Investment inflows excite local banker

Exim Bank Tanzania Limited has re-affirmed its commitment to support economic development in Tanzania as the country braces for more investment opportunities.

Speaking during the launch of the first issue of the Eximite Magazine, a quarterly publication by the bank, the Exim Bank Tanzania Board Chairman, Mr Yogesh Manek, was upbeat on increased foreign Direct Investments (FDIs).

“Increased FDIs inflows to Tanzania and other East African countries is creating more opportunities for the banking sector. “Exim bank will continue playing a pivotal role in supporting various investment initiatives across the country and beyond,” he explained.

According to the World Investment Report 2013, lauched in Dar es Salaam on Wednesday, Tanzania registered significant increase in FDIs in 2012 despite a major global downturn. 

The report indicates that Tanzania registered 38.77 per cent increase in FDIs from US$ 1229.4 million in 2011 to US$ 1,706 million as global trend shows alarming decline in investment inflows.

“Contrary to the global fall in FDIs inflows, Tanzania had a significant increase,” the Executive Director of the Tanzania Investment Centre, Mrs Juliet Kairuki said at the launching ceremony of the report. The drivers of the substantial increase in the FDI inflows to Tanzania are mainly oil and gas exploration activities in southern regions of the country, she said.

She said the FDI flows for Tanzania increased by US$ 476.6 million making the country increase its share in the African region and maintaining its share in East Africa by 27 per cent. 

Tanzania’s share of FDIs to Africa rose from 2.6 per cent in 2011 to 3.4 per cent last year, she said adding Tanzania’s shares of FDI in Africa were 1.8 per cent and 4.2 per cent in 2009 and 2010 respectively.

The TIC boss said the investment report indicates growing contribution of FDIs to the national income as it contributed more than 38 per cent. She said the inflow trend of FDIs in Tanzania showed a steady increase as it is the case with Africa and East African countries.

The 2013 report shows there is a steady increase for the East African countries except Burundi and Kenya. Uganda leads in the East African region for attracting largest FDI inflows thanks to the discovery of oil fields in the East African country.

On the global level, the report shows global foreign direct investments fell by 18 per cent to US$ 1.35 trillion in 2012 and are likely to remain at a similar level this year. 

The FDI recovery expected to take longer than expected mainly because of global economic fragility and policy uncertainty, according to the report.

The Exim Bank Managing Director, Mr Anthony Grant, said during the event that the bank is set to continue on a confident programme of deliberate expansion and is preparing to open additional branches across the country.

“We are set within weeks to open a new state-of-the art corporate branch in Arusha and another branch in Tabora at the end of the year or very early next year as part of our expansion strategy. 

The strategy will geographically take further out our services as we also deepen our delivery channels with agency banking, mobile banking and internet banking options,” Mr Grant said.

The Exim Bank Senior Manager (Training & Development), Mr Priti Punatar, said the magazine will create for the staff another platform to share and celebrate professional and personal achievements. 

Mr Punatar said her bank is committed to reinforcing effective communication within the bank and recognised the importance of keeping staff and stakeholders up to date on current events in the organisation.
Source: The Daily News, reported from Dar es Salaam, Tanzania
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