Letshego unveils new SMEs account

LETSHEGO Bank Tanzania Limited has introduced ‘Mjasiriamali Account’ for Small-Scale Entrepreneurs (SMEs) across the nation to instill a saving culture.

Ms Leah Phil, the Head of Sales for Letshego Bank, stated in Dar es Salaam yesterday that their goal is to have 900 entrepreneurs open accounts with the bank by the end of the year.

“Our main goal is to attract more petty traders to open the account because we want them to change their thinking and realise that they can utilise financial institutions for savings in addition to taking loans

“While much focus is placed on the importance of personal saving, SMEs owners also need to be encouraged to develop healthy saving habits within their businesses,” she said

According to her, the account will enable them to save with specific goals and their target is to reach SMEs who do not have business licences and Tax Identification Numbers (TIN).

“Growing a business typically requires a substantial cash infusion and comes with a high degree of risk. Instead of relying just on loan opportunities, SMEs should strive to partially finance their subsequent stage of expansion with their own resources. Savings should be considered an investment in your company’s future,” said Ms Phil.

Ms Phil added that the bank also launched ‘Mstaafu Account’ with the goal of having 100 accounts by the end of the year in order to match its obligation to improve life.

She said that the accounts are being offered now because it is clear that there is a demand for them to assist SMEs access banking services and broadening financial inclusion.

Letshego Bank Tanzania is part of the Botswana-based Letshego Group that runs banking operations in 11 African countries including Eswatini, (formerly Swaziland), Ghana, Kenya, Lesotho, Mozambique, Namibia, Nigeria, Rwanda and Uganda.

For the Wastaafu Account, she said the bank targets those who are preparing to retire so that they use the account to cash in their pension money whereby there are no monthly charges or any account servicing costs.

Data from the National Bureau of Statistics (NBS) shows that Tanzania’s mainland has an estimated four million petty traders popularly known as “machingas,” who do business in the 26 political and administrative regions.