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Tanzania Vice President urges banks to embrace AI, boost cybersecurity
The Vice President of the United Republic of Tanzania, Dr Philip Isidor Mpango (centre), arrives at the CRDB Bank Shareholders’ Seminar ahead of the Bank’s 30th Annual General Meeting, taking place at the Arusha International Conference Centre (AICC). Accompanying him are the Chairman of the CRDB Bank Board of Directors, Dr Ally Laay (left), and the CRDB Bank Chief Executive Officer, Abdulmajid Mussa Nsekela.
What you need to know:
- The Vice President used the occasion to reflect on the sector’s progress over the past three decades, citing the 1990s financial reforms that enabled the emergence of commercial banks such as CRDB Bank. These reforms, he said, were pivotal in enhancing competition, efficiency, and financial stability. Subsequent policy developments—including the Banking and Financial Institutions Act (BFIA), and frameworks for financial inclusion and education—have helped build a more resilient financial ecosystem.
Arusha. Vice President Dr Philip Mpango has urged Tanzania’s financial institutions to embrace Artificial Intelligence (AI) and invest in modern technologies as a means to cut costs, boost inclusion and enhance customer experience, while also stressing the need for stronger cyber protection.
Speaking on Friday, May 16, 2025, at the opening of the CRDB Bank shareholders’ seminar in Arusha—held ahead of the bank’s Annual General Meeting (AGM) that is slated for Saturday, May 17—Dr Mpango said the use of AI in the banking sector could be a game-changer, particularly in reaching rural and financially excluded populations.
“Investment in technology, especially AI, will not only increase efficiency and productivity and reduce costs, but also bring banking services closer to the people,” he told stakeholders. He added that banks must start viewing AI as a critical tool to protect their capital and grow their customer base.
However, the Vice President also cautioned that increasing digitalisation comes with rising cybersecurity risks. He called on financial institutions to strengthen their digital infrastructure to safeguard against cybercrime, data breaches and fraud.
“Technology must be matched with robust cybersecurity. The future of banking depends on how well we balance innovation with protection,” Dr Mpango said.
The Vice President also revealed that, according to a recent OECD study published in February 2025, more than $10 trillion is expected to be invested globally in fighting cybercrime over the next few years. He noted that AI and robotics are set to play a growing role in banking and insurance jobs, further underscoring the urgency for Tanzanian banks to modernise.
Dr Mpango further encouraged banks to explore the adoption of digital assets and blockchain technologies. He advised institutions to begin engaging with the Bank of Tanzania (BoT) and Tanzania Bankers Association (TBA) to develop a legal framework that would allow safe and regulated entry into the digital asset space.
The Vice President used the occasion to reflect on the sector’s progress over the past three decades, citing the 1990s financial reforms that enabled the emergence of commercial banks such as CRDB Bank. These reforms, he said, were pivotal in enhancing competition, efficiency, and financial stability. Subsequent policy developments—including the Banking and Financial Institutions Act (BFIA), and frameworks for financial inclusion and education—have helped build a more resilient financial ecosystem.
CRDB Bank was singled out for its contribution to digital innovation and financial inclusion. Through products like SimBanking and CRDB Wakala, the bank has expanded services to remote areas where traditional branches are not viable.
CRDB Bank Group CEO Abdulmajid Nsekela said the bank’s transformation has been driven by digital investments and a focus on customer-centric innovation. From just 19 branches in 1996, CRDB now boasts over 260 branches nationwide, and has introduced over 95 percent of the banking solutions currently in use in the market.
Among its innovations are TemboCard, ATMs and PoS services, mobile and internet banking, and most recently, the Sharia-compliant CRDB Al Barakah. CRDB has also led in insurance with the launch of its subsidiary CRDB Insurance, and in green finance with the issuance of Tanzania’s first Green Bond and road infrastructure bond—the Samia Infrastructure Bond.
The bank has extended its reach beyond Tanzania’s borders, establishing CRDB Bank Burundi in 2012 and entering the Democratic Republic of Congo in 2023.
CRDB is now the largest bank in the country by asset base, with total assets reaching Sh16.6 trillion in 2024. It leads in deposits (Sh10.9 trillion) and lending (Sh10.4 trillion), and posted a post-tax profit of Sh551 billion last year—an impressive turnaround from the losses recorded in 1996.
The bank remains one of the country's top corporate taxpayers and continues to deliver solid returns to shareholders, including the government.
