Tanzania bank earmarks Sh300 billion for trade financing

Dar es Salaam. The Tanzania Commercial Bank (TCB) has earmarked Sh300 billion to facilitate both large and small-scale traders (SMEs) to stimulate economic growth this year.

The bank’s chief executive officer, Mr Adam Mihayo, revealed the plans on Tuesday March 9, 2024, during a meeting with editors, coordinated by the Treasury Registrar.

Mr Mihayo said that the SME sector is crucial for economic development as it contributes approximately 30 percent of the economic growth.

“We aim to make significant investments in the production,” he said, adding that the bank identified the SME sector as beneficial for the country’s growth.

“Empowering them with capital will facilitate their growth, create more employment opportunities, and expand the tax base," he said.

He said that through the allocated funds, more than 2,000 entrepreneurs are expected to benefit.

The move comes at a time when the bank has recorded a profit before tax of Sh13.6 billion in the first quarter of 2024.

He emphasised the decision to support SMEs due to their impact across various sectors, citing agriculture which employs the largest segment of adults, as an example.

"There are also many entrepreneurs who, through our partners such as the agricultural bank, inspire us to continue assisting them," Mr Mihayo added.

He mentioned that the bank has been strategising in alignment with government priorities, highlighting its role in facilitating the procurement of railway carriages.

He said that early implementation of these projects would demonstrate the economic value the government expected to gain.

Furthermore, he expressed the bank’s readiness to invest sufficiently in digital services to enhance accessibility and ease of service delivery.

"As an institution, instead of solely relying on interest income, we are also broadening our revenue streams, which will help reduce our costs and improve service accessibility," he said.

Through the investment, the bank expects to reduce service delivery time.

"We believe that by such investment, within three to five years, we will be able to grow and become the third-largest bank in the country. We believe it's achievable," Mr Mihayo said.

Tanzanian Editors Forum’s member of the executive committee, Mr Neville Meena, emphasised the importance of the bank, reminding customers that TCB is associated with other banks.

"It is important to remind citizens that this is the Postal Bank, and nothing has changed; instead, it has improved from what it was," Mr Meena said.