Money Words: A Plain-Language Financial Dictionary
This dictionary explains common money words in plain English for readers in Tanzania. Each entry stands alone, so you can open the exact term you need. Examples use Tanzanian shillings and are illustrations, not current product prices or promised returns. Every hard figure on the site names its source — see where we get our numbers.
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APR
APR means annual percentage rate. It expresses the cost of borrowing over a year and may include interest plus specified compulsory charges, making loans with different terms easier to compare. Ask what is included because a headline interest rate and APR are not always the same.
| One-year illustration | Amount |
|---|---|
| Money received | 100,000 TZS |
| Interest and required charges | 20,000 TZS |
| Total repayment | 120,000 TZS |
Auction
An auction is a process for receiving offers and deciding who buys an asset. The Bank of Tanzania uses auctions when issuing government securities, with bidders stating an amount and sometimes a price.
Bank of Tanzania (BoT)
The Bank of Tanzania is the country’s central bank. It manages monetary policy and regulates areas including banks, payment systems, microfinance and approved digital lenders. BoT also issues government securities on behalf of the Government.
Bond
A bond records a loan made to a government, company or other issuer. The issuer agrees to return the borrowed amount at a stated date and may make scheduled interest payments before then. A bond can lose value if sold before that date.
BRELA
BRELA is the Business Registrations and Licensing Agency. BRELA registers companies, business names and intellectual-property rights, and issues specified business and industrial licences. BRELA registration is not permission to provide a regulated financial service.
Broker
A broker arranges a purchase or sale for a client. In Tanzania’s capital market, check a local securities broker in the CMSA register before dealing. A broker charges for its service and does not guarantee that an investment will gain value.
Capital Markets and Securities Authority (CMSA)
CMSA regulates Tanzania’s capital markets. It licenses local brokers, investment advisers and fund managers, and supervises the stock exchange and other market participants.
CDS account
A Central Depository System account is the electronic record showing which securities you own. It is not a bank account and does not hold your spending money. Learn more in How to Open a CDS Account in Tanzania.
Collateral
Collateral is property pledged to support a loan. If the borrower does not repay as agreed, the lender may have a legal right to take or sell that property.
Compound interest
Compound interest means later interest is calculated on the earlier balance plus interest already added. It can increase savings or debt faster than simple interest. This illustration uses a hypothetical 10% yearly rate.
| Year | Starting balance | Interest added | Ending balance |
|---|---|---|---|
| 1 | 100,000 TZS | 10,000 TZS | 110,000 TZS |
| 2 | 110,000 TZS | 11,000 TZS | 121,000 TZS |
Coupon
A coupon is the stated interest payment on a bond. It is usually described as a yearly percentage of the bond’s face value, even when payments arrive more often.
| Hypothetical bond | Amount |
|---|---|
| Face value | 1,000,000 TZS |
| Two half-year payments | 50,000 TZS each |
| Total coupon paid in one year | 100,000 TZS |
CRDB
CRDB usually means CRDB Bank Plc, a commercial bank incorporated in Tanzania. According to its official terms, it is regulated by BoT and listed on the DSE. It is a financial business, not a regulator; inclusion here is not a recommendation.
Credit reference bureau
A credit reference bureau collects permitted information about how people and businesses handle credit. Lenders use credit reports when assessing a loan application.
Cross-listing
Cross-listing means a company’s securities are listed on more than one exchange. This can let investors in different markets trade an interest in the same company.
Dar es Salaam Stock Exchange (DSE)
The DSE is Tanzania’s securities exchange. It provides a regulated market where listed shares and bonds can be bought and sold through authorised participants.
Default
Default means failing to meet an obligation in a loan or investment agreement. It may happen when a payment is missed or another important term is broken. Consequences can include penalties, collection action, loss of collateral or a negative credit record.
Diversification
Diversification means spreading money across different holdings instead of depending on one. A loss in one holding may then have less effect on the whole portfolio. It reduces some risks but cannot remove every risk or guarantee a profit.
