NMB plans Sh2 billion ‘bodaboda’ deal to empower youth in Mwanza
Motorcycle taxi service is increasingly becoming important in ferrying people and goods in Tanzania. NMB Bank plans to dish out Sh1.8 billion for empowering the youth in Mwanza and Geita regions through motorcycle loans. PHOTO | FILE
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She said with cheaper and easier credit being made available, banks would get more borrowers, a situation she said would boost banking system and make it affordable to all Tanzanians.
Mwanza. National Microfinance Bank (NMB) has set a Sh1.8 billion budget to facilitate soft loans to motorcyclists as part of its nationwide youth empowerment project.
The event was graced by the minister in the Prime Minister’s Office (Investment and Empowerment), Dr Mary Nagu yesterday.
The amount would be spent on 340 motorcycles and tricycles (bajajis) which the bank plans to offer to cyclists operating in Mwanza Region.
The initiative, which also involves importers of motorcycles and tricycles, also drew officials from motorcyclist unions of Mwanza and Geita regions apart from top officials from the distributing firms.
The bank’s business manager, Mr Filbert Mponji, said the bank would provide a loan to a rider to enable him or her purchase a motorcycle or tricycle after paying 30 per cent of its total cost.
He said Mwanza was the second region to benefit from the project after Dar es Salaam, where the project was inaugurated last year.
Dr Nagu, commended NMB for empowering the youth and urged other banks to join it.
The minister also warned other banks to stop chasing for volume growth and urged them to soften credit criteria so that more clients can benefit from their services.
She said with cheaper and easier credit being made available, banks would get more borrowers, a situation she said would boost banking system and make it affordable to all Tanzanians.
“The strong adherent to property values as the condition to enable one acquire a bank loan is outdated and harmful to both the banking sector and poverty alleviation drive,” she said at the ceremony.
Dr Nagu also advised businessmen and farmers to stop using the unsafe traditional method of keeping money in their homes instead make use of safe products and services offered by NMB and other banks.
Earlier last month, the London-based Super Brand council that runs research across 84 countries named NMB among top 20 brands in Tanzania for 2013/14 and emerged number one in the banking industry.
NMB has also been awarded Best Bank in Tanzania by Euromoney in 2013.
NMB has over 154 branches countrywide and over 500 ATMs spread across the country. NMB services its large customer base through a multichannel delivery network of branches, ATMs, call center, internet banking and NMB mobile.
