Tanzanian banks are encouraging their customers to make a transition to electronic payments and online banking in an effort to minimize potential disruptions in financial services during the upcoming rainy season.
The rains are expected to be heavier than usual due to the El Niño climate phenomenon, which occurs roughly every two to seven years and has a global impact on weather patterns.
The Tanzania Meteorological Authority has warned that El Niño could disrupt the upcoming short rainy season, which typically occurs from October to December. El Niño tends to result in flooding in northern regions, while some parts of the south receive less rainfall than usual.
The central bank has expressed concerns about the potential consequences of these weather patterns on vital sectors of the economy. It has also advised financial institutions to raise transaction limits for customers and obtain insurance coverage for loans provided to clients.
Additionally, the country’s disaster unit has recommended that residents in lowland areas consider relocating in preparation for possible flooding.