Challenge
Despite progress in expanding financial inclusion in Tanzania, gender disparities remained pronounced in the leadership structures of banks and financial institutions. According to a study by the Bank of Tanzania:
- The Men to Women ratio for Boards of Directors was 75:25; and for Senior Management of Banking Institutions was 70:30.
- Some financial institutions had no women at all serving on their boards.
- Existing governance practices lacked systemic mechanisms to foster or track gender diversity.
This imbalance posed both an ethical and economic challenge.
Approach
In August 2024, the Bank of Tanzania issued an official directive to all banks and financial institutions titled Strengthening Gender Representation and Inclusivity in Leadership Roles for Banks and Financial Institutions. The circular set out a clear expectation: all institutions must work toward ensuring that at least one-third of their board members are women, affecting all of Tanzania’s IPS (TIPS) participants.
To achieve this, the central bank called on institutions to revise core governance documents—including board composition policies, the Directors Competence Matrix, and board charters—to explicitly reflect gender equity goals. Succession planning processes must also be adapted to identify and cultivate a pipeline of qualified women candidates for board and executive roles, aligning leadership development with long-term institutional strategy.
In addition to structural reforms, the directive emphasized the need for inclusive operational practices. Financial institutions were instructed to develop leadership development and career progression programs that specifically support women, and to ensure that recruitment, mentorship, and promotion practices foster equity at all levels.
Institutions were given six months to submit implementation plans to the Bank of Tanzania, with full compliance—including achieving the one-third female board representation target—expected within 36 months. The central bank committed to monitoring progress, providing technical guidance and best practices, and recognizing institutions that show leadership in advancing gender diversity across the sector.
The driving force behind this circular was from a larger National Gender Policy that is streamlining gender equality into government and private sector. It is led by the President, in collaboration with the Ministry of Gender in a leadership role.
Edmund Mbokosi, Bank of Tanzania
It is worth noting that the impetus for the circular came from a broader government focus on women’s inclusion, which itself was spearheaded by the country’s female president. The demonstrates the value of high-level support for women’s initiatives, whether from women or their allies.
Results
As of early 2025, the initiative is in its early stages of implementation, with initial responses and plans due to the central bank within six months of the circular.
Stated goals include:
- Improved gender balance across financial sector governance within the next 2–3 years.
- A formalized pathway for identifying and advancing women leaders in the financial ecosystem.
- Increased sector-wide accountability, with BoT playing an active monitoring and support role.
- Alignment with broader national and international development goals around inclusive economic growth and gender equity in finance.
Though full results will become clearer after implementation deadlines pass, this directive positions Tanzania as a regional leader in embedding gender equity into financial sector governance through concrete targets, timelines, and regulatory oversight.