Calendar of Important Monetary and Economic Policy Events

Date Event
2005 Jun: The government approved and announced the preferred bidder for National Micro-finance Bank (NMB).
2005 Jun: The G8 Finance Ministers on June 11th 2005 announced a proposal on debt cancellation for highly Indebted Poor Countries.  The proposal envisages 100 percent cancellation of HIPCs disbursed outstanding debt as at 31st December 2004 due to IMF, World Bank and African Development Bank. The announcement entails cancellation of Tanzania debt worth US$ 4.832 billion.
2005 Jun: Zanzibar Investment Promotion Authority (ZIPA) was established as a government focal point for the promotion and facilitation of investment in Zanzibar.
2005 May: Report on Private Capital Flows was delivered to the Revolutionary Government of Zanzibar.
2005 Mar: Zanzibar Business Council was inaugurated. The Council is under the Chairmanship of the Zanzibar President. The council’s main objective is to promote development dialogue and propose common strategies for addressing problems facing the private sector growth.
2005 Mar: Zanzibar Business Council was inaugurated. The Council is under the Chairmanship of the Zanzibar President. The council’s main objective is to promote development dialogue and propose common
2005 Jan:  Effective 07th January 2005, TRA commenced operation of the installed Flow Meter Machine.
2005 Jan: The East African Community Customs Union that was ratified by the Partner States in December 2004 commenced its operations. Under the protocol, trade on goods originating and traded among the Partner States attracts a zero tariff. A three-band Common External Tariff (CET) structure of 0%, 10%, and 25% is applied to goods imported into EAC. A selected list of sensitive items attracts rates above 25% as an additional protection measure for similar locally produced products.
2004 Dec: Effective end of December 2005, the government developed and introduced a computerized risk-management system aimed at expanding customs clearance primarily through reducing significantly the number of shipments that are physically inspected.
2004 Dec: The East African Legislative Assembly enacted the East African Community Customs Management Act, 2004.
2004 Nov: The National Assembly passed the National Economic Empowerment act, 2004. Under the act, the government has resolved to take measures designed to promote and facilitate economic initiatives aimed at empowering Tanzanians.
2004 Nov: Effective 1st November 2004, National Bureau de Change Limited changed and started using a new name “Twiga Bancorp Limited.
2004 Oct: Kenya Airways was listed in the Dar-es-Salaam Stock Exchange (DSE) with capitalization of TZS. 84.48 billion. This was the first foreign company to be listed at the DSE.
2004 Oct: Effective 7th October 2004, the Bank of Tanzania licensed the Bank of Baroda (T) Limited to operate as fully-fledged commercial bank.
2004 Jun: The Government made the following fiscal policy changes:
  • Fixing stamp duty on cigarette packets sold in Zanzibar, like in Tanzania Mainland.
  • Introduced excise duty on locally manufactured products
2004 Jun: Effective 1st June 2004, Savings and Finance Limited changed its status from a non-bank financial institution to a fully-fledged commercial bank.
2004 Mar: The Protocol on the Establishment of the East African Community Customs Union was signed.
2004 Mar:  Commencement of the National account Household Budget Survey (HBS) by Office of the Chief Government Statistician (OCGS). The completion is expected to improve and provide up to date income levels for the people of Zanzibar and more realistic poverty indicators and a new CPI for rural and urban areas. This is expected to reduce weight of food item and hence stabilise the inflation rate.
 
2004 Mar: The second and final closing of the Debt Buyback Scheme took place on March 31st 2004 under which debts worth US$ 43.8 million, made up of BOTh principal and interest was retired at a price of 12 cents on a dollar of principal amount tendered.
2004 Jan: President Zanzibar and Chairman of the Revolutionary Council H.E. Amani Abeid Karume laid down foundation stone for the construction of the Zanzibar Branch BOT office. Construction began in February 2004 and completion expected in October 2004
2003 Jun: The President of the Union Government of Tanzania as empowered in section 134 of the Constitution of the Union Republic of Tanzania of 1977 (as amended) established the Joint Finance Commission (JFC) and Joint Finance Bill No 14 of 1996.
2003 May: The Chief Government Statistician reviewed the basis of National Account Database:
  • Changed National Account base year from 1991 to 2001
  • Adopted the national account statistics to internationally accepted standards
2003 May: Effective 21st May 2003, the Tanzanian Government opened up the Dar es Salaam Stock Exchange (DSE) to foreign investors.
2003 Mar: Effective March, the Bank of Tanzania started the process of replacing old notes with the new ones and introduce TZS 2000 denomination into the circulation.