Dividend
A dividend is money a company chooses to distribute to shareholders, usually from available profits. A company is not required to pay the same dividend every year and may pay none.
| Illustration | Amount |
|---|---|
| Shares owned | 100 |
| Dividend declared per share | 50 TZS |
| Total dividend | 5,000 TZS |
Equity
Equity means ownership. A share gives its holder a small equity interest in a company. The word can also mean the value left in an asset after related debt is deducted.
Exchange-traded fund (ETF)
An ETF is a pooled investment whose units trade on an exchange like shares. It may hold many shares, bonds or other assets under one set of rules. Availability, fees and risks depend on the particular market and fund.
Face value
Face value is the amount printed or recorded as the basic value of a bond or other security. For a bond, it is normally the amount the issuer promises to repay at maturity.
| Bond illustration | Amount |
|---|---|
| Face value repaid at maturity | 1,000,000 TZS |
| Possible market price before maturity | 950,000 TZS |
Fee
A fee is a separate charge for a service or transaction. It may be deducted before money reaches you, so compare the amount stated with the amount actually received.
| Loan illustration | Amount |
|---|---|
| Stated loan | 100,000 TZS |
| Fee deducted | 5,000 TZS |
| Money received | 95,000 TZS |
Index
An index is a calculated measure used to track the movement of a selected market group. A stock index may combine price changes from several listed companies. You cannot assume every share moved by the same amount as the index.
Interest
Interest is the price paid for using borrowed money, or the amount paid for allowing someone else to use money. Always check the period, charges and total repayment rather than reading the percentage alone.
| Loan illustration | Amount |
|---|---|
| Principal borrowed | 100,000 TZS |
| Interest charged | 10,000 TZS |
| Total before other charges | 110,000 TZS |
Initial public offering (IPO)
An IPO is the first sale of a company’s shares to the public. The company publishes an approved offer document explaining the business, price, use of funds and risks. Approval of that document does not promise that the share price will rise.
Liquidity
Liquidity describes how easily something can be turned into money without accepting a large price reduction. Cash is highly liquid.
Listing
Listing is the admission of a security to an exchange’s official market. A listed company must follow the exchange’s continuing rules and publish required information. Listing does not mean the exchange recommends the security.
Market capitalisation
Market capitalisation is the market value of all a company’s issued shares at a point in time. It changes when the share price or number of shares changes.
| Illustration | Amount |
|---|---|
| Shares issued | 1,000,000 |
| Market price per share | 500 TZS |
| Market capitalisation | 500,000,000 TZS |
Maturity
Maturity is the date when a loan or security reaches the end of its agreed term. For a bond, the issuer is normally due to repay face value then. Selling earlier can produce a different amount.
Mobile money
Mobile money is value stored and transferred through an electronic wallet linked to a mobile service. It can be used for payments, transfers and other approved services.
Net asset value (NAV)
NAV is the value of a fund’s assets after its debts are deducted. NAV per unit divides that remaining value among all units in the fund.
| Fund illustration | Amount |
|---|---|
| Assets | 1,200,000 TZS |
| Debts | 200,000 TZS |
| Value left for 1,000 units | 1,000,000 TZS |
| NAV per unit | 1,000 TZS |
National Social Security Fund (NSSF)
NSSF is a statutory social-security fund. Its official overview says it covers members in the private and self-employed sectors, collects contributions and pays eligible benefits.
Oversubscription
Oversubscription happens when buyers request more securities than the issuer offers. Some orders may then receive only part of the amount requested or none, depending on the allocation rules.
| Auction illustration | Amount |
|---|---|
| Securities offered | 1 billion TZS |
| Total bids received | 1.5 billion TZS |
Penalty
A penalty is an extra charge or consequence for breaking an agreement, such as paying late. It is separate from the original principal and may be separate from ordinary interest.
| Illustration | Amount |
|---|---|
| Payment already due | 100,000 TZS |
| Late penalty | 5,000 TZS |
| New amount due | 105,000 TZS |
Portfolio
A portfolio is the complete group of investments owned by a person or organisation. It may contain cash, shares, bonds, fund units or other assets. Its risk depends on what it contains and how the parts behave together.
