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| 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.
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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