The Speaker of the National Assembly, Dr Tulia Ackson, yesterday officially launched the branch of People's Bank of Zanzibar (PBZ) in Mbeya Region, with a call to the people to only access financial services from formalized institutions.
She further said that during this period when the Parliament, in collaboration with the government, is preparing to better improve policies overseeing financial services in the country, it is important that they stop doing business with bloodsucking financial institutions.
During the launching ceremony at the Mafiati area in Mbeya city,Dr Tulia, accompanied by Zanzibar Minister for Finance and Planning, Dr. Saada Mkuya Salum, Zanzibar Minister for Community Development, Gender, Elderly and Children, Riziki Pembe Juma, Zanzibar House of Representatives Budget Committee Chairperson, Mwanaasha Khamis Juma (representing the Minister of State-President's Office), PBZ Bank Managing Director, Arafat Haji, the bank's Board of Directors Chairman, Joseph Meza (right), CCM Mbeya Region Chairman, Mr. Patrick Mwalunenge, some religious leaders and representatives of the business community in the city, she said it is the government's plan that banking services are spread across the country to serve people also in rural areas.
Elaborating, she hailed the bank's pace of expanding its presence in the country, including in the city of Mbeya, and urged citizens to use formal financial institutions to access various financial services, including saving and loans, in order to benefit from the advantages offered by the institutions, including financial education on the benefits of savings and responsible borrowing.
"The importance of using formal financial institutions is significant, and the repayment process is well-organized, without exploitative interest rates, unlike loans provided by informal institutions, which are not regulated and charge high interest rates to exploit citizens.
The informal loans, nowadays disbursed through mobile phones without regulation, often deceive citizens and cause significant inconvenience not only to borrowers but also to their close contacts, as they receive malicious messages that serve to degrade the borrowers," she said.
Dr. Tulia also highlighted the collaboration between the Parliament and the government to ensure the financial sector in the country is governed by better policies that will attract citizens to use financial services in formal institutions. He emphasized the need to carefully consider the interest rates offered by formal institutions.
Furthermore, she stated that the Parliament is working closely with the government to address the issue of informal loans and their disadvantages for the benefit of citizens.
On the branch, Dr. Tulia mentioned that its establishment in the region is a result of economic growth, quality infrastructure, and favorable investment policies that attract various stakeholders to the region.
She called on PBZ Bank leaders to ensure that their services cater to all segments of the population based on age, gender, and personal economy, with priority given to helping youths through friendly loans that aim to enhance their economic status through their businesses and agriculture.
On her part, Minister Riziki stated that the establishment of the bank branch in the region is a result of excellent collaboration between the Revolutionary Government of Zanzibar, which owns the bank's 100 per cent share and the government of the Union.
She urged residents of the region to take advantage of the arrival of the bank branch as an opportunity to open up business and agricultural opportunities between the region and Zanzibar.
Earlier, during his speech at the event, Mr. Arafat Haji, the Managing Director of PBZ Bank, said that the opening of the branch in Mbeya is part of the bank's strategy to expand into various regions of the country, while fulfilling its fundamental duty of creating economic opportunities among citizens from all parts of the union.
"This branch will open more business opportunities for residents of this region and also create trade relationships between them and Zanzibar, by focusing on the available opportunities in these two parts including agriculture and trade. Our services are friendly to all groups, and I am confident that we will attract more customers. We welcome everyone to come and experience the difference," he said.
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Following Dr. Tulia's request, PBZ Bank pledged to offer ten motorcycles to support the efforts by Speaker, who is also a Member of Parliament in the area to help the youth in the region, particularly the 'bodabodas'
In his remarks, the District Commissioner of Mbeya, Mr. Benno Malisa, who represented the Regional Commissioner, stated that the increase in financial institutions in the region is a positive sign of economic growth and the presence of a favorable business and investment environment.
He urged the bank to be part of driving the region's development agenda by providing good services including commercial and agricultural loans.
