Tanzania, April 22 -- Dar es Salaam. Tanzania's banking sector faces growing vulnerability to climate change, with risks concentrated in loan portfolios and collateral tied to climate-sensitive sectors, a new report by the Bank of Tanzania (BoT) shows.

The Climate Risk Analysis in the Banking Sector report, released in March 2026, warns that while current exposure to climate hazards remains relatively low, the financial system is increasingly susceptible to shocks from droughts, floods and other extreme weather events.

The findings indicate that banks' exposure stems largely from the geographic concentration of loans and collateral in economically active areas, where climate disruptions could have outsized financial consequences.

Accor...