Tanzania Postal Bank to improve after reform act - CEO

Tanzania Postal Bank customers should expect a better bank with more improved services after Parliament passed bill to transform it, the bank management has said.

TPB Chief Executive Officer, Sabasaba Moshingi told reporters that the new law will provide a framework for strengthening and reinvigorating the bank before it is listed at the Dar es Salaam Stock Exchange (DSE) next year to enable the people buy shares.

He said there was no need for customers to worry about the new development as the new legal framework will give them the opportunity of owning the bank through buying of shares.

“The recently endorsed Act doesn’t pave way for the bank to be privatised as some people have been worrying but rather it provides an opportunity for the bank to be more innovative and improve its services,” he said.

He also said that currently the bank is owned by the government but their intention is to give the chance to people to be the main owners which can only be realised with a new legal framework.

Mr Sabasaba further said that they have attained remarkable achievements for the past four years including renovating and opening new bank branches and introducing new bank services.

“As soon as the new Act is assented to by the President we will start working on more plans that will help the bank expand and reach more customers especially those living in rural areas,” he said.

Speaking recently in the Parliament during the tabling of the Bill, the Deputy Minister for Finance, Mr Mwigulu Nchemba, told the House that the Act seeks to incorporate the bank under the Companies Act in line with the Banking and Financial Institutions Act, (BAFIA), 2006.

“The Act also provides for the vesting of assets and liabilities and transfer of employees of the Tanzania Postal Bank to TPB Bank Limited and to provide for transitional provisions and other related matters,” said Mr Nchemba.

The deputy minister said the government, as the main shareholder with 86 per cent stake, would bankroll the bank in its expansion programme to reach more customers especially in rural areas.

The TPB was the only bank in the country operating under the Act of Parliament contrary to BAFIA, which requires all banks to be incorporated under the Companies Act.

Source: Daily News, reported by Lawrence Raphaely, from Dar es Salaam, Tanzania

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