Tanzania Interest Rate Spread
Interest rate spread (lending rate minus deposit rate) FR.INR.LNDP
Tanzania's interest rate spread was 10.00% in 2020, ranked 88th globally. This represents a 1.3% increase from 2019. Data from World Bank, covering 1992–2020.
Overview
Tanzania's interest rate spread stood at 10.00% in 2020, a rise of +0.13pp from 2019. Tanzania ranked 88th globally.
Tanzania’s interest‑rate spread, measured as the gap between lending and deposit rates, stood at 10.00 % in 2020, placing it 88th in the world. The spread widened to an all‑time peak of 20.37 % in 1996 before narrowing dramatically to a trough of 5.46 % in 2016, reflecting periods of monetary tightening and subsequent liberalisation of the banking sector. Over the 29‑year series, the spread has hovered around the high‑single‑digit to low‑teens range, comparable to peer economies such as Jamaica (9.60 %) and Paraguay (10.17 %). The persistence of a relatively wide spread suggests that credit risk premia and limited competition among lenders remain structural features of Tanzania’s financial market. Continued deepening of financial inclusion, reforms to strengthen credit information systems, and greater foreign bank participation could compress the spread further, steering the indicator toward the lower end of the regional spectrum.
Data & projection
| Year | Interest Rate Spread | YoY change | Rank |
|---|---|---|---|
| 2020 | 10.00% | +0.13pp | #88 |
| 2019 | 9.87% | +0.65pp | #90 |
| 2018 | 9.21% | +2.63pp | #88 |
| 2017 | 6.59% | +1.13pp | #72 |
| 2016 | 5.46% | −0.74pp | #60 |
| 2015 | 6.21% | −0.23pp | #64 |
| 2014 | 6.44% | +0.54pp | #73 |
| 2013 | 5.89% | −0.12pp | #65 |
| 2012 | 6.01% | −2.17pp | #64 |
| 2011 | 8.18% | +0.26pp | #87 |
| 2010 | 7.92% | +0.86pp | #82 |
| 2009 | 7.06% | +0.33pp | #76 |
| 2008 | 6.73% | −0.66pp | #75 |
| 2007 | 7.39% | −1.53pp | #80 |
| 2006 | 8.93% | −1.59pp | #96 |
Detected Pattern
Analysis
Tanzania matched the Orthodox Tightening Cycle pattern in 2012. Historically, 57% of countries showing this pattern (177 out of 311) saw interest rate spread improve within 24 months. View full analysis →
Frequently Asked Questions
Tanzania's interest rate spread was 10.00% in 2020. Ranked 88th globally. This represents a 1.3% increase from the previous year.
Tanzania's interest rate spread peaked at 20.37% in 1996.
The lowest interest rate spread in Tanzania was 5.46% in 2016.
Tanzania ranks 88th globally in interest rate spread as of 2020.
The World Bank indicator code is FR.INR.LNDP. Data sourced from World Bank.
The interest rate spread of Tanzania in 2020 was 10.00%. This ranks 88th in the world.
Cite this page
@misc{historysaid_tanzania_interest-rate-spread,
title = {Tanzania Interest Rate Spread},
url = {https://historysaid.com/tanzania/interest-rate-spread/},
publisher = {HistorySaid},
year = {2026}
}