to 1 year | 15.83% | 15.45% | ▼ 38 bps |
| Medium-Term (1–2yr) | 1 to 2 years — highest rate | 16.56% | 16.53% | ▼ 3 bps |
| Long-Term (3–5yr) | 3 to 5 years | 14.32% | 13.95% | ▼ 37 bps |
| Negotiated Lending Rate | Prime / large corporates | 12.94% | 12.21% | ▼ 73 bps |
| Deposit Rates (TZS) | ||||
| Savings Deposit Rate | Demand / savings accounts | 2.86% | 2.89% | ▲ 3 bps |
| Overall Time Deposit | Weighted all tenors | 8.00% | 8.33% | ▲ 33 bps |
| 12-Month Deposit Rate | Most common term | 8.14% | 9.60% | ▲ 146 bps |
| Negotiated Deposit Rate | Large institutional deposits | 10.35% | 11.57% | ▲ 122 bps |
| Spread Indicators | ||||
| Short-Term Interest Spread | ST lending minus neg. deposit | 7.69pp | 5.85pp | ▼ 184 bps (narrowed) |
| Overall Lending–Deposit Spread | Overall lending minus time dep. | 7.50pp | 6.78pp | ▼ 72 bps (narrowed) |
Source: Bank of Tanzania, Table A4 Interest Rates Structure & Table 2.4.1 Lending and Deposit Interest Rates.
All data is sourced from the Bank of Tanzania Monthly Economic Review, April 2026 (covering data through March 2026). Tables referenced: Table A4 (Interest Rates Structure), Table 2.4.1 (Lending and Deposit Interest Rates), Table 2.3.2 (Annual Growth of Credit to Select Economic Activities), Chart 2.3.6 (Share of Credit to Select Economic Activities). Analysis and editorial commentary by TICGL Economic Research, May 2026. This page is for informational purposes only and does not constitute financial, investment, or credit advice.