Why is Financial Services so important in a country like Tanzania?

Firstly; where is Tanzania located?

Located in the continent of Africa, Tanzania covers 885,800 square kilometers of land and 61,500 square kilometers of water, making it the 31st largest nation in the world with a total area of 947,300 square kilometers.

Tanzania became an independent state in 1961, after gaining its sovereignty from The United Kingdom. The population of Tanzania is 43,601,796 (2012) and the nation has a density of 49 people per square kilometer.

The currency of Tanzania is the Tanzanian Shilling (TZS). As well, the people of Tanzania are referred to as Tanzanian.

The dialing code for the country is 255 and the top level internet domain for Tanzanian sites is .tz.

Tanzania shares land borders with 8 countries: Mozambique, Zambia, Rwanda, Burundi, Kenya, Uganda, Democratic Republic of the Congo, Malawi.

FACTS ABOUT TANZANIA

COUNTRY NAME	Tanzania
CONTINENT	Africa
CAPITAL	Dodoma
LARGEST CITY	Dares Salaam
AREA	947,303 km2 (365,756 sq. mi) Water (%) 6.4
POPULATION	50.76 million (2014 estimate)
LAT LONG	6° 18′ 25.2″ S, 34° 51′ 14.4″ E
OFFICIAL LANGUAGE	Swahili, English
CALLING CODE	+255
TIME ZONE	EAT (UTC+3) Summer (DST) not observed (UTC+3)
AIRPORT	26 Airports
NEIGHBOUR COUNTRIES	Kenya, Uganda, Burundi, Democratic Republic of the Congo, Zambia, Mozambique, Rwanda, Malawi
INTERNET TLD	.tz
CURRENCY	Tanzanian shilling (TZS)

WHY IS FINANCIAL SERVICES IMPORTANT IN TANZANIA?

Financial services are a part of a financial system, which provides different types of financing through credit institutions, financial services, and financial products. The presence of financial services is very important to countries like Tanzania, as it enables the country to improve its economic conditions. This is due to creating more production and jobs in nearly all sectors in the country, causing economic growth. 

WHY IS ECONOMIC GROWTH NEEDED?

Economic growth has the benefit of making people have the money to be able to enjoy a higher standard of living. Having financial services in place enables people to acquire or obtain various consumer products that will help them use their money to the maximum benefit. In the process of people using financial services, the financial institutions promote production, investments, and saving.

HOW IMPORTANT ARE FINANCIAL SERVICES TO TANZANIA

The first reason the financial services is so important to Tanzania is that it creates a large demand for both producers and products. This is due to the higher demands from the consumer since they have more free money. As the demand rises, financial services are needed to help create and support the producers who help raise the capital. 

Financial services will many times include the stock market; with helps bring in more funds for the investors. They can also allow investments for other countries to help create more business with the home country. This allows the producers to sell their items both locally, and to the foreign markets, along with being able to acquire the technology that they need to create more products.

FINANCIAL SERVICES PROMOTE SAVINGS

Mutual funds are a part of financial services, along with other saving service where people have the option to save their money. In many cases, there are options that are made available to pensioners and aged people, so they are able to get a reasonable return on investments without having a huge risk. 

For people who want to invest in the growth of their saving, there are financial services that allow the reinvestment of the money. Many governments have laws that regulate these financial services so that the consumers are highly protected. 

FINANCIAL SERVICES MINIMISE THE RISKS

There are risks for both the financial facilities and the producers, which are minimized since there is usually an insurance company involved. Many types of risk are covered by the insurance companies, like the business market conditions and protection from natural disasters. 

Insurance is not only used as a source of finance and a way to minimize the risk for financial services, it also used a source of savings. Many financial institutions will have very large insurance policies, and will add to them to make sure that their money is safe. 

FINANCIAL SERVICES MAXIMIZE THE RETURNS

The presence of financial services allows businessmen to maximize their returns. This is due to the raised amounts of credit at reasonable rates. Many producers are able to get credit from a number of financial services, which allows them to lease or buy assets that they need for their business. In turn, they are able to increase turnover, and profits.