The Bank of Tanzania’s Statement of Financial Position as of April 30, 2025, reveals a 1.12% increase in total assets, rising from TZS 26,363,434,564,000 in March 2025 to TZS 26,659,694,908,000. This growth reflects active economic management, with a significant 18.16% surge in advances to governments (from TZS 4,763,947,771,000 to TZS 5,629,169,678,000), indicating strong fiscal support for public spending, likely tied to Tanzania’s 2025 development goals. A 20.24% rise in inventories (from TZS 698,676,255,000 to TZS 840,111,691,000) suggests preparation for increased economic activity, while a 6.16% increase in equity (from TZS 2,813,895,536,000 to TZS 2,987,283,005,000) strengthens financial resilience. However, an 11.43% drop in cash and equivalents (from TZS 5,814,826,587,000 to TZS 5,150,530,010,000) and a 63.60% spike in other liabilities (from TZS 198,279,791,000 to TZS 324,413,464,000) highlight liquidity management and potential fiscal pressures.

These figures underscore Tanzania’s balanced approach to supporting 5.5–6% projected GDP growth in 2025 while maintaining monetary stability.

1. Total Assets

• April 30, 2025: TZS 26,659,694,908
• March 31, 2025: TZS 26,363,434,564
• Change: Increase of TZS 296,260,344
• Percentage Change:1.12%

Total assets grew by 1.12% month-over-month, indicating a slight expansion in the Bank’s asset base. Let’s break down the key contributors to this change.

Key Asset Changes

Cash and Cash Equivalents:

1. April: TZS 5,150,530,010
2. March: TZS 5,814,826,587
3. Change: Decrease of TZS 664,296,577
4. Percentage Change: -11.43%
5. Insight: A significant 11.43% drop in cash and equivalents suggests reduced liquidity, possibly due to increased lending, investments, or settlement activities.

Advances to Governments:

1. April: TZS 5,629,169,678
2. March: TZS 4,763,947,771
3. Change: Increase of TZS 865,221,907
4. Percentage Change: 18.16%
5. Insight: The 18.16% increase in advances to governments is the largest driver of asset growth, indicating significant lending or financial support to the government in April.

Inventories:

1. April: TZS 840,111,691
2. March: TZS 698,676,255
3. Change: Increase of TZS 141,435,436
4. Percentage Change: 20.24%
5. Insight: A 20.24% rise in inventories (possibly currency or other reserves) suggests stockpiling or preparation for increased circulation.

Foreign Currency Marketable Securities:

1. April: TZS 8,790,819,501
2. March: TZS 8,978,815,336
3. Change: Decrease of TZS 187,995,835
4. Percentage Change: -2.09%
5. Insight: A 2.09% reduction may reflect sales of securities or market value adjustments, possibly to fund other activities like advances to governments.

Gold:

1. April: TZS 104,372,142
2. March: TZS 96,633,290
3. Change: Increase of TZS 7,738,852
4. Percentage Change: 8.01%
5. Insight: An 8.01% increase in gold holdings could reflect rising gold prices or additional purchases, strengthening the Bank’s reserve position.

Items in Course of Settlement:

1. April: TZS 65,828,437
2. March: TZS 0
3. Change: Increase of TZS 65,828,437
4. Percentage Change: Not applicable (March value is zero).
5. Insight: The appearance of this item suggests pending transactions or settlements that were not present in March.

2. Total Liabilities

• April 30, 2025: TZS 23,672,411,903
• March 31, 2025: TZS 23,549,539,028
• Change: Increase of TZS 122,872,875
• Percentage Change: 0.52%

Liabilities grew by 0.52%, a smaller increase compared to assets, suggesting the Bank’s financial position strengthened slightly.

Key Liability Changes

Deposits - Banks and Non-Bank Financial Institutions:

1. April: TZS 3,736,660,067
2. March: TZS 3,612,551,132
3. Change: Increase of TZS 124,108,935
4. Percentage Change: 3.44%
5. Insight: A 3.44% increase in deposits from financial institutions indicates higher confidence or liquidity in the banking sector.

Other Liabilities:

1. April: TZS 324,413,464
2. March: TZS 198,279,791
3. Change: Increase of TZS 126,133,673
4. Percentage Change: 63.60%
5. Insight: The sharp 63.60% rise suggests new obligations or accrued expenses, possibly related to operational or policy activities.

