CRDB, the business community sign post import financing deal

CRDB Bank Plc’s chief commercial officer Joseph Witts speaks during an event to sign a deal with the Tanzania Business Community Association in Dar es Salaam yesterday. With him is chairman of Tanzania Business Community Association, Mr Silva Kiondo (right) and head of business banking Toyi Ruvumbangu. PHOTO |THE CITIZEN CORRESPONDENT

By Alex Nelson Malanga

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Dar es Salaam. CRDB Bank Plc yesterday inked a deal with the Tanzania Business Community Association that seeks to hasten the pace at which goods are cleared from the port.

The post import financing solution was signed between CRDB Bank Plc’ chief commercial officer, Dr Joseph Witts and chairman of Tanzania Business Community Association, Mr Silva Kiondo.

“With this deal, we seek to end the challenge of delays in clearance of goods from the port,” said Dr Witts.

He said the bank decided to come up with the service as part of its efforts in supporting President Samia Suluhu Hassan’s resolve to improve Tanzania’s business climate.

The bank has also reduced its interest whereby clients for its Post Import Financing Solution will be charged a lending interest rate of 16 percent compared to 18 percent that is applied to normal loans on trading activities.

The service, he said, was only applicable to members of the Tanzania Business Community Association.

“The loan is issued in accordance with the amount that one is required to have to clear the goods from the port. It covers costs such as import duty, port charges and those paid to shipping agents,” he said, noting that the interest rate would go further down depending on one’s level of honesty in its repayment.

No extra collaterals will be required for the loan, said Dr Witts, noting that the client will receive the loan within seven days after filing the application.

Payments to Tanzania Revenue Authority, Tanzania Ports Authority and to the shipping agency will be effected directly as soon as the loan is approved.

The product will also relieve businesses the hassle of paying penalties for delays in clearing their goods from the port.

According to Tanzania Business Community Association chairman, Mr Silva Kiondo, the deal was a big leap in the history of the association.

“This is an opportunity that our members must effectively utilise in an effort to improve their businesses,” he said.