NMB welcomes new initiative by majority shareholder

DAILY NEWS Reporter

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National Microfinance Bank (NMB) has welcomed a partnership with its shareholders which reaffirms their long-term commitment to Africa’s future development, growth potential and the local financial sector.

NMB’s major shareholder, Rabobank of the Netherlands has announced that it will join forces with Dutch Development Bank (FMO) and the Norwegian State owned development fund (Norfund) and as a pro-active shareholder, they will engage in a hand on manner with NMB to help it grow and realize its ambitions.

“NMB welcomes this partnership of Rabobank with Norfund and FMO. We will continue to have a major shareholder who can support our longer term growth and development strategy in Tanzania,” said Prof Joseph Semboja, NMB Board Chairman in a statement in Dar es Salaam yesterday.

“The ambition of the partnership is to build strong, locally owned FSPs that serve small and medium enterprises (SMEs), the rural sector, and clients who have not previously had access to financial services,” he said. By teaming up, Norfund, FMO and Rabobank reaffirm their long-term commitment to Africa’s future development, growth potential and the local financial sector.

Norfund, FMO and Rabobank currently hold stakes in several financial service providers in Sub-Saharan Africa which they have agreed to pool together. The partnership is committed to strengthen and develop effective, inclusive financial systems in Africa with a long-term perspective. The transaction is subject to regulatory approvals being obtained, both at shareholder level as well as at the various national levels.

For NMB, this change will offer several opportunities. Similar to Rabobank, the partnership arrangement will continue to be proactive, provide knowledgeable board members and dedicated experts to support NMB’s growth strategies. Current technical and management services programs run by Rabobank will continue, while new programs will leverage on the added expertise of the new partners.

Rabobank is a Dutch cooperative bank that was founded by farmers in the late 19th century and with the Rabo Development-department it holds minority stakes in five investee companies in five countries, namely including NMB Tanzania, Zanaco - Zambia, BPR – Rwanda, BTM – Mozambique, DFCU – Uganda.