Principal
Principal is the original amount borrowed or invested, before interest and charges. Loan repayments may contain both principal and interest.
| Loan illustration | Amount |
|---|---|
| Principal borrowed | 200,000 TZS |
| Principal repaid | 50,000 TZS |
| Principal remaining | 150,000 TZS |
Public Service Social Security Fund (PSSSF)
PSSSF is the Public Service Social Security Fund. Its official site describes its purpose as collecting contributions and paying eligible benefits to public-service employees in Mainland Tanzania.
Restructuring
Restructuring means formally changing a debt’s agreed repayment terms. A lender might extend the period, change instalments or alter other conditions. Get every change in writing and check the new total amount repayable.
Share
A share is one unit of ownership in a company. A shareholder may have rights such as voting or receiving a declared dividend, depending on the share. Its price can rise, fall or become worthless.
Simple interest
Simple interest is calculated only on the original principal for each period. Unlike compound interest, earlier interest is not added to the balance used for later interest.
| Two-year illustration | Amount |
|---|---|
| Principal | 100,000 TZS |
| Interest each year | 10,000 TZS |
| Total after two years | 120,000 TZS |
Stock
Stock is a general word for ownership in one or more companies. In everyday use, “a stock” and “a share” are often treated as the same thing.
Tanzania Insurance Regulatory Authority (TIRA)
TIRA regulates and supervises Tanzania’s insurance market. Its official description includes licensing insurance businesses and protecting policyholders and beneficiaries.
Treasury bill
A treasury bill is a short-term loan to the Government, issued for less than one year. It is normally bought below face value and pays face value at maturity.
| Illustration | Amount |
|---|---|
| Price paid | 950,000 TZS |
| Face value at maturity | 1,000,000 TZS |
| Difference | 50,000 TZS |
Treasury bond
A treasury bond is a longer-term loan to the Government. BoT says Tanzanian treasury bonds have terms longer than one year and make scheduled coupon payments. Their market price can fall before maturity.
Unit trust
A unit trust pools money from many investors and places it in a managed portfolio. Each investor owns units representing a portion of the pool. Fees reduce value, and unit prices can rise or fall.
Yield
Yield compares the income from an investment with its price. It is not always the same as a bond’s coupon because a bond can trade above or below face value. Check which type of yield a document reports and the date used.
| Bond illustration | Amount |
|---|---|
| Market price | 900,000 TZS |
| Yearly coupon payments | 100,000 TZS |
| Face value repaid at maturity | 1,000,000 TZS |
What to do next
- Use the anchor link for a term when sharing its definition.
- Check rates, fees and rules in a current official source before making a decision.
- Read What Is the DSE and How Does It Actually Work?.
- Review Interest, Fees, Penalties before borrowing.
- Learn how treasury bills work.
- Use the CMSA register or relevant regulator to verify a provider.
Frequently asked questions
What is the difference between a share and a stock?
A share is one unit of company ownership. Stock is the broader word for ownership in one or more companies, although people often use both words interchangeably.
What is the difference between interest and a fee?
Interest is the cost of using borrowed money over time. A fee is a separate charge for a service or transaction. Both can increase the total repayment.
Is a treasury bill the same as a treasury bond?
No. A treasury bill lasts less than one year and is normally sold below face value. A treasury bond lasts longer and normally pays coupons during its term.
Does a financial licence guarantee that I will not lose money?
No. A licence proves permission for stated activities. It does not guarantee performance, repayment or suitability.
Which regulator should I check in Tanzania?
Use BoT for banks, payment services and lenders; CMSA for capital-market businesses; and TIRA for insurance. BRELA registration alone is not a financial licence.
Last updated: August 2026.