Many Tanzanians seem to be avoiding the banks, with more than half the country’s population being excluded in the financial institutions circles across the nation.
This is according to the findings from the FinScope Tanzania 2023 Survey which reveals that many residents are scared of the bank corridors.
It was discovered by FinScope that only 21 percent of the country’s mainland population is banked.
In the isles it is just 24 percent of Zanzibar and Pemba residents who access formal financial services.
Overall on average it is around 35 percent of the total Tanzanian population of 62 million, which is banked.
Dar-Es-salaam which is the most populated urban region leads with the highest number of residents accessing formal financial services but even there only 45 percent are banked.
Arusha, which is the country’s most digital literate metropolitan being the first to be linked to the internet back in 1994, only has 34 percent of its residents accessing financial services.
Singida, despite having many food and cash crop farmers, is the least banked region with only 10 percent of its population accessing formal financial services.
The study happens to be a national representative demand-side survey of adults that are people who are aged 16 years or older, living in Tanzania.
It was using the latest population census from 2022 by the National Bureau of Statistics.
The size of the Tanzanian adult population is currently estimated to be 34.1 million and this accounts for 55 percent of the total Tanzanian 2022 Census population of 61.7 million.
FinScope Tanzania is a comprehensive financial sector demand-side survey of Tanzanian adults aged 16 years and above.
The study provides an understanding of the financial services uptake landscape across the country and is a reliable measure for demand and usage of financial services across various population segments.
In addition, the insights of FinScope Tanzania are supposed to present barriers and levers to financial inclusion.