2003 Mar: Effective 3rd March, the Delphis Bank was ordered to stop operations by the Bank of Tanzania and was put under statutory supervision of the Bank of Tanzania.
2003 Feb:  The Bank of Tanzania Act (1995) was amended by the Financial Laws (Miscellaneous Amendments) Act, 2003 to give the Bank general powers on the national payment, clearing and settlement system matters comprising oversight and regulation of the National Payment System.
2003 Jan: The Government introduced a Treasury Voucher System for those exempted from paying taxes. This system will allow organizations and institutions benefiting from tax exemptions to receive a Treasury Voucher and present it to Tanzania Revenue Authority.
2002 Oct: The Ministry of Finance issued additional non-marketable stocks into marketable securities worth TZS 90.0 billion.
2002 Aug: The Bank of Tanzania on behalf of the Government launched a 10-year Treasury bond with a fixed coupon rate of 7.75 percent.
2002 Jul: The Ministry of Finance issued additional unsecuritized domestic debts worth TZS 20.0 billion to be converted into marketable securities.
2002 Jul: The Bank of Tanzania on behalf of the Government launched a 7-year Treasury bond with a fixed coupon rate of 7.75 percent.
2002 Jul: The Bank of Tanzania established an Export Credit Guarantee Scheme (ECGS) to hasten the provision of credit to the export sector, notably non-traditional exports in order to augment efforts towards increased export earnings.
2002 Jul: Effective 17th July, the Bank of Tanzania licensed the Kagera Farmers Cooperative Bank Ltd stationed in Bukoba to operate as fully-fledged commercial bank.
2002 Jun: The Bank of Tanzania licensed African Bank Corporation (former ULC), effective from 3rd June as a commercial bank.
2002 May: The Bank of Tanzania in collaboration with the Ministry of Finance, converted unsecuritized domestic debts worth TZS 20.0 billion into marketable securities.
2002 May: Effective 29th May, the Bank of Tanzania reinstated the 35-days Treasury bill to cater for monetary policy implementation in the country.
2002 May: Effective 15th May, the Bank of Tanzania licensed as a non bank, The Dar es Salaam Community Bank, and Tanzanians especially Dar Es Salaam residents were encouraged to acquire shares.
2002 May: Effective 10th May, the Bank of Tanzania licensed United Bank of Africa as a commercial bank.
 
2002 Apr: The Bank of Tanzania changed the 2-year Treasury bond auctions from uniform prices to multiple prices.
2002 Apr: Effective 15th April, the Bank of Tanzania licensed CF Union Bank Ltd (a merger of then Furaha Finance and Crown) as a commercial bank.
2002 Mar: Effective 1st March, the Bank of Tanzania established a Bank of Tanzania Electronic Clearing House (BOTECH) system at the Dar es Salaam Clearing House, targeted at enhancing the check processing speed, minimizing errors and acts of fraud in the inter-bank transactions. Also, the Magnetic Ink Character Recognition (MICR) equipment for processing paper instruments and generation of electronic files was commissioned to be used by the Electronic Clearing House and the Central Banking System (CBC) at three sites of Dar es Salaam, Mwanza and Arusha.
2002 Feb: The Bank of Tanzania on behalf of the Government launched a 5-year Treasury bond with a fixed coupon rate of 7.5 percent, which is traded in the Dar Es Salaam Stock Exchange (DSE).
2002 Jan: The Paris Club Creditors met on January 17, 2002 and agreed to offer debt relief under Cologne Stock Terms by cancelling 90 percent stock of their debts amounting to US$ 737 million in net present value terms or US$ 1.0 billion in nominal terms. This was part of HIPC Initiative.
2001 Nov: Tanzania fulfilled all the conditions and managed to reach HIPC Floating Completion Point in November 2001, that was 15 months ahead of originally scheduled time of 36 months.
 
2001 Jun: The first closing of the Tanzania debt buyback operation took place on 6th June with debt worth about US$ 155.7 million (principal
and interest) being retired, utilizing about US$ 7.2 million from the grant. The first closing of the operation represents an important step towards the implementation of the Government’s debt reduction strategy.
2001 May:  The Management of Risk Assets Regulations, 2001 came into effect on 1st May 2001 and repealed “The Guidelines on Management of Risk Assets, Classification of Loans and Other Risk Assets, Provisioning for Losses and Accrual of Interest” issued on 18th October 1991.
2001 May: The Credit Concentration and Other Exposure Limits Regulations, 2001 came into effect on 1st May 2001 and repealed “The Guidelines on Concentration of Credit and Other Exposure Limits” issue on 22nd December 1992.
