Tanzania Daily News (Dar es Salaam)

Tanzania: Banks Challenged On New Innovations

THE government has challenged financial institutions to develop products suiting the area in which they are located.

This was said over the weekend by the Minister of Finance and Economic Affairs, Dr William Mgimwa, at the launch of two DCB Commercial bank branches of Chanika and Ukonga in Dar es Salaam. "There is a close relation between country's economic development and increased financial facilities particularly in supporting various activities geared at eliminating poverty," remarked Dr Mgimwa.

He said worldwide, the banks which have been leading in innovations were able to expand considerably and made significant contributions to the economy.

He said by listing on the Dar es Salaam Stock Exchange (DSE) and changing the licence from Dar es Salaam Community Bank to DCB Commercial bank are among the few innovations which the management of the financial facility has made in its 10 years of operation.

Dr Mgimwa urged citizens in the areas where the new bank branches were opened to cultivate the habit of saving so that they may qualify for loans. Also he said the government was considering appropriate ways to ensure that the three Dar es Salaam municipal councils, which are among the DCB large shareholders contribute significantly to the growth of the bank through savings.

The DCB Commercial Bank, Managing Director, Mr Edmund Mkwawa, said the opening of the two branches bring the number to six, and with the new licence, the bank will continue to extend its outreach to other parts of the country. The bank has deposits worth 77.9bn/-, and has disbursed loans valued at 246.1bn/- to more than 251,315 entrepreneurs.

Likewise, he said the bank offered 41bn/- solidarity group lending to more than 127,518 groups of which 78 per cent are women. He said next year the bank will set aside 15bn/- as house loans for all those who will fulfil conditions.

The chairman of the board, Ambassador Paul Rupia, said the increased number of customers to 251,315 prompted the bank seeking to change the licence that would help in extending its services to other parts of the country. "We will open a window for corporate customers but without affecting the vision of the bank to serve small medium enterprises (SMEs)," he said.

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