Tanzania: NMB Loan Book Soars to 3.7tri/-, Prioritizes Local Content

THE loan book of top lender NMB Bank Plc has soared to nearly 4tri/-as it continues to support financing local development projects, including strategic ones being championed by the

Fifth Phase Government.

In doing so, the bank also supports foreign investors and companies involved in undertaking various projects and accords top priority to indigenous people and their enterprises as part of its financing policy to help and develop local content.

That was disclosed in Dar es Salaam by the bank's Trade Finance head, Ms Linda Teggisa, at the 44th edition of the Dar es Salaam International Trade Fair (DITF), while briefing a high level delegation of eight ambassadors and high commissioners accompanied by Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA), leadership at the bank's pavilion on Saturday.

According to her, NMB bank's lending has now topped 3.7tri/-which among other things, makes it the market leader in terms of financing development projects in the country, including supporting foreign companies involved in undertaking big strategic projects like the Standard Gauge Railway (SGR).

The bank's new loaning level, which is backed by a healthy balance sheet comprising assets worth 6.5tri/-as well as a robust deposits base of some 4.7tir/-is an increase of over 1bn/-at the end of 2019, when its loan portfolio amounted to about 3.59tri/-.

Ms Teggisa said the healthy financials puts NMB Bank in a better position to serve both local and foreign investors particularly those involved in projects to take Tanzania to the next level and emancipate the country from the vicious circle of abject poverty.

She further said NMB is actively involved in various sectors and projects that are aligned to economic and development priorities of the government notably agriculture, infrastructure development, energy as well as involvement in funding health and education activities.

"We are extremely pleased to inform you that as a bank we are here to serve the nation but we are also equally here to serve people who come to invest into Tanzania.

"What is key and critical to us is to ensure that as a bank we are able to deliver the services that our customers need whether it is in the retail space, where we are very well strong especially with the digitisation process that the bank has undergone in recent years," Ms Teggisa told the TCCIA leaders and their entourage of envoys that included some of their home companies, which are involved in implementation of the government's strategic projects.

The top diplomats who included those from Kenya, Uganda, Russia, the United Arab Emirates, Sweden, Pakistan, Turkey and Egypt toured the pavilion, showing committed that they back the government's growth and development agenda for the nation.

Equally important, she added, was the bank's ability to serve 98 per cent of all districts in the country through a network of 225 branches in additional to its innovations such as bancassurance and competitive mortgage facilities in the wholesale banking proposition.

Ms Teggisa said that as far as financing big development projects is concerned, NMB Bank is involved in a number of strategic projects such as SGR where they have supported its key and lead contractor, Turkish company Yapi Merkezi.

Figures provided by the bank recently shows that in the first five years of the current administration released 4tri/-to finance various development projects, including over 1.2tri/-for the strategic projects.

"Apart from big strategic projects like SGR, we have also been able to provide services in other sectors... including rural electrification supporting not only foreign contractors but also ensuring that we are able to provide financing to empower local ones.

"The issue of local content is a very key priority for us as bank to be involved in and fully support," she added.

On his part, TCCIA president Paul Koyi said it was the kind of financing NMB is providing and the size of the investments it is making in Tanzania's development efforts that made them visit its pavilion.

However, he thanked the lender for prioritizing the interests of Tanzanians in its operations and equally supporting endeavours to improve their welfare.