The Board of Directors of the Bank of Tanzania (the Bank) is the supreme policy decision making organ in the institution’s hierarchical structure. Under the Bank of Tanzania Act, 2006 the Board of Directors is responsible for determining  policies of the Bank, approval of its budget and allocation of profits arising from its operations. In its functioning, the Board is currently assisted by three Committees. Two of the Board Committees are statutory creations. These are the Monetary Policy Committee and Audit Committee. Under the Bank’s statute, the Board reserves power to appoint other committees as it deems fit. In addition to the statutory Committees, the Board has delegated some of its functions to the Banking Supervision Committee.

The Board  consists of ten persons, four of whom are executive directors and two are ex-officio. In addition, there are four non-executive Directors appointed by the Minister of Finance. The Governor and Deputy Governors are appointed by the President. The current composition of the Board of Directors is as follows:

Governor (the Chairman);

three Deputy Governors, Deputy Chairmen in the order determined by the Governor;

the Permanent Secretary to the Treasury of the Government of the United Republic and Principal Secretary to the Treasury of the Revolutionary Government of Zanzibar; and

four non-executive Directors.

The Board consists of persons knowledgeable or experienced in economics, business and finance, banking, corporate law, accountancy or other disciplines relevant to the functions of the Bank. Members of the National Assembly, House of Representatives, Local Government Authorities, public  servants (other than Permanent Secretary Treasury of the United Republic and the Principal Secretary Treasury of the Revolutionary Government of Zanzibar), office bearers of any political party, and directors, employees, consultants or shareholders of banks and financial institutions in respect of which the Bank may exercise regulatory powers are disqualified from being Directors of the Bank.

Governor and Deputy Governors are appointed for a period of five years. Their tenure of office is statutorily limited to two five year terms. Non-executive Directors are appointed for a period of three years, and are eligible for a reappointment.

Board meetings are held regularly as the conduct of business of the Bank requires but not less than once in every two months. Where there is an urgent matter which cannot await the convening of a meeting consisting of the requisite quorum, the Chairman may table such matter at a meeting of the Chairman, and at least two Deputy Governors and one non-executive Director. Decisions arising out of that meeting are valid and binding on the Bank but shall be reported to an extra-ordinary Board meeting immediately thereafter. The decisions of the Board are made by consensus, failing which decisions shall be reached by casting of votes. In the event that voting is necessary, Permanent Secretary Treasury of the Government of the United Republic and Principal Secretary Treasury of the Revolutionary Government of Zanzibar are not eligible for voting.

The Monetary Policy Committee, which is a statutory creation, monitors implementation of monetary policy adopted by the Board. It reviews monthly  performance of monetary policy targets and sets targets for the following month. The composition of this Committee is provided for in the Bank of Tanzania Act, 2006. It includes the Governor as the Chairman, Deputy Governors and at least one non-executive Director. The Committee meetings are held monthly.