Govt urges banks on expansion of services to remote rural areas

By Correspondent David

Ministry of Finance Deputy Minister Adam Malima (C ) congratulates CRDB Bank Managing Director Dr Charles Kimei moments after opening the Capital Market Day presentation yesterday in Dar es Salaam.

Deputy Minister of Finance Adam Malima, has challenged financial institutions to work on expanding their services to reach Tanzanians in remote rural areas.


Speaking to journalists yesterday in Dar es Salaam soon after opening the CRDB capital markets day seminar, Malima said the country’s economy has been growing at an annual rate of six to seven percent signifying a favourable investment environment.

Without giving the specific data, the deputy minister said the financial sector has expanded but still more investment is needed.

He said despite the increase of financial services, many Tanzanians especially those in remote areas have not been reached.

“We are doing well in the financial sector,” he said “…but we need the services to benefit also the people in remote villages,” he urged.

He applauded CRDB bank for expanding its banking services to mobile banking noting that approximately 45 percent of Tanzanians use mobile phones to get banking services and so the move increases the number of persons reached.
CRDB Managing Director Dr Charles Kimei said exposing the bank’s financial position will reassure stakeholders and attract them to purchase shares.
For 2013, the bank recorded interest income growth of 236bn/- compared to the 206bn/- in 2012.

“The increase is equivalent to 14.22 percent and is attributed to improved interest margins and loans intensification at 10.30 percent,” he explained.
He added that the bank’s net income has also increased from 80bn/- in 2012 to over 84bn/- in last year with the net income margin remaining stable.

Profit margin growth is 4.8 percent attributed to heavy investment in branches, Automatic Teller Machines (ATMs) and alternative banking channels such as agent banking.

Chairman of the CRDB board of Directors Martin Mmari said a favourable investment environment, the bank’s good management and increased support from customers are the factors that have led to the bank’s success.

During 2013, the global economy faced numerous challenges particularly due to the Euro zone debt crisis but Tanzania macroeconomic performance continued to strengthen with Gross Domestic Product (GDP) accelerating to 7 percent against 6.8 percent in 2012. 

SOURCE: THE GUARDIAN