2001 May: The Capital Adequacy Regulations, 2001 became effective on 1st May 2001 and repealed “Guidelines for Measuring Capital Adequacy” issued on 1st October 1993 and the Addendum to Circular No. 3 on Capital Adequacy issued on 27th March 1996.
 
2001 Feb: The Government launched a national micro-finance policy on 2nd February that lays out the principles of upgrading services through efficient and effective micro-finance systems.
2001 Jan: Effective 1st January the petroleum sector was fully and effectively liberalized and the Government stopped extending subsidies to Tanzania Petroleum Development Corporation (TPDC).
2001 Jan: On 15th January, the Heads of State of Tanzania, Kenya and Uganda, formally inaugurated the East African Community (EAC) at the Sheikh Amri Abeid Karume Stadium Arusha.
2000 Oct: Effective October 1st Tanzania pulled out of Common Market for East and Southern Africa (COMESA).
2000 Oct:  The Bank of Tanzania licensed Mwanga Community Bank to operate as a community bank.
2000 Oct: Effective 19th October, the Bank of Tanzania licensed Barclays Bank (T) Ltd.
2000 Sep: The Publication of Financial Statements Regulations, 2000 was officially made operational on 1st September 2000.
2000 Sep: The Liquid Assets Ratio Regulations, 2000 became effective on 1st September 2000.
2000 Sep: Effective on 1st September
2000: the Independent Auditors Regulations 2000 became operational.
2000 Sep: Circular No. 8: The Money Laundering Control aimed at guiding banks and financial institutions on uncovering, reporting and controlling money laundering became effective on 1st September, 2000.
2000 Jul: Bank of Tanzania shifted from targeting extended broad money (M3) as a monetary policy intermediate target to broad money (M2).
2000 Jul: Bank of Tanzania shifted from calculation of average interest rates to weighted average interest rates.
2000 May:  The Bank of Tanzania took over the management of 1st Adili Bancorp on 15th of May due to its poor performance and shareholders inability to inject more capital in the bank to cover for the heavy losses sustained in its operations.
2000 Apr: Agreed minute was signed on 14th April in relation to Tanzania’s qualification for Paris Club VI rescheduling arrangement. Under this arrangement Tanzania will be treated under Cologne terms, which provide cancellation of 90 percent of the debt service due up to the Completion Point of the enhanced HIPC Initiative.
2000 Mar: Tanzania at end March reached a Decision Point and qualified for consideration of additional debt relief under HIPC Program, after the IMF approved Tanzania’s three year Poverty Reduction and Growth Facility (PRGF).
2000 Jan: Effective January 15, 2000 the Minimum Reserve Requirement was set at 10 percent of total deposit liabilities (including foreign currency deposits) plus 50 percent of vault cash excluding deposit in the clearing account.
   
1997 Apr: On 11th April, New Banking and Financial Institutions Regulations were gazetted and published following the review of the Licensing procedures.
1997 Jun:  Effective 1st June, the Operations and Accounting Manuals for the BoT branches were completed and put into operation
1997 Jan: On January 21st, representatives of the United Republic of Tanzania met with the Paris Club creditors in Paris to consider debt relief for Tanzania. The creditor countries agreed to recommend to their governments a treatment providing for debt reduction of up to 67 percent in net present value terms, in line with the Naples Terms agreed in December 1994.
1997 Feb: On February 20, the Government issued an order to harmonize customs tariffs between Mainland and Zanzibar for selected items. The order became effective following the publication of the Customs Tariff (Amendment) Order signed by the Minister for Finance Hon. Daniel Yona in the Government Gazette of January 24. The order could not be effected earlier due to delays in the publication of the customs tariff amendments. The harmonized customs, excise, sales tax, and COMESA tariffs will be applied to rice, cooking oil, wheat flour, sugar, khanga, and vitenge.
1997 Mar:  Effective 1st March, through circular no.1, Reserves against Deposits and Borrowings was amended. Minimum Cash Reserve Ratio (MCRR), was raised from 6.0 percent to 12.0 percent and included cash in vaults as part of available reserves.
1997 Mar: On 10th March 1997 a new family of bank notes with a motif of a head of Giraffes for the TZS 500/=, 1,000/=, 5,000/= and 10,000/=. denominations were released into circulation.
1997 Apr: Effective 1st April, Tellers functions were transferred from currency Dept. to the Banking Department for the purpose of improving operational efficiency. Hence, the "Tellers Cash Section" (Tellers Section and Intermediate Vault Section), is now administered by the Banking Department.
