Mantrac, NMB unlock equipment finance for miners and contractors  

DAR ES SALAAM: NMB Bank Plc and Mantrac Tanzania Limited have signed an agreement to expand access to financing for machinery and equipment among miners, contractors and businesses operating in Tanzania’s mining, construction, infrastructure, energy and manufacturing sectors.

The partnership combines NMB’s financing capacity and nationwide network of more than 250 branches with Mantrac Tanzania’s expertise in supplying and servicing Caterpillar equipment, including mining and construction machinery and power generators.

The memorandum of understanding was signed in Dar es Salaam by NMB Chief of Retail Banking Filbert Mponzi and Mantrac Business Planning and Operations Director, East Africa Region, Levite Dongmo.

Under the arrangement, qualifying customers will be able to finance equipment purchases with an initial contribution of between 20 and 25 per cent. NMB will structure financing and repayment schedules around customers’ cash flows, business cycles and project requirements, subject to its credit policies and approval processes.

Mponzi said the high upfront cost of machinery remains a constraint for businesses with viable projects, established markets and credible plans for growth.

“When we finance machinery, we are not financing equipment alone. We are enabling roads, mines, industries, jobs and Tanzania’s capacity to build its economic future,” Mponzi said.

He said NMB provides more than TZS 200 billion in loans each month to entrepreneurs and small and medium-sized businesses, adding that the Mantrac partnership would strengthen the bank’s ability to meet the specialised capital needs of miners and contractors.

Under the agreement, NMB will undertake credit assessments and develop appropriate financing structures, while Mantrac will supply the equipment and provide technical support, after-sales services and manufacturer-approved maintenance.

Equipment financed through the arrangement will carry warranties of between 24 and 36 months, depending on the type of machinery, project requirements and approved contractual terms.

Mponzi said the structure was designed to ensure that customers receive not only financing, but also suitable equipment and dependable technical support.

“When machinery operates reliably, projects are completed on time, costs are controlled and the customer’s capacity to repay is protected,” he said.

Dongmo said the partnership would improve access to reliable equipment and professional support for businesses seeking to increase production and expand their operations.

“Combining NMB’s financing capacity with Mantrac’s machinery, generators and technical expertise will unlock investment and accelerate growth across some of Tanzania’s most important economic sectors,” Dongmo said.

The partnership is expected to help miners and contractors increase operational capacity, reduce costly equipment downtime and complete projects more efficiently, while directing additional financing towards sectors that create jobs and support Tanzania’s economic development.