A major commercial bank in the country is reported to have pumped 13.7trn/- into East African economies since starting to expand beyond our borders.

While these figures belong to one bank, they could scarcely have been achieved outside a wider operational set-up whose results they more or less reflect, despite variations in the margins of share price or profit uplift obtained by different banks.

But it could be safely assumed that their results were by and large similar, within a specific range of share value increase and overall profit margins, etc. The performance is thus a window into the financial system and, implicitly, a barometric expression relating to economic realities.

The specific data were taken from records of the bank’s strong performance in the capital markets, where its share price rose by over 300 per cent to about 2,940/- in the past few months – from 670/- in 2024. 

The data explain that this upshot translated into a market capitalisation of up to 7.5trn/-, marking especially energetic growth of the country’s financial sector, given that major commercial banks here have repeatedly won awards at the regional and semi-emerging markets levels.

Actually seeing such figures enables doubting Thomases to believe the citations as actually representing feelings in the sector cast far afield from here.

It is not easy to say how many of those who read newspapers – as these aren’t the sort of figures or data to be broadcast on radios or routine television – will be in a position to appreciate the meaning or impact of these trends or figures.

That is to say what the statistics actually represent, though in actual fact it smacks of a revolution in the making in the wider economy. 

There is a macroeconomic ‘quantitative easing’ in that the economy is awash with money and, since it can’t just be directed to credit, there will be plenty of property purchasing.

And so that the money draws some profit, it will be vital for a good portion of it to be loaned to fruitful projects or those without undue repayment risks – and, to be sure, public works can gain plenty with the right PPP conditions.

What is also indicative of what is happening on the ground is where the money comes from, the sort of Diaspora that is not transferring a substantial part of its savings to Tanzania as a low-cost economy with a fairly enhanced workforce and boasting a growing market.

Those who rushed in at that time may have spent too much and reaped too little, hence finally deciding – or forced – to closed shop, and that including one or two South African and Kenyan supermarkets. Current investors are much closer to reality than obtained those days.

In a sense, Tanzania will also likely gain from tensions in the Middle East, as vast worries on the part of its Gulf Diaspora are translated into shifting auxiliary funds from their immediate spheres to next-door offshore markets like Mauritius, now a leading source of foreign direct investment flows for us.

We are additionally told that The UK and South Africa aren’t far behind, while the Chinese are busy setting up shop everywhere. That is good – and it has crucial lessons for us.