SADC central bank chiefs discuss global headwinds

Speaking at the opening of the meeting, Bank of Tanzania (BoT) Governor Emmanuel Tutuba said the gathering offers a crucial platform for assessing economic developments across the region and strengthening the resilience of SADC economies against external shocks.

“We are here to discuss economic developments across the 16 SADC countries and develop strategies to protect ourselves against global challenges. We have witnessed how the global economy is being shaken, and it is our responsibility to ensure that the financial and economic systems of our region remain resilient,” he said.

The governors are expected to deliberate on strengthening regional payment systems, enhancing liquidity in the financial sector and promoting sustainable economic growth while maintaining price stability.

Mr Tutuba said efficient payment systems remain critical to regional economic integration and financial inclusion.

“Payment systems are the backbone of a modern economy. We are discussing how to manage them effectively to ensure that money transfers within SADC remain secure, fast and affordable,” he said.

He noted that inflation continues to pose a major challenge for central banks globally, requiring policymakers to strike a balance between containing price pressures and supporting economic growth.

Against that backdrop, Tanzania has maintained one of the most stable inflation environments in the region, with inflation remaining within the BoT target range of between three and five percent.

“In some countries, inflation has risen to more than 12 percent, but in Tanzania it remains within target. We continue to use monetary policy tools to ensure inflation stays within an acceptable range,” Mr Tutuba said.

The meeting coincides with preparations for the Bank of Tanzania’s 60th anniversary celebrations on June 12, marking six decades since the institution was established in 1966 under the country's founding president, the late Mwalimu Julius Nyerere.

Mr Tutuba said the milestone provides an opportunity to reflect on the central bank’s role in supporting Tanzania’s economic transformation and modernising the financial sector.

He noted that the country has moved from a predominantly cash-based financial system to a sophisticated digital payments ecosystem that allows transactions to be completed within seconds.

“Today, a person can make payments using a mobile phone, a QR code or the Tanzania Instant Payment System (TIPS), and transfer money quickly from one bank to another. These are significant achievements made possible by reforms in the country’s financial system,” he said.

According to the BoT governor, Tanzania’s economic performance continues to reflect the benefits of those reforms. The economy expanded by 5.9 percent in 2025, outperforming the global average growth rate of 3.2 percent.

During the same period, inflation averaged 3.3 percent, below the global average of 4.3 percent, while the Tanzanian shilling remained relatively stable despite continued turbulence in the international economy.

The banking sector has also remained resilient, with the ratio of non-performing loans declining to 2.9 percent as of March 2026, below the internationally accepted threshold of five percent.

“We are proud that our financial system has remained stable. Banks have sufficient liquidity, credit continues to reach citizens, and businesses are operating in a conducive environment,” Mr Tutuba said.