CRDB Bank opens desk for China transactions

The Managing Director of CRDB Bank, Dr. Charles Kimei.
Dr Kimei
The CRDB Bank has capitalised on the ever growing business traffic between China and Tanzania by establishing a special desk to cater for business transactions involving traders from the two countries.

The desk which is a result of the alliance of CRDB Bank and Bank of China and HSBC, acts as a one stop centre for intermediation for trading activities between Dar es Salaam and Beijing.

That means traders of the two countries could now access all banking platform in either country by using CRDB Bank in Tanzania and the Bank of China and HSBC in China without language and exchange rate barriers. 

CRDB’s Managing Director Dr Charles Kimei said during the launching that trade between China and Tanzania was increasing at an extremely faster pace hence pulling the people more closely to demand for banking services.

“All that is happening in the real economy needs to be supported by the financial system for it to happen smoothly and efficientlyÉ amid low risk,” Dr Kimei said.

The CRDB chief said currently most financial transactions are being concluded directly without the intermediation banks, which is a risky undertaking. “This is too risky,” Dr Kimei said, “banks need to come in between to mitigate risks of default by unregulated individuals.”

CRDB, he said, could provide guarantees against all transactions either in China or Tanzania. The China Ambassador to Tanzania, Mr Lu Youqing, said the current trade volume between the two countries stands at 2.5 billion US dollar at the end of last year.

“This amount is not realistic oneÉ as (currently) China imports leather from Tanzania through a third party, which is Italy. If all this is captured the trade volume will increase,” Mr Lu said. 

He said according to the Tanzania Investment Centre data, China is the second top investor in the country where last year its investment reached US$1.0 bilion US and created 18,000 permanent and 300,000 temporary jobs.

Bank of Tanzania statistics show that Tanzania’s exports to China increased from 101bn/- in 2005 to 908bn/- in 2010, a nine-fold upswing, while imports from Beijing rose from 245bn/- to 1.213tr/-, went up five times over the same period.

The chief guest, the Minister of State in the Prime Minister’s Office (Investment and Empowerment), Dr Mary Nagu, lauded CRDB move, saying it was high time to have a common financial solution between Dar es Salaam and Beijing thus cementing the historic diplomatic and trade ties.
Source: The Daily News, www.dailynews.co.tz, reported by Abduel Elinaza in Dar es Salaam
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