History of Banking in Tanzania and East Africa (NOTES)

This post covers the History of Banking in Tanzania and East Africa at large.

here you will see

• The history of banking in Tanzania before colonialism
• The history of bank in Tanzania During colonialism
• The history of banks in Tanzania after independence

Let’s get started

The history of banking in Tanzania before colonialism

The history of the banking business in Tanzania and East Africa at large can be traced far back before colonialism.

Nature of the economy

The economies of East Africa before the advent of Colonialism were characterized by a subsistence economy, there was petty commodity production, and in some areas, there was trade due to Arab Influence commonly known as the “East African Long-distance trade.”

Emergence of banking Practice

Owing to the blooming of Trade and Commerce in the Eastern part of Africa, some banking practices had begun by the mid 19th Century, and developed in the dominions of the Sultan of Zanzibar in East Africa.

In Tanzania, this development began in 1840 when the Oman Arabs moved their capital from Muscat to Zanzibar and took control there.

Gradually Zanzibar’s commercial prosperity grew un-waveringly, with the township becoming a central point in the region.

The first bank in East Africa

The first bank in East Africa was established in Zanzibar known as The Credit Bank.

In some other towns one could find money, for example, the Sultan of Kilwa minted money (copper coins) but the use of money was not widespread.

Due to trade connections with India, the Indian Rupee was in use in Tanganyika, Kenya, and Uganda.

However commercial banks could not emerge in the East African economies since they were imposed by the colonial masters.

The history of bank in Tanzania During colonialism

With the coming of colonialism in East Africa, the business of banking expanded to greater heights.

Banks in Tanganyika

In Tanganyika by 1905 two banks were established Deutch-Ostafrikanische bank in Dar es Salaam and, in 1911, Handlesbank fur Ostafrica in Tanga.