TIB bank pumps Sh980 billion into key projects

Dar es Salaam. TIB Development Bank said it has spent nearly Sh980 billion financing different development projects in the country as of September 30, 2023.

According to the lender, private sector projects accounted for 93 percent of the financed projects, while seven percent were for the public sector.

TIB Development Bank’s acting managing director, Ms Lilian Mbassy, said yesterday that key projects were agriculture, minerals, tourism, manufacturing, and other services.

She was speaking during a press briefing organised by the Treasury Registrar’s office to inform the public about the performance of the institution.

“We have financed 253 projects in the agriculture sector worth Sh334.7 billion. The projects benefit over 10,230 people in 23 regions.

“In the energy sector, there were six projects valued at Sh12.03 billion, resulting in the production of 8.84 megawatts and benefiting 500, 000 households,” said Mbassy.

Other projects and their respective values are listed in brackets: minerals (Sh205.39 billion), tourism (Sh154.95 billion), manufacturing (Sh119.29 billion), construction (Sh45.33 billion), water (Sh14.89 billion), education (Sh14.82 billion), communication, and transport (Sh5.4 billion), while Sh3.72 billion used for financial partners.

According to Ms Mbassy, there have been 30, 000 employment opportunities created, improved access to financing for private and public developers, as well as facilitated access to basic public services in areas of education, health, and clean drinking water.

The TIB boss said strategic focus towards 2023/2024 will be on the energy, agriculture, water, real estate, and manufacturing sectors.

Asked how the bank grapples with the challenge of non-performing loans (NPLs) in the banking sector, Ms Mbassy said TIB has put in place measures to address the challenge.

The bank offers a range of single-digit interest rate loans to projects such as agriculture (between 4 and 5 percent), energy (between 6 and 7 percent), and water projects (6 and 10 percent).

“We have a designated team of experts in our appraisal department; we also have a technical team that analyses and reviews all loan applications before they are approved,” she said.

Ms Mbassy said the bank is also collaborating with the government through a debt-collecting task force that ensures every cent of the government’s money is not lost.

“For those cases that go to court, we have an agreement with the solicitor general that their hearing and determination are expedited,” she said.