Tanzania Commercial Bank (TCB), with its roots stretching back a century, is undergoing a significant transformation. Established in 1925 during the colonial era, the bank initially focused on cultivating a saving culture. Post-independence, TCB became part of the Tanzania Post and Telecommunication Company Ltd and has continuously evolved to meet the changing economic landscape. Today, TCB stands as a fully sovereign bank, deeply intertwined with the Tanzanian government’s strategic objectives. This alignment has enabled TCB to play a crucial role in financing landmark infrastructure projects, supporting commodity and goods flows, and aiding the growth of small and medium-sized enterprises (SMEs).
Adam Mihayo, the Managing Director and CEO, and Jessica Mizambwa, Chief Manager of Trade Finance and Transactional Banking at TCB, highlight the bank’s journey and its strategic focus on trade finance. The bank’s centenary is not just a celebration of its past achievements but a reflection of its ongoing transformation.
As the only fully sovereign bank in Tanzania, TCB’s distinction is not merely symbolic. It is a testament to its commitment to contributing to the nation’s socio-economic development. The bank is currently involved in various projects that target vital sectors such as infrastructure, clean water access, sanitation, and agriculture. These efforts are part of a broader strategy to diversify and mitigate systemic risks within the Tanzanian banking sector.
A significant milestone in TCB’s trade finance journey is its involvement in financing the Tanzanian Standard Gauge Railway. The project connects Dar es Salaam to Dodoma, linking key economic hubs. Over three years, TCB provided approximately US$200 million in financing, supporting every stage of the supply chain. This comprehensive support underscores TCB’s capabilities in delivering tailored trade finance solutions, affirming its position as a key player in infrastructure financing.
The bank’s strategic plan is focused on five key areas. First, transforming its balance sheet to better support SMEs, which constitute a significant portion of Tanzania’s business landscape. Second, a digital transformation to enhance service accessibility and operational efficiency. Third, brand repositioning to align with its evolving identity. Fourth, strengthening risk management to ensure sustainable growth. Lastly, a people strategy that emphasizes high morale and best practices within the leadership team.
TCB is also looking to build partnerships with other financial institutions, including correspondent banks and development finance institutions (DFIs). These partnerships are essential for expanding TCB’s network and enhancing its trade finance capabilities. Given Tanzania’s role as a net importer with significant export flows, maintaining strong relationships with banks in key international markets is crucial.
The trade finance market in Tanzania presents numerous opportunities for TCB. The country’s strategic geographical position, coupled with its abundant natural resources, makes it a vital trade hub in East Africa. By leveraging these opportunities, TCB aims to facilitate smoother international trade and strengthen its market presence. The bank’s growth metrics for the year 2025 are already reflecting positive outcomes from these strategic initiatives.
Note: This article is inspired by content from https://www.gtreview.com/news/contributed-content/industry-perspectives-transforming-trade-finance-in-tanzania/. It has been rephrased for originality. Images are credited to the original source.