The deal will enable the NMB to obtain long-term and affordable funding to support working capital and investment needs of the bank’s MSME customers nationwide.
NMB Head of MSME Business Filbert Mponzi, speaking at the signing ceremony, said the bank lends to 45,000 micro enterprises and 10,000 SME’s through its 150 branch network and business centres, nationwide.
“We disburse some 20 million US dollars (over 32bn/-) to MSMEs monthly... we serve sectors ranging from trade, agro-processing, services and manufacturing,” said Mr Mponzi, hinting that most of credit facilities are of short term of less than a year, with amounts not exceeding 30m/-.
But, with EIB financial boost, the bank will now be able to provide medium term loans, said the head of MSME department.
Chief Financial Officer Waziri Barnabas said, “NMB is already one of the strongest and healthiest banks in the Tanzania and through this EIB facility, we will be able to match the tenors of our funding sources with those of our medium term customer loans, further improving our balance sheet’s quality.”
The bank’s Chief Executive Officer, Mr Mark Wiessing, said NMB has close to 1.8 million customers who are a reflection of Tanzania as a nation— government, private sector, civil servants and other salaried employees, informal traders, with all sectors represented.
He said that MSME segment is particularly promising and growing rapidly, representing about 20 per cent of the bank’s lending activities. “The EIB facility will allow us to continue providing longterm loans at affordable rates to more micro enterprises and emerging SME’s, which have proved to be the real engine of country’s economic growth,” he said.
The bank’s Chief Executive Officer, Mr Mark Wiessing, said NMB has close to 1.8 million customers who are a reflection of Tanzania as a nation— government, private sector, civil servants and other salaried employees, informal traders, with all sectors represented.
He said that MSME segment is particularly promising and growing rapidly, representing about 20 per cent of the bank’s lending activities. “The EIB facility will allow us to continue providing longterm loans at affordable rates to more micro enterprises and emerging SME’s, which have proved to be the real engine of country’s economic growth,” he said.
Source: The Daily News, reported from Dar es Salaam
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