Majaliwa graces MCB launch of affordable loans for teachers, small-scale traders

DAR ES SALAAM: FORMER Prime Minister Kassim Majaliwa has launched a rights issue for Mwalimu Commercial Bank Plc (MCB), aimed at strengthening the bank’s capital base, expanding investment and improving access to affordable loans for teachers and small-scale traders.

The initiative, arranged by iTrust Finance Limited and supervised by the Capital Markets and Securities Authority (CMSA) and the Dar es Salaam Stock Exchange (DSE), is expected to enhance the bank’s growth and outreach.

Speaking in Dar es Salaam during the launch, Mr Majaliwa said the rights issue presents an opportunity for all shareholders, including himself, to increase their ownership in the bank.

“Through this programme, the bank will raise capital to expand services to more Tanzanians, strengthen the provision of affordable loans to teachers, employees and small and medium-sized enterprises, and advance digital banking to deepen financial inclusion,” he said.

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He added that the offer will also increase the value of shareholders’ investments, describing it as not only a financial opportunity but also a chance to contribute to the bank’s growth and the country’s economic development.

Mr Majaliwa urged shareholders to actively participate in the exercise, saying it is a moment to demonstrate confidence in the bank and build a financial legacy for future generations.

MCB Board Chairman Francis Ramadhani said shareholders on the register as of May 5, 2026 are entitled to buy three new shares for every one share held at a discounted price of 110/- per share.

He noted that the subscription window is now open, with shareholders able to purchase shares digitally through the DSE’s Hisa Kiganjani platform, at Chama Cha Walimu Tanzania (CWT) offices, or at MCB branches.

He described the rights issue as a critical step in strengthening the bank’s capital, supporting sustainable business growth and improving service delivery nationwide.

The exercise has been approved by the Bank of Tanzania and will be conducted under the supervision of CMSA and DSE to ensure transparency and efficiency.

Meanwhile, MCB Managing Director Richard Makungwa said the bank has recorded strong growth over the past five years, with total assets increasing from below 30bn/- in 2019 to 98bn/- in 2025.

Customer deposits rose from an average of 16bn/- to over 75bn/- during the same period, reflecting growing trust among clients and shareholders.

He added that the loan portfolio expanded from 16bn/- to 66bn/-, targeting individuals, particularly teachers, public servants and SMEs, who play a key role in the national economy.

Pre-tax profit also improved from a loss of 4.8bn/- in 2019 to a profit of 487m/- in 2025, signalling positive business performance and improved cost management.

Mr Makungwa said the bank aims to lead in innovative financial services while promoting value, integrity and social responsibility.

“We are positioning ourselves for sustained profitability, enhanced digital services to promote financial inclusion, and a stronger contribution to national development, particularly in education, youth empowerment and productive sectors,” he said.