Zanzibar President Amani Abeid Karume has urged financial institutions to invest here in a bid to assist small and medium entrepreneurs.

He made the call in a speech to officiate the opening of the first NMB Bank branch in Zanzibar at Darajani area.

President Karume said if small businessmen and farmers were provided with loans, they would carry on their activities without waiting for assistance from the Government.

"Through loans, financial institutions can assist in our endeavour to fight poverty," he said.

He felt that financial institutions, especially banks, had not invested enough in the agriculture sector in the country.

Mr Karume said financial institutions should give preference to agriculture because it was still the mainstay of the country's economy.

He said by doing so, the institutions would also be expanding their business portfolios.

He said his government was putting in place a conducive environment, including good laws and policies, that would enable financial institutions to invest in agriculture and other sectors.

NMB becomes the ninth financial institution to open its doors in Zanzibar since the 1964 revolution.

President Karume hailed the bank for its decision to venture into the Zanzibar market, noting that the move would help stimulate the economy.

He said the situation was encouraging as more banks had lodged applications to open branches in Unguja and Pemba, denoting that the Zanzibar economy was picking up.

Speaking earlier, the NMB board chairman, Mr Meshack Ngatunga, said the bank which has a total of 133 branches in the country, would continue offering quality services.

"We believe that what we are doing is important in the war against poverty; so we will not give up," he said.

He said the bank was attracted to open a branch in Unguja following growing investment in the isles as a result of good policies coupled with peace and tranquillity.

Mr Ngatunga said each year NMB has been setting aside Sh500 million for financing social activities and projects run by groups.

In Zanzibar, he said, NMB has provided Sh300 million to Zayadesa, a non governmental organisation run by First Lady Shadya Karume. It deals with a campaign against drugs and helps orphans.

"Apart from issuing bank services to our customers, we are also in the forefront to assist the community in which we are operating and finance social activities," he elaborated. The bank opened its first branch Pemba in 1997, he added.