Risk premium on lending (lending rate minus treasury bill rate, %) in Tanzania
Tanzania: Risk premium on lending (lending rate minus treasury bill rate, %) was 12.3% in 2020. ◆ Volatile
Risk premium on lending in Tanzania, 1993–2020
Source: International Financial Statistics database, International Monetary Fund (IMF). Measured in lending rate minus treasury bill rate, %.
Analysis
The most recent figure for risk premium on lending in Tanzania is 12.3%, measured in 2020.
Compared with earlier readings it is up 32.3% on the previous year and up 25.2% over ten years.
Over the whole period, risk premium on lending in Tanzania peaked at 18.7% in 1996 and was at its lowest, -6.6%, in 1993.
Tanzania ranks 8th of 86 countries on this measure, in the top 10%.
The series is highly variable year to year, so single readings are best treated with caution.
Risk premium on lending (lending rate minus treasury bill rate, %) in Tanzania, year by year
| Year | lending rate minus treasury bill rate, % | Change |
|---|---|---|
| 1993 | -6.6% | — |
| 1994 | -0.7% | -89.9% |
| 1995 | -2.5% | +276.3% |
| 1996 | 18.7% | -838.6% |
| 1997 | 16.7% | -10.7% |
| 1998 | 11.1% | -33.7% |
| 1999 | 11.8% | +7.1% |
| 2000 | 11.8% | -0.4% |
| 2001 | 15.8% | +34.4% |
| 2002 | 12.9% | -18.8% |
| 2003 | 8.3% | -35.8% |
| 2004 | 5.8% | -29.9% |
| 2005 | 4.6% | -20.9% |
| 2006 | 4.0% | -12.4% |
| 2007 | 2.7% | -33.0% |
| 2008 | 6.9% | +155.6% |
| 2009 | 7.9% | +14.8% |
| 2010 | 9.8% | +24.1% |
| 2011 | 6.7% | -32.1% |
| 2012 | 1.9% | -71.3% |
| 2013 | 1.6% | -14.1% |
| 2014 | 2.7% | +66.2% |
| 2015 | 3.2% | +17.1% |
| 2016 | -0.2% | -106.8% |
| 2017 | 6.7% | -3190.7% |
| 2018 | 11.0% | +64.7% |
| 2019 | 9.3% | -15.7% |
| 2020 | 12.3% | +32.3% |
Tanzania compared with similar countries
- Tanzania's 12.3% is above the median for lower middle income countries, which is 3.5%, 3.5× the median. (20 countries reporting)
- Tanzania's 12.3% is above the median for Sub-Saharan Africa, which is 5.7%, 2.1× the median. (22 countries reporting)
Biggest year-on-year movements
Years where Risk premium on lending (lending rate minus treasury bill rate, %) in Tanzania changed far more than this series normally does. A large move can be a real event or a change in how the figure was measured — the source note below says who published it.
| Year | Change | From | To |
|---|---|---|---|
| 2017 | +3190.7% | -0.2% | 6.7% |
| 1996 | +838.6% | -2.5% | 18.7% |
| 1995 | -276.3% | -0.7% | -2.5% |
Averages by decade
| Decade | Average | Lowest | Highest | Years |
|---|---|---|---|---|
| 1990s | 6.9% | -6.6% | 18.7% | 7 |
| 2000s | 8.1% | 2.7% | 15.8% | 10 |
| 2010s | 5.3% | -0.2% | 11.0% | 10 |
| 2020s | 12.3% | 12.3% | 12.3% | 1 |
Countries ranked near Tanzania
- 5 Sierra Leone 19.5% compare
- 6 Laos 14.6% compare
- 7 Mauritania 12.3% compare
- 9 Kyrgyzstan 10.6% compare
- 10 Uganda 10.0% compare
- 11 Rwanda 8.4% compare
More financial sector data for Tanzania
- Reserve position in the IMF, US dollar, annual growth rate 5.01 % change on previous year (2025)
- Reserve position in the IMF, US dollar, per unit of GDP 0.0009 units per US$ of GDP (2025)
- Reserve position in the IMF, US dollar, per capita 1.16 units per person (2025)
- Reserve position in the IMF, SDR, annual growth rate 0 % change on previous year (2025)
- Reserve position in the IMF, SDR, per unit of GDP 0.0007 units per US$ of GDP (2025)
- Reserve position in the IMF, SDR, per capita 0.8467 units per person (2025)
- Reserve tranche position, US dollar, annual growth rate 5.01 % change on previous year (2025)
- Reserve tranche position, US dollar, per unit of GDP 0.0009 units per US$ of GDP (2025)
- Reserve tranche position, US dollar, per capita 1.16 units per person (2025)
- Reserve tranche position, SDR, annual growth rate 0 % change on previous year (2025)
Frequently asked questions
- What is risk premium on lending in Tanzania?
- Risk premium on lending in Tanzania was 12.3% in 2020, according to International Financial Statistics database, International Monetary Fund (IMF).
- What is the highest risk premium on lending recorded in Tanzania?
- The highest recorded value was 18.7% in 1996.
- What is the lowest risk premium on lending recorded in Tanzania?
- The lowest recorded value was -6.6% in 1993.
- How does Tanzania rank for risk premium on lending?
- Tanzania ranks 8th out of 86 countries with data for 2020.
- Is risk premium on lending rising or falling in Tanzania?
- Over the last ten years it is up 25.2%. The long-run trend across the full record is volatile.
- Where does this Tanzania data come from?
- The figures come from International Financial Statistics database, International Monetary Fund (IMF), published as part of Risk premium on lending (lending rate minus treasury bill rate, %). Statizoid updates them automatically from the source API.
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About this data
Risk premium on lending is the interest rate charged by banks on loans to private sector customers minus the "risk free" treasury bill interest rate at which short-term government securities are issued or traded in the market. In some countries this spread may be negative, indicating that the market considers its best corporate clients to be lower risk than the government. The terms and conditions attached to lending rates differ by country, however, limiting their comparability.