1997 Apr:   From 7-9th April, 10th Conference of Financial Institutions was held at AICC- Arusha.
1996 Jul: On July 15, the obligations of Article VIII Section 2, 3, and 4 of the IMF's Articles of Agreement were accepted by the Government.
1996 Sep: Effective 1st September, through circular no.5, new BoT report form 16-4 (a) on Foreign Exchange Exposure and Placements, Purchases, Sales, and Balances was introduced, now submitted to BoT on monthly basis.
1996 Nov: On November 8, the Government reached an agreement with the IMF for an ESAF programme covering 1996/97 - 1998/99. Under this programme the Fund will make available a total of SDR 161.6 million, ( about USD 240.0 million) to be disbursed in six equal instalments, within three years.
1997 Jan: On 15th January 1997, a TZS 50/= coin was released into circulation.
1997 Jan: Effective January 20, the Minimum Cash Reserve Ratio (MCRR), was reduced from 12.0 percent to 6.0 percent whereby cash in vaults was excluded from available reserves.
1996 May:  From May 15, the BOT began using 91-day Treasury Bills as instrument of liquidity management under this system the proceeds from its sale are sterilised in a blocked BOT account, with the BOT paying the interest.
1996 Jul: The central payment system was introduced in five ministries.
1996 Jul: The Tanzania Revenue Authority (TRA) was established, in a bid to improve tax administration
1996 Jul: From July 1, the credit ceiling on commercial banks' lending was abolished.
1996 Jul: From July 1, the Government reintroduced a 2.0 percent tax on Traditional Exports.
1996 Jul:  On July 1, the 10.0 percent withholding tax on income from Treasury Bills and deposits was abolished.
1996 Apr: On April 1, the entitlement of commercial banks to hold up to 50 percent of their Statutory Minimum Reserve in Treasury Bills was abolished.
1996 Apr: Effective April 1, the Minimum Reserve Requirement was decreased from 18.0 percent to 12.0 percent (all deposit liabilities, excluding foreign currency deposits) with; vault cash as part of the Minimum Reserve Requirement.
1996 Jan: The government adopted the cash budget system to control inflationary spending and reduce budget deficits.
1995 Nov: Effective 9th November, every bank and financial institution was required to determine and report on foreign exchange purchases, sales, maximum net open position, and average balances on weekly basis to the Bank.
1995 Oct: On 20th October, Minimum Reserve Requirements (MRR), was reduced from 18 percent to 12 percent of the outstanding balance of shilling deposits and borrowings from the general public. The reserves were to consist of balances in the Statutory Minimum Reserve (SMR) account maintained with the Bank and cash in vaults.
1995 Sep: On September 20, commercial banks were allowed to hold up to 50.0 percent of their Statutory Minimum Reserve requirements in Treasury Bills. This measure was aimed at enhancing financial intermedation in the economy and improve liquidity position of Commercial banks.
1995 Aug: The liquid asset ratio was abolished with effect from August 24.
1995 Aug: Beginning 23rd August, the requirement that banks and financial institutions should maintain liquidity assets not less than 20 percent of shillings deposit liabilities and borrowing from the public and other demand liabilities was lifted. Banks and financial institutions were required to maintain adequate liquid assets for meeting their normal requirements and the demands of their depositors and creditors.
1995 Aug: On 4th August, the Tanzania Housing Bank's (THB) Board of Directors, under section 27(1) of the Act No. 34 of 1972, which established that bank, decided to wind up the operations of the bank, putting the bank under liquidation.
1995 Aug: Beginning 1st August 1995, all banks and financial institutions were required to publish quarterly financial statements and audited annual financial statements in newspapers that circulate widely in Tanzania.
1995 Jul: The Bank of Tanzania Act (1995), became effective on July 1. The Act was passed by the National Assembly on February 17, 1995 empowering the BOT with a single policy objective of price stability
1995 Jun: Effective June 1, the Minimum Reserve Requirement was increased from 15.0 percent to 18.0 percent (all deposit liabilities, excluding foreign currency deposits); vault cash counts towards meeting the Minimum Reserve Requirement.
1995 Apr: On 1st April, the Bank of Tanzania took over the management of Meridien Biao Bank Tanzania Limited (MBBTL), following the financial problems facing the Meridien Group.
