Getting banks ready for an El Niño
The Tanzania Meteorological Authority has warned of a strong El Niño weather system expected to bring heavy rains from late 2026 through early 2027. Financial institutions are being urged to prepare for potential economic impacts, particularly regarding non-performing loans in the agricultural and construction sectors.
Why it matters
Climate-driven weather events pose systemic risks to developing economies, threatening both physical infrastructure and financial stability.
DAR ES SALAAM: THE Tanzania Meteorological Authority (TMA) has not minced its words.
Dr Ladislaus Chang’a, the agency’s Director General, has described the El Niño now forming over the Indian Ocean as “very strong”, warning that this year’s Vuli rains, expected to begin in late September or early October, intensify through November 2026 and persist into January 2027, will be shaped by the weather system.
The northern coastal belt, Lake Victoria basin, northeastern highlands and parts of Kigoma have been identified as among the areas most exposed.
President Samia Suluhu Hassan has already ordered regional and district authorities to prepare, warning that delays “could result in significant damage to lives, property and infrastructure.”
For disaster-management officials, that warning triggers a familiar checklist: Drainage, evacuation routes, health supplies and hydropower safeguards. For commercial banks and Development Finance Institutions (DFIs), it should trigger an equally urgent one.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in