31 May 2012

Tanzania: Govt Promises 800 Billion/ - Capital to TIB

Arusha — The Government is to give Tanzania Investment Bank (TIB) between 400 and 500 million US dollars (600bn/- to 800bn/-) as seed money to allow the bank to provide long term financing and offer new financing instruments.

The Deputy Minister for Finance, Janet Mbene, while opening the 38th Association of African Development Financing Institutions (AADFI) here on Wednesday , said TIB will receive the funding to increase its capacity to finance development sectors, particularly infrastructure, before it enters the capital markets for further funding needs.

According to the Deputy Minister, this level of capitalization would be achieved in a period of less than five years.

"Tanzania Investment Bank (TIB) is our leading national Development Finance Institution (DFI). It is fully owned by the Government of Tanzania... the government fully supports the AADFI, its mission and its focus including the benefits and synergies it provides to our current growing national DFIs," said Deputy Minister Mbene.

Speaking shortly before welcoming the Deputy Minister, TIB Managing Director Peter Noni, who is also the AADFI chairman, said his bank will continue striving to implement all development plans it has to achieve its goals as a development bank.

He also said as regards capacity building, the association has continued to make slow progress in its efforts to strengthen the skills of professionals in African DFIs.

"Lack of adequate funding remains a big challenge towards implementation of the scheduled annual capacity building programmes. There are still huge funding requirements especially for young and upcoming DFIs, for which a more elaborate and long term technical assistance is required," he said.

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