The emergence of corporate governance
has tremendously improved the business working environment since its inception
in the world, and in Tanzania, in particular. The dramatic change of social and
economic environment is the fruits of the development of corporate governance
around the world. The concept of corporate governance has attracted
researchers’ attention over the last twenty years due to several factors which
include the widespread of capitalism and the rapid speed of privatization; the
growth of companies; deregulation, and the integration of capital markets and
globalization; pension fund reforms and the growth of private savings;
shareholder activism. Among the areas in the Tanzanian financial markets whose
corporate governance contribution cannot be left unnoticed is the financial
sector. During the last decade financial sector in Tanzania, particularly
banking sector, has witnessed rapid changes in the socio- economic and
technological settings which impacted on economic, financial and business
environments. It is, therefore, apparent that financial institutions and banks
in Tanzania are facing exponential increase in business potentials and
opportunities. The current experience shows that attaining a sustainable
maturity of banking system is not only favourable to the banking institutions
but also to the improvement of the whole business and economic environment. The
range of innovative banking products and other financial products that are
constantly being designed to consider the increased customer needs clearly
indicates the changes that the financial sector has gone through during the
last decade.
However, the successful banking product
innovation is believed to be a function of better banking regulatory
environment and sustainable banking systems accompanied with the good Corporate
Governance practices. While many banking regulations have been launched in the last
decade and some reviewed recently, there have also been several emerging
banking developments and Corporate Governance practices improvement during the
same period. This book will be one of the important references for researchers
who focus their work on the governance of financial sector in Tanzania. The
book specifically provides a comprehensive review of Corporate Governance
practices in Tanzania and recent emerging issues in the Tanzanian financial
sector.
Generally, the book is subdivided into
eight chapters. The chapters in this book include; first, the Overview of
Corporate Governance in Tanzania where theoretical background of Corporate
Governance is presented; the second chapter describes the Corporate ownership
and control in Tanzania where ownership structure and shareholders’ control in
Tanzania are highlighted, the theoretical perspective of agency conflict
between minority and majority shareholders is presented, the shareholders’
protection mechanisms in Tanzania are discussed in detail and compared with the
OECD principles as the best practice. Finally, the chapter ends by evaluating
the level of shareholders’ protection in Tanzania. Chapter three follows where
the details of corporate board control and effectiveness in Tanzania are presented.
This includes the role of corporate board, theories governing the board of
directors, and both board independence and board size are also the part of
discussions in chapter three.
In chapter four the public procurement compliance is detailed to emulate the role of corporate governance in the public procurement process. The chapter highlights the evolution of public procurement in Tanzania as a result of the corporate governance development; the concept of public procurement as the tool of Corporate Governance; principles of public procurement, and finally detailed assessment of the public procurement compliance level of selected 90 public institutions including 47 Local Government Authorities (LGAs) and 43 Other Government Institutions such as Government Agencies.
In chapter five, Corporate Governance
of Banking Institutions is discussed where best corporate practices for banks
are highlighted; corporate governance guidelines for banks detailed and finally
Corporate Governance of selected listed banks in DSE analysed.
Furthermore, chapter six covers banking
regulatory environment and access to financial services in Tanzania. In this
chapter Tanzanian banking regulatory environment is highlighted; dimensions of
financial inclusion are discussed followed by assessment of the landscape of
financial services in Tanzania and, finally the barriers of access to finance
are described.
In chapter seven the Mobile Money and
Mobile Banking services in Tanzania are described where five sections are
included which are; Evolution of Mobile Money and Mobile Banking, the
Regulatory Framework of Electronic Payments in Tanzania, the Regulatory
Framework for Mobile money and Mobile Banking Services in Tanzania.
Finally, chapter eight describes bank capital and regulatory framework in Tanzania which details the Arguments in favour of Capital Requirements, describes Capital Regulation Standards According to Basel Accords and closes the discussions by evaluating the Bank Capital Regulatory Environment in Tanzania.
Author(s) Details
Josephat Daniel Lotto
Department of Accounting and Finance, The Institute of Finance Management, Tanzania.
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