Foreign Currency Financial Liabilities:

1. April: TZS 4,780,635,213
2. March: TZS 4,898,553,860
3. Change: Decrease of TZS 117,918,647
4. Percentage Change: -2.41%
5. Insight: A 2.41% reduction may indicate repayment of foreign obligations or favorable exchange rate movements.

Currency in Circulation:

1. April: TZS 8,140,182,041
2. March: TZS 8,169,936,634
3. Change: Decrease of TZS 29,754,593
4. Percentage Change: -0.36%
5. Insight: A slight 0.36% decrease in currency in circulation may reflect reduced cash demand or withdrawal from circulation.

Allocation of Special Drawing Rights (SDRs):

1. April: TZS 2,077,052,451
2. March: TZS 2,013,963,428
3. Change: Increase of TZS 63,089,023
4. Percentage Change: 3.13%
5. Insight: A 3.13% increase aligns with the rise in SDR holdings on the asset side, reflecting IMF-related adjustments.

Items in Course of Settlement:

1. April: TZS 0
2. March: TZS 71,395,912
3. Change: Decrease of TZS 71,395,912
4. Percentage Change: Not applicable (April value is zero).
5. Insight: The clearing of this liability suggests settlements were completed in April.

3. Total Equity

• April 30, 2025: TZS 2,987,283,005
• March 31, 2025: TZS 2,813,895,536
• Change: Increase of TZS 173,387,469
• Percentage Change: 6.16%

Analysis: Equity increased by 6.16%, driven entirely by a rise in reserves, as the authorized and paid-up capital remained unchanged at TZS 100,000,000.

Reserves:

• April: TZS 2,887,283,005
• March: TZS 2,713,895,536
• Change: Increase of TZS 173,387,469
• Percentage Change: 6.39%
• Insight: The 6.39% growth in reserves indicates improved financial health, possibly due to retained earnings or revaluation gains (e.g., gold or foreign currency).

Key Observations and Insights

1. Asset Composition:
   • The largest asset categories are Foreign Currency Marketable Securities (32.97% of total assets in April) and Advances to Governments (21.11%). The significant increase in advances to governments (18.16%) suggests a policy focus on supporting public finances.
   • The drop in cash and equivalents (-11.43%) and foreign currency securities (-2.09%) may indicate a shift of funds to government lending or other investments.
2. Liability Structure:
   • Currency in Circulation (34.36% of total liabilities) and Foreign Currency Financial Liabilities (20.19%) are the largest liability categories. The slight reduction in currency in circulation (-0.36%) and foreign liabilities (-2.41%) suggests controlled monetary expansion and debt management.
   • The sharp rise in Other Liabilities (63.60%) warrants further investigation, as it could reflect new commitments or operational costs.
3. Equity Growth:
   • The 6.16% increase in equity, driven by reserves, strengthens the Bank’s capital position, enhancing its ability to absorb shocks.
4. Balance Sheet Stability:
   • The asset growth (1.12%) outpacing liability growth (0.52%) resulted in a stronger equity position, indicating financial stability.
   • The net increase in total assets matches the sum of liabilities and equity (TZS 26,659,694,908), confirming the balance sheet’s accuracy.

Key Economic Updates from the Statement

1. Increased Government Financing Suggests Fiscal Support

• Advances to Governments:
  • April 2025: TZS 5,629,169,678
  • March 2025: TZS 4,763,947,771
  • Change: Increase of TZS 865,221,907 (+18.16%)
• Economic Implication:
  • The significant 18.16% increase in advances to governments indicates heightened central bank support for public expenditure. This suggests the Tanzania government may be facing fiscal pressures, possibly due to infrastructure projects, social programs, or debt servicing needs.
  • This aligns with Tanzania’s focus on development projects under the Third Five-Year Development Plan (FYDP III, 2021/22–2025/26), which emphasizes infrastructure and industrialization. The central bank’s lending likely supports these initiatives, but it could also signal reliance on domestic financing if external borrowing is constrained.

2. Reduced Liquidity Reflects Active Monetary Management

• Cash and Cash Equivalents:
  • April 2025: TZS 5,150,530,010
  • March 2025: TZS 5,814,826,587
  • Change: Decrease of TZS 664,296,577 (-11.43%)
• Economic Implication:
  • The 11.43% drop in cash and equivalents suggests the Bank of Tanzania is actively managing liquidity, possibly to fund government advances or settle transactions (evidenced by the new TZS 65,828,437 in “Items in Course of Settlement”).
  • This could indicate tighter monetary conditions to control inflation or stabilize the Tanzanian shilling, especially if external pressures (e.g., global commodity prices or import costs) are affecting liquidity. In 2024, Tanzania’s inflation was reported around 3–4%, within the Bank’s target, so this reduction may reflect deliberate policy to maintain price stability.

3. Rising Inventories Point to Currency or Reserve Build-Up

• Inventories:
  • April 2025: TZS 840,111,691
  • March 2025: TZS 698,676,255
  • Change: Increase of TZS 141,435,436 (+20.24%)
• Economic Implication:
  • The 20.24% rise in inventories, likely currency stocks or precious metals, suggests preparation for increased currency circulation or reserve strengthening. This could be in response to anticipated economic activity, such as seasonal agricultural exports (e.g., cashew or coffee) or tourism inflows, which are key to Tanzania’s economy.
  • Alternatively, it may reflect precautionary measures to ensure currency availability amid potential supply chain or economic disruptions.

4. Stable Foreign Reserves Amid Global Pressures

• Foreign Currency Marketable Securities:
  • April 2025: TZS 8,790,819,501
  • March 2025: TZS 8,978,815,336
  • Change: Decrease of TZS 187,995,835 (-2.09%)
• Gold:
  • April 2025: TZS 104,372,142
  • March 2025: TZS 96,633,290
  • Change: Increase of TZS 7,738,852 (+8.01%)
• Holdings of Special Drawing Rights (SDRs):
  • April 2025: TZS 14,696,637
  • March 2025: TZS 14,250,237
  • Change: Increase of TZS 446,400 (+3.13%)
• Economic Implication:
  • The slight 2.09% decline in foreign currency securities, contrasted with an 8.01% rise in gold and 3.13% in SDRs, suggests a stable but cautious approach to foreign reserves. Tanzania’s foreign exchange reserves are critical for import cover (e.g., fuel, machinery) and debt servicing.
  • The increase in gold holdings may reflect a hedge against global economic uncertainty or rising gold prices, which have been trending upward globally in 2024–2025. The Bank’s reserves appear sufficient to maintain the shilling’s stability, as Tanzania’s import cover was reported at around 4–5 months in late 2024, above the regional benchmark of 4 months.

5. Controlled Currency Circulation Indicates Monetary Stability

• Currency in Circulation:
  • April 2025: TZS 8,140,182,041
  • March 2025: TZS 8,169,936,634
  • Change: Decrease of TZS 29,754,593 (-0.36%)
• Economic Implication:
  • The marginal 0.36% decrease in currency in circulation suggests controlled money supply growth, aligning with the Bank’s efforts to manage inflation. This is consistent with Tanzania’s low and stable inflation environment (3–4% in 2024), supported by prudent monetary policy and agricultural output.
  • It may also reflect a shift toward digital payments, as Tanzania has been promoting financial inclusion and mobile money platforms, reducing reliance on physical currency.

6. Increased Deposits Reflect Banking Sector Confidence

• Deposits - Banks and Non-Bank Financial Institutions:
  • April 2025: TZS 3,736,660,067
  • March 2025: TZS 3,612,551,132
  • Change: Increase of TZS 124,108,935 (+3.44%)
• Economic Implication:
  • The 3.44% rise in deposits from financial institutions indicates growing confidence in the banking sector and central bank. This could reflect increased liquidity in commercial banks, possibly driven by economic growth in sectors like mining, tourism, or agriculture.
  • Tanzania’s GDP growth was projected at 5.5–6% for 2025 by the IMF, driven by these sectors, so higher deposits align with economic expansion and financial system stability.

7. Sharp Rise in Other Liabilities Raises Questions

• Other Liabilities:
  • April 2025: TZS 324,413,464
  • March 2025: TZS 198,279,791
  • Change: Increase of TZS 126,133,673 (+63.60%)
• Economic Implication:
  • The 63.60% surge in other liabilities is notable and may indicate new obligations, such as operational costs, policy-related expenses, or pending payments. Without further detail, this could signal temporary fiscal pressures or one-off commitments.
  • If related to government support or debt management, it may warrant monitoring to ensure it doesn’t strain the Bank’s balance sheet.

8. Strengthened Equity Bolsters Financial Resilience

• Total Equity:
  • April 2025: TZS 2,987,283,005
  • March 2025: TZS 2,813,895,536
  • Change: Increase of TZS 173,387,469 (+6.16%)
• Reserves:
  • April 2025: TZS 2,887,283,005
  • March 2025: TZS 2,713,895,536
  • Change: Increase of TZS 173,387,469 (+6.39%)
• Economic Implication:
  • The 6.16% increase in equity, driven by a 6.39% rise in reserves, strengthens the Bank’s capital base, enhancing its ability to absorb economic shocks. This could result from retained earnings, revaluation gains (e.g., gold or foreign assets), or prudent financial management.
  • A stronger central bank balance sheet supports Tanzania’s economic stability, providing confidence to investors and creditors, especially as the country seeks to attract foreign investment in energy and mining.

Broader Economic Context and Implications

1. Fiscal Policy and Government Borrowing:
   • The 18.16% increase in advances to governments highlights the central bank’s role in financing public spending. While this supports development goals, it may raise concerns about fiscal sustainability if government borrowing grows without corresponding revenue increases. Tanzania’s public debt was around 40% of GDP in 2024, considered manageable, but monitoring is needed to avoid crowding out private sector credit.
2. Monetary Policy and Inflation Control:
   • The slight reduction in currency in circulation (-0.36%) and liquidity (-11.43%) suggests the Bank of Tanzania is maintaining tight control over money supply to keep inflation within its 3–5% target. This is critical as global inflationary pressures (e.g., energy and food prices) could challenge Tanzania’s price stability in 2025.
3. Foreign Exchange and External Resilience:
   • Stable foreign reserves, with a slight shift toward gold (+8.01%) and SDRs (+3.13%), indicate resilience against external shocks. Tanzania’s trade balance, driven by gold and agricultural exports, likely supports reserve adequacy. However, the 2.09% drop in foreign currency securities may reflect strategic sales to fund imports or debt payments.
4. Economic Growth and Financial Sector:
   • The 3.44% rise in bank deposits and 6.16% equity growth signal a robust financial sector and economic optimism. Tanzania’s projected 5.5–6% GDP growth in 2025, driven by mining (gold, critical minerals), tourism, and agriculture, aligns with these trends. The central bank’s strengthened position supports investor confidence.
5. Potential Risks:
   • The 63.60% increase in other liabilities is a red flag, as it could indicate unforeseen costs or obligations. If persistent, it may strain the Bank’s financial position.
   • Heavy reliance on government lending (21.11% of assets) could pose risks if fiscal revenues underperform, especially if global economic conditions worsen.

Conclusion

The Bank of Tanzania’s balance sheet as of April 30, 2025, reflects a stable but active economic environment. Key updates include increased government financing (+18.16%), reduced liquidity (-11.43%), and a build-up of inventories (+20.24%), suggesting fiscal support and monetary caution. Stable foreign reserves and a stronger equity position (+6.16%) indicate resilience, supporting Tanzania’s projected 5.5–6% GDP growth in 2025. However, the sharp rise in other liabilities (+63.60%) warrants scrutiny to ensure long-term stability. These trends align with Tanzania’s focus on development, inflation control, and financial sector growth, but careful management of fiscal and monetary policies will be crucial to sustain this trajectory.

Below is a table summarizing the key figures from the Bank of Tanzania’s Statement of Financial Position as of April 30, 2025, compared to March 31, 2025, with changes and percentage changes calculated. The table focuses on the most significant items driving economic insights, as discussed previously, to provide a clear overview of Tanzania’s economic updates. All amounts are in Tanzanian Shillings (TZS) thousands.

Notes on the Table

Economic Context:

1. The 18.16% increase in advances to governments (+TZS 865,221,907) underscores significant fiscal support, likely for development projects.
2. The 11.43% drop in cash and equivalents (-TZS 664,296,577) suggests active liquidity management to control inflation or fund lending.
3. The 20.24% rise in inventories (+TZS 141,435,436) indicates preparation for increased economic activity or currency demand.
4. Stable foreign reserves (e.g., gold +8.01%, SDRs +3.13%) support external resilience, despite a 2.09% decline in securities.
5. The 63.60% surge in other liabilities (+TZS 126,133,673) is a potential concern, warranting further scrutiny.
6. The 6.16% equity growth (+TZS 173,387,469) strengthens the Bank’s ability to support Tanzania’s 5.5–6% projected GDP growth in 2025.