1995 Mar: On March 8, the Capital Market and Securities Authority was inaugurated by the Finance Minister, Hon. Jakaya Kikwete, at BOT Headquarters
1995 Jan: On January 25, the Bank of Tanzania introduced the TZS 10,000 and TZS 5,000 notes.
1995 Jan: Effective January 2, the Minimum Reserve Requirement was increased from 12.0 percent to 15.0 percent (all deposit liabilities, excluding foreign currency deposits); vault cash counts towards meeting the Minimum Reserve Requirement.
1994 Dec: The surrender requirement on earnings on coffee exports was lifted.
1994 Dec: The 35-day Treasury Bill were discontinued from Treasury Bill Auctions; with effect from 7 Dec.
 1994 Dec: On December 14, 364-day Treasury Bill was introduced in Treasury Bill Auctions.
1994 Oct: Effective October 28, calculation of the Discount Rate was determining on the basis of the weighted average of T-Bill Auction yields for all maturities.
1994 Sep: Effective September 1, the Minimum Reserve Requirement was increased from 8.0 percent to 12.0 percent (all deposit liabilities, excluding foreign currency deposits); from that date, vault cash was included in determining the Minimum Reserve Requirement.
1994 Aug: The minimum interest rate on 12 month fixed deposits was abolished. Before, the rate had to be positive in real terms.
1994 Jun: On June 20, the daily Inter Bank Foreign Exchange Market was introduced to replace the weekly foreign exchange auctions.
1994 Jun: As part of the foreign exchange policy, surrender requirements on proceeds from traditional crops (except coffee) were abolished.
1994 Apr: Effective April 1, the Minimum Reserve Requirement was decreased from 10.0 percent to 8.0 percent (all deposit liabilities, including, for the first time, foreign currency deposits).
1994 Feb: On February 3, 182-day Treasury Bill was introduced in the Treasury Bills Market.
1994 Jan: On January 27, the Discount Rate, the rate at which the BOT accommodates commercial banks on short-term basis, wasincreased, effective January 27, from 27.0 percent to 50.0 percent per annum. Thereafter, the rate, was to be adjusted biweekly, on the basis of marginal yields in the auctions of the 91-day Treasury Bill.
1994 Jan: The Capital Market and Securities Act was enacted.
1993 Dec: On December 1, to restrain credit expansion, the BOT raised the Minimum Reserve Requirement from 4.0 percent to 10.0 percent, (all deposit liabilities, excluding foreign currency deposits), effective December 1. The reserve requirement earlier had earlier in 1993, been raised from 3.0 to 4.0 percent.
1993 Sep: On September 2, 35-day Treasury Bill was introduced for Treasury Bill Auctions.
1993 Aug: On August 5, the Bank of Tanzania commenced Treasury Bill Auctions with 91-day Bills on the 5th of August, as a tool for financing short term government debt, an instrument of liquidity management, and as a reference point for the determination of market interest rates.
1993 Aug: On August 2, the exchange rate system was tied to the official exchange rate set at the level of the weighted average Bureaux rate.
1993 Aug: On August 1, there was a unification of Bureaux and official exchange rates undertaken by the Bank of Tanzania. Thereafter, forex auctions were extended to also include commercial banks.
1993 Jul: On July 1, the BOT removed the maximum lending rate of 31.0 percent for commercial banks as a step towards the liberalization of interest rates.
1993 Jul: The Bank of Tanzania began the auctioning of foreign exchange as a tool for both liquidity management and the determination of market-based exchange rates.
1993 Jun: Abolition of surrender requirements on non-traditional exports.
1993 Jun: Issuance of BOT certificates of deposit as part of a contractionary monetary policy.
1993 Apr: Inception of the Bureaux de Change markets as an effort of foreign exchange liberalisation.
1993: Import licensing was abolished, except for those goods on the required to fill the Import Declaration Form for statistical and customs clearing purposes. The requirement for exporters to register with the BOT and to obtain a licence from the Board of External Trade was eliminated. The list of goods subject to export permits by individual ministries was cut sharply to only those, which the government wishes to control for the purpose of preserving Tanzania's national heritage.
1992 Mar: Enactment of the Foreign Exchange Act, 1992, replacing the Exchange Control Ordinance (which was not compatible with the dynamic macroeconomic policies adopted under ERP). Individuals were allowed to hold foreign currency and maintain foreign exchange accounts at commercial banks within Tanzania.
1986 Jul: The government launched a comprehensive Economic Recovery Programme (ERP) to:
a) improve macroeconomic management
b) tackle the underlying structural weaknesses and
c) encourage more active private sector participation in the economy. The programme involved policies designed to: i) increase output; ii) reduce inflation and ii) improve balance of payments.
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