Selcom Microfinance Bank Tanzania eyes growth of capital after rebranding

Dar es Salaam. Access Microfinance Bank Tanzania Limited has rebranded to Selcom Microfinance Bank Tanzania Limited as it seeks to grow its capital through services to underserved retail businesses by increasing their access to loans.

The bank says the initiative aims at growing its capital from the present Sh8.9 billion, which is above the central bank’s requirements, to Sh20 billion in the next two years, reflecting significant growth compared to the previous five years.

The bank’s chief executive, Mr Julius Ruwaichi, yesterday highlighted the vast number of small traders and the great potential to stimulate the economy and increase employment, noting however that many of these traders have not been reached by the banks.

Mr Ruwauchi said the new move has come after Selcom Paytech became the new majority shareholder committed to expanding the bank’s service reach to the targeted group of traders.

“We have already prepared a model that will enhance our reach to those retail businesses. Selcom Paytech, our majority shareholder, is trusted in the financial and payment sectors. As we transition, we bring with us the same level of dedication, reliability, and innovation that you have come to expect," he added.

Mr Ruwaichi added that the significant economic potential in retail businesses lies in the large number of unreached people by financial institutions, including banks, noting that the bank plans to reach these businesses through Selcom’s systems.

He said the bank will continue to provide crucial financial support to micro and small enterprises, a sector that is vital to Tanzania’s economic growth.

“As we embrace our new identity, our focus remains on upholding the highest standards of integrity, innovation, and customer service. We are grateful for the continued support of our customers and look forward to servicing them.”

According to him, since the bank’s establishment in 2007, over 200,000 small-scale traders have benefited from the loans amounting to Sh1.6 trillion, adding that through them they have been able to benefit many others and will continue benefiting more players in the business community through executed strategies.

Mr Ruwaichi said according to the laws governing the country, it should be clear that the change does not affect any rights or obligations of the bank or render defective any legal claims proceedings by or against its stakeholders, saying, everything will be moving from the previous name to the new.

“I would like to assure our customers that their deposits are safe because, until the decision to change the name is reached, the Bank of Tanzania (BoT) has blessed the move. So, operations will continue as usual with rapidly grown capital as compared to the previous five years,” he said.

On behalf of the board of directors, Ms Tusekile Kibonde said the bank’s journey started in 2007 and has had great performance every day, noting that the arrival of another shareholder who has invested a lot of capital to streamline the provision of services to the majority of clients was a significant boost.

She said their main focus will remain on the provision of services to retail businesses because 40 percent of employed Tanzanians come from that group and that the change of name will also